In a report to Congress that’s certain to generate controversy, a new Federal Reserve study concedes credit scores vary “substantially” among different racial and ethnic groups.

“Lawmakers ordered the study because critics have long charged that credit scores are biased against African-Americans, Hispanics and other minorities.

But after a massive, multi-year review of three different credit-scoring systems - including one the Fed’s own economists created - researchers concluded that: Credit scores are highly accurate in predicting future payment performance.

Credit-rating systems aren’t inherently biased, although African-Americans and Hispanics do have lower average scores than non-Hispanic whites and Asians.”

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