The Massachusetts Attorney General settled allegations against student loan lender Earnest Operations LLC for practices that violated various state and federal consumer protection and fair lending laws, including the use of artificial intelligence (AI) underwriting models that could lead to disparate outcomes for Black, Hispanic, and non-citizen loan applicants and borrowers. The lender has agreed to pay $2.5 million and reform its lending practices by adopting governance and other compliance measures to ensure its algorithmic and other underwriting practices comply with anti-discrimination, consumer protection and fair lending laws.
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Massachusetts AG Settles AI Fair Lending Allegations Against Student Loan Lender
