Anidjar and Mizrahi-Borohovitch, ‘“Let’s Join Forces”: Promoting Privacy and Fairness for Credit Consumers Through Different Branches of Law under the Structure of the Regulatory State’

ABSTRACT
This article is devoted to exploring the benefits and risks involved in the credit information sharing system by proposing a novel approach to the design of the legal regimes regulating the permissible collecting, scoring and use of personal information by financial institutions and credit bureaus in the era of big data. Specifically, we suggest that current regulation of credit information sharing market should be redesigned to reflect our reconceptualization of the Individuals, markets and state’s roles in establishing fair and efficient credit markets in the United States and Europe. Furthermore, we introduce a contextual methodology to the design of desirable practices in this industry which is grounded on three interrelated considerations: The identity of the credit consumer including his personal and socio-economic background, the purpose for which the consumer asks for credit provided by the lender, and the complexity of a given credit transaction. Finally, we propose an original concept for advancing cooperation between different regulatory agencies which we term as an ‘optimal equilibrium synergy of regulatory networks’. In our view, in the age of regulatory authorities’ diffuse, an optimal synergy will be achieved only after a relative effectiveness study of ex-ante and ex-post regulatory powers related to credit consumers’ protections carried out through different branches of law.

Anidjar, Leon Yehuda and Mizrahi, Inbar, ‘Let’s Join Forces’: Promoting Privacy and Fairness for Credit Consumers Through Different Branches of Law under the Structure of the Regulatory State (January 31, 2019).

First posted 2019-02-05 17:54:27

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