Investigations Against Racially Biased Credit Reporting

If you have good credit, you are on an upward trajectory. You have the opportunity to make large purchases like a car or a home; then, the fact of having made those purchases will increase your credit score further. On the other hand, poor credit can lock you out of credit-building opportunities. People of color, especially black people, suffer from a system built to put them at a disadvantage which, in turn, negatively affects their credit scores.

The credit scoring system draws upon data from systems that exclude people of color, putting them behind from the start.  To obtain home mortgages and auto loans, people of color must often incur higher interest rates and marked up fees, which can be preclusive. So, people of color are more likely to rent instead of buy.  Since rent, utility, and phone payments usually do not count toward your credit score, minorities’ scores remain low, even with good payment histories.  As a result, the step up to the American dream of home ownership is made perpetually less likely for people of color because of the trappings of the credit scoring system.   

If you were barred from credit-building opportunities due to potentially discriminatory policies, schedule your free consultation today! Contact us by filling out the form or calling (877) 674-0886.

Additionally, economic crises like the COVID-19 pandemic can cause job loss, resulting in an inability to pay existing debts and a disproportionate impact on people of color. Further, already more likely to be low income, people of color do not get the debt collector leniency white individuals do. Instead, they are sued and default judgment is taken against them at twice the rate experienced by white people.  All of this can negatively impact credit scores for years, preventing people of color from securing a mortgage or car loan in the future.

In sum, despite the existence of anti-discrimination legislation like the Equal Credit Opportunity Act, the remnants of discriminatory practices still taint much of the American economy, disproportionately punishing black people for not having equal access into the credit market.

Your Merit Should Be Recognized

If you are a person of color and you can’t get a mortgage or car loan because of your credit score, contact us today by completing the form or calling (877) 674-0886 today.

We Are Here to Help

At McCune Wright Arevalo, LLP, we are no strangers to defending our clients from injustice and unfair practices. Our Racial & Economic Justice attorneys are devoted to righting wrongs in civil rights, employment, and consumer litigation legal matters. Partners Joe L. Richardson and Elaine S. Kusel are dedicated to holding discriminatory systems accountable and attaining justice for all Americans, regardless of race, ethnicity, gender, or sexual orientation.

If you are a person of color struggling to increase your credit score, you may be entitled to recovery! Contact us by filling out the form or calling (877) 674-0886 to schedule a free consultation!

How We Can Help