That's the point. If the prediction is accurate, that's net beneficial: irresponsible people will get fewer loans, and responsible people will get more loans.

That's the point. If the prediction is accurate, that's net beneficial: irresponsible people will get fewer loans, and responsible people will get more loans. It sounds like you haven't quite decided whether this would be less accurate than FICO (maybe! But there's no reason to be outraged that some random person's prejudice is costing them money) or more accurate than FICO (in which case your argument seems to be "Yes, this kind of prejudice is accurate--or, at least, more accurate than the alternative. But that makes me feel bad, so misallocate capital and make more bad loans.") The world economy just went through a couple very bad years caused by making wishful-thinking loans instead of unpleasant-truth loans. I hope that doesn't have to happen again.