Thanks for laying this out and I agree with you 100%. Associative scroing is no different than redlining – painting people with the same brush which is discriminatory. For most people, credit isn’t a convenience, it’s a necessity and should be granted and managed based on their behavior. 

This is, obviously, a really difficult issue, though. Actuaries in life and health companies routinely evaluate people based on their classification a priori, but given the nature of insurance, that is all they can do. So there is a line between evaluating and discriminating, but it’s easy to cross. I’d suggest the common sense rule – does anyone believe this above incident is fair? I doubt it.
-NR