The Bureau has issued a report to Congress which examines different credit scoring models and products, their availability and use, and how differing availability of types of credit scores may disadvantage consumers.
Section 1078 of the Dodd-Frank Wall Street Reform and Consumer Protection Act required the Bureau to "conduct a study on the nature, range, and size of variations between the credit scores sold to creditors and those sold to consumers by consumer reporting agencies that compile and maintain files on consumers on a nationwide basis..., and whether such variations disadvantage consumers," and then to report to Congress on the results of its study.
The Bureau stated that it will compile "a substantial database in order to analyze further the nature, range, and size of variations between the credit scores sold to creditors and those sold to consumers by [consumer reporting agencies (CRAs)]" which it hopes will "shed light on whether...potential harms...could be occurring, and to what degree." The database will include credit reports and credit scores for 200,000 individuals from each of the three nationwide CRAs (TransUnion, Equifax, and Experian). Each of those CRAs has agreed to construct and provide to the Bureau a random sample of 200,000 consumer reports from its database, excluding personally identifiable information such as consumer names, Social Security numbers and dates of birth.
The Bureau intends to perform four comparisons of the compiled data:
- Absolute comparisons (comparisons of actual numerical scores)
- Relative comparisons (after conversion of scores into measures of relative creditworthiness, particularly for scoring models which use different score ranges)
- Comparisons within score sub-groups (e.g., score percentile ranges)
- Comparisons within groups defined by credit history characteristics (e.g., consumers with particularly clean or limited credit histories)