Governance
FCRA / ECOA
FCRA (Fair Credit Reporting Act) and ECOA (Equal Credit Opportunity Act) are US federal statutes governing credit reporting and lending decisions. AI in lending must produce explainable adverse-action notices that satisfy ECOA's 'specific reasons' requirement and FCRA's accuracy and dispute-handling rules. Black-box lending models without explainability layers do not pass regulator review and create class-action risk.
Related terms
- AI Governance — AI governance is the system of policies, controls, and accountabilities that determines what AI is allowed to do inside an organization, who approves AI deployments, how AI decisions are audited, and how risk is managed.
- Model Risk Management (MRM) — Model risk management (MRM) is the framework banks and insurers use to validate, monitor, and govern statistical and AI models that affect consequential decisions.