Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 800 - DISCRIMINATION INVOLVING CREDIT
Section 800.50 - Empirically Derived Credit Systems
Current through Register Vol. 48, No. 12, March 22, 2024
a) The exemption in Section 4-104(B)(2) of the Act [775 ILCS 5/4-104(B)(2) ] does not authorize the consideration of any prohibited characteristic, other than age under an empirically derived credit system, and allows for the consideration of age only if the system is "demonstrably and statistically sound". A system shall be deemed "demonstrably and statistically sound" if each of the following standards is satisfied:
b) A creditor may adopt a credit system used by another creditor, or use data from another creditor in developing its own system, as long as the system otherwise meets the requirements of this Section. If the creditor is unable to validate the system based on its own credit experience in accordance with subsection (a)(3) of this Section, it must validate the system as soon after implementation as sufficient credit experience becomes available. If the system fails this validity test, its use must immediately be suspended.