So I’m watching the news the other day and the story was about how banks are going to start using Facebook as a way to approve or deny clients for loans…by their Facebook friends.
Apparently banks are going to look at your “friends list” and make the decision to approve you based on the list. The rationale is that people tend to hang out with people who are like themselves, so if you hang around people that pay their bills, you will get approved. However, if you hang out with people who are frequently delinquent, you most likely won’t get approved. What the heck? Last time I checked, an application was based on the individual’s credit score and payment history, not their neighbor’s.
Does that mean they are going to run a credit check on all my friends?
Or is this a nice way of stating: “racial profiling is in full effect at our bank…”
How crazy is that?