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It's no secret that Black people in the US have faced centuries of discrimination in all facets of life. From fighting for and establishing our humanity, education, medical racism, redlining, police brutality and more, the issues Black Americans face run the gamut.
Now, a new report is confirming yet another form of discrimination that is disproportionately impacting Black neighborhoods.
According to an October report by the Consumer Financial Protection Bureau (CFPB), people living in predominately Black or Hispanic neighborhoods are more likely to have active disputes of inaccurate information on their credit reports. This not only impacts Black homeownership –– as credit scores are typically used in the lending process –– but also for housing overall. Many rental properties use a person's credit score as part of their application for a lease. With more disputes and increased likelihood of inaccurate information, it leaves many Black and Hispanic people with limited to no options.
Credit scores are sometimes used in employment applications, too, making the accuracy of credit report essential for consumer watchdog organizations like the CFPB)
"Families living in majority Black and Hispanic neighborhoods are far more likely to have disputes of inaccurate information appear in their credit reports," CFPB Director Rohit Chopra told Bloomberg in a statement. "Error-ridden credit reports are far too prevalent and may be undermining an equitable recovery."
The housing crisis exacerbated by the Covid-19 pandemic economic fallout burdened Black families at disproportionate rates. When the federal eviction moratorium ended, it was Black families and other families of color who faced layers of discrimination in securing housing and relief.
Experts say that more questions need to be answered regarding how these patterns are formed among Black and young and low-credit borrowers, particularly if it's certain protocols from credit institutions that's leading to the disparity.
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