WHITEPAPER

CFPB Circular 2022-03 Reminds Law-Abiding Lenders That They Must Generate Accurate Adverse Action Reasons; Zest is Here to Help

We’re sure that by now you’ve seen the recent 2022-03 CFPB circular. It serves as an important reminder that creditors must give consumers accurate information about why they are denied credit. We at Zest wholeheartedly agree with the CFPB on this. As you’ve experienced, Zest has always taken the need for accuracy seriously.

The circular presents a great opportunity to take another look at the methods that Zest’s technology uses to accurately explain machine learning models. This white paper reviews a few of the academic articles that support using the methods of machine learning that Zest enables through our technology. It also contains the results of an empirical validation we performed that confirms Zest’s method generates accurate denial reasons.