Back in July, Facebook debuted a mobile payments feature that lets Facebook users send and receive money to and from their friends using the Facebook Messenger app. But now your friends could be the reason you get denied for a loan, thanks to an interesting patent from Facebook.
Imagine applying for a loan. Now imagine that the first thing the bank does is find out the collective credit score of your Facebook friends. Now guess what? The collective score wasn't high enough, you've been denied and your application is rejected. The newly-approved patent could make this scenario a very real possibility.
It sounds very worrisome, yes, but Greg McBride, chief financial analyst for Bankrate.com, told CNN Money that this could only "potentially" affect those whose credit is "borderline to begin with." He said those with good credit don't need to worry.
After all, the Equal Credit Opportunity Act has rules and criteria set in place that creditors have to use when determining who gets a loan. These are things like income, credit history, expenses, debts and so on.
Aside from that, the new technology is being promoted within the patent itself as a spam blocker and filter for offensive content first, will be used to improve search functionality secondly, a content provider third, and lastly, will turn your service provider into a lender. Click here to read the patent for yourself.
Facebook is yet to issue any statements, so it's unclear exactly how Facebook plans to use the technology. All we know right now is that it's been officially patented.
However the patent leaves some unanswered questions. How will we know these credit reports will be secure? How will the technology weigh the credit of your best friend versus a friend you haven't seen since fifth grade? What about being penalized for medical debt?
As answers come, we here at Komando.com will keep you updated on Komando.com's Happening Now page with everything you'll need to know.