‘Alternative data’ summary notes comments due in a month
April 19, 2017 -- Comments about use of alternative data use in the credit process are due May 19 for a CFPB “request for information,” according to a newly posted NASCUS summary on the agency action.
In the summary, NASCUS notes that the bureau defines “alternative data” as any data that are not traditional. The data could be assembled and managed in the core credit files of nationwide consumer reporting agencies, including tradeline information, credit inquiries, information from public records such as public records relating to civil judgments, tax liens and bankruptcies, the summary points out.
The summary also lists possible examples of “alternative data;” “alternative” modeling techniques that firms are using or contemplating, and; possible consumer benefits and risks of alternative data.
The summary also outlines the “questions posed” by the bureau for commenters to consider.