WHITEPAPER

CFPB Circular 2022-03 Reminds Law-Abiding Lenders That They Must Generate Accurate Adverse Action Reasons; Zest AI 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 AI wholeheartedly agree with the CFPB on this. As you’ve experienced, Zest AI has always taken the need for accuracy seriously.

The circular presents a great opportunity to take another look at the methods that Zest AI’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 AI enables through our technology. It also contains the results of an empirical validation we performed that confirms Zest’s method generates accurate denial reasons.