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(1/3) Today I held our second hearing as Chairman of the House Fintech Taskforce, “Examining the Use of Alternative Data in Underwriting and Credit Scoring to Expand Access to Credit.”
(2/3) Lenders and credit reporting agencies have begun collecting, storing and utilizing alternative data, including personal online behavioral data gained from social media and outside data brokers to measure consumer creditworthiness.
(3/3) While this practice has the potential to expand credit, it also warrants caution and proper oversight to ensure that use of alternative data does not harm consumers.
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