CFPB Confirms Movement Toward Serving the Credit-Invisible With No-Action Letter

According to an article by HousingWire, the Consumer Financial Protection Bureau (CFPB) issued a no-action letter to Upstart Network, a company using alternative data to make credit and pricing decisions. In doing so, the CFPB sent signals to other market participants that it would not take action against them as they look to launch new products. This is the continuation of a policy instituted in February with the stated intention of learning more about "credit invisible" borrowers. According to Director Richard Cordray, "We also want to understand how market participants are, or could be, mitigating certain risks to consumers that may arise from these innovations."

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