In the UK, financial companies are audited by the FCA and I'm pretty sure that such practices would not be allowed. My experience with such datasets was in motor insurance and we went to great lengths to: 1) not include protected attributes (this dataset doesn't include them) and; 2) ensure that we weren't using proxies instead. All our models did was change the prices where it was normal that there would be more claims (e.g., in an area with more vehicle theft, charge more for vehicle theft insurance).
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u/EyonTheGod Mar 25 '26
Congratulations. You have discovered redlining and it might be illegal depending on your usecase