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Old 08-12-2012, 12:11 AM
tzs29970 tzs29970 is offline
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Join Date: Apr 2012
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Default Telling the customer why he was denied credit

In lecture 10, the problem of how to satisfy the legal requirement of telling a credit applicant why he was denied was mentioned, since the customer and the law won't be satisfied with a statement that some parameter in some learning algorithm failed to meet a threshold.

I wonder if the bank could come up with a denial reason by fiddling the application data to find out what could be changed to make it pass. For instance, the bank could try raising the income on the application and if that turns it into an acceptance, report to the customer that he was denied for inadequate income.

Best, I think, would be for the bank to fiddle several factors, and then pick the one that requires the least change to reverse the outcome, and report that to the customer.
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