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FICO scores rate FICTITIOUS late payments

Sunday, May 25, 2008

FTC to check into Fair Isaac’s fictitious late payments?

A reader contacted me after an FTC attorney actually CALLED him in response to his complaint about Capital One charge-off notations being misinterpreted as late payments by Fair Isaac’s credit scoring formula.  The reader asked whether he could provide my contact info to the FTC and of course I’ll be THRILLED to see some action.

Here is the link with the screenshots of the myFICO fictitious lates:

http://creditlegislation.org/activists/forum11/19.html

I have never been able to get to anyone willing to investigate anything at the FTC, not even after I sued it in 2003.  So I’m not holding my breath, but it sure would be cool to see regulatory action against Fair Isaac.

After all, artificially low credit scores are a major contributor to the subprime crisis as GOOD PEOPLE were forced into high rate mortgages due to minimum FICO score requirements for just about all mortgages.

Artificially HIGH scores caused the credit crisis as unqualified people received credit (mortgage, auto and credit cards) who would NOT have been approved based on traditional common sense underwriting.

Credit scoring doesn’t predict defaults, it CAUSES defaults.

The proof is in the pudding, the daily news about delinquencies and defaults.  The banks relied on “predictive” credit scores.  As long-time readers know, I’ve been submitting my comments about the obvious defects in credit scores to the regulators since 2004!

Credit scoring wasn’t the only reason for the credit crisis, but it was a substantial contributing factor.

Thursday, November 29, 2007

I notified Fair Isaac of my intent to publish and requested notice of any inaccuracies

At first I couldn’t post and as I checked other threads, I realized how much misinformation there really is.  Fair Isaac is trying HARD to get their readers to pay collections.

Finally I was able to post, apparently somebody had been messing with the permissions:

It’s not a bad dream, FICO scoring is a nightmare and I’d LOVE to wake up!

However, not only am I awake, but I’ve been analyzing FICO scores since they became mandatory for mortgages in the mid 90s.

The documentation is posted at http://creditlegislation.org/activists/forum11/19.html

There’s the screenshot of the report and I even added the detailed explanation.  The DOCUMENTATION proves that there’s a serious PROBLEM with late payments MADE UP by Fair Isaac’s scoring software, late payments that are NOT reported by the CRA.

Apparently the posters here think it’s FUNNY that millions of people were forced into subprime mortgages and are now losing their homes, families and some even their lives—because of FICO scoring “bugs.”

Barry, if there’s ANYTHING at all that’s not accurate in my posting here or at my site, PLEASE let my know exactly what that is.

Since the fictitious late payment “bug” has NOT been fixed as I continue to see myFICO reports with those fictitious late payments, I can only assume that it is actually a bug by design, not just incompetence.

I’m going to send out a press release about the fictitious late payments and I’ll forward it to members of the House Financial Services Committee.  Also, I’m writing a book about credit, scoring, banking, the real reasons for the subprime crisis, etc.

So please advise if there are ANY inaccuracies whatsoever.

Thank you!

Christine

One of the posters in that thread wondered why my forums are closed and I’m the only person posting.  There’s no better explanation than the posts at the myFICO forum: the complete absence of intelligence.

Not one person at the myFICO forum can read a myFICO report and see that they made up the late payments.

Scary, very scary.  I think my clients all got it and they’re “average” people, not trained to look at credit reports.