ANSI seeks comments on proposal for consumer credit scoring.
Press Release Summary:
Austrian ISO member sterreichisches Normungsinstitut submitted work item proposal for standard specifying requirements of consumer credit scoring. Seeking to provide procedural requirements for lenders assessing creditworthiness in retail business, proposal will allow for variety in processes, systems, criteria/weightings, and models/measurement methods. As U.S. member to ISO, ANSI invites stakeholders to submit comments by March 13, 2009, to Steven Cornish at scornish@ansi.org.
Original Press Release:
ANSI Seeks Comments on New ISO Work Item Proposal for Consumer Credit Scoring
New York February 3, 2009
The Austrian member body to the International Organization for Standardization (ISO), -sterreichisches Normungsinstitut (ON), has submitted a new work item proposal for a standard that specifies requirements of consumer credit scoring. As the U.S. member body to ISO, the American National Standards Institute (ANSI) invites all interested stakeholders to submit comments by March 13, 2009.
The ON proposal seeks to provide procedural requirements for lenders to follow when assessing creditworthiness in the retail business. The drafted proposal includes an outline for quantitative methods and information on a consumer credit scoring description; scoring concepts; scorecard model development and documentation; scoring data; scoring organizations; scoring procedures; and scoring uses.
The objective of the proposed standard is to prevent the existence of methods and processes that are driven by conflicts of interests, that are untrustworthy and deliberately or unacceptably false, and that are able to manipulate the retail credit markets as a result of failures in accreditation or auditing systems.
ON states in the draft that the proposed standard "is not intended to establish a technical standard that lays down uniform, constant and immutable credit scoring criteria, statistical methods and processes." To account for rapidly changing credit markets, process challenges, and technologies, the document will allow for variety in processes, systems, criteria and weightings, and models and measurement methods.
All comments should be sent to Steven Cornish, program director for international policy at ANSI (scornish@ansi.org). Feedback received by the March 13 deadline will be compiled for consideration in the development of a recommended ANSI position and comments, which will then be presented to the ANSI ISO Council (AIC) for formal approval.
