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Fair Isaac - credit scoring fraudware

Friday, October 10, 2008

HORRIBLE article on credit scores by the CORRUPT National Consumer Law Center

This article was reposted at another one of those cream skimming consumer lawyers blogs at http://www.creditlawnetwork.com/understanding-credit-scores-improving-credit-scores:

What can consumers do to improve credit scores?

Credit scoring models are complex and often vary among creditors and for different types of credit.  Only the creditor can explain what might improve a score under the particular model used to evaluate a credit application.

Scoring models generally evaluate the following types of information:

Payment history. It is likely that a score will be affected negatively for late payments, accounts referred to collections, or bankruptcies.

Amount of outstanding debt. Many scoring models evaluate the amount of debt compared to credit limits.  Debt amounts that are close to the credit limit will likely have a negative effect on a score. [WRONG, WRONG, WRONG!!! Even a 30% ratio is often a MAJOR negative FICO score factor.]

Length of credit history. Generally, scoring models give more points the longer a customer’s credit track record it.  An insufficient credit history may have an effect on a score, but that can be offset by other factors, such as timely payments and low balances.  [WRONG, WRONG, WRONG!!! Absolutely nothing can help with FICO scores like an OLD account.  And that includes AUTHORIZED USER accounts, despite Fair Isaac’s lies about AU accounts no longer being rated.]

Recent applications for credit. Many scoring models consider whether a consumer has applied for credit recently by looking at “inquiries” on the credit report.  A lot of inquiries can negatively affect a score.  However, not all inquiries are counted.  Inquiries by creditors who are monitoring an account or looking at credit reports to make “prescreened” credit offers are not counted.  Credit inquiries made by consumers of their own credit records aren’t included either.  Some creditors and credit bureaus claim that they do not even consider inquiries.  Others claim that a lot of inquiries will have only a small impact on a score. [WRONG, WRONG, WRONG!!! In fact, many inquiries NOT related at all to credit applications such as opening a bank account, cell phone, utility, car rental, apartment rental, etc. are all rated by FICO scores and which creditor does NOT use some version of FICO scores? NAMES please!]

Number and types of credit accounts. Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on a score.  In addition, many models consider the type of credit accounts and give more points to what they consider a healthy “mix.” Under some scoring models, loans from finance companies may negatively affect a credit score.

Scoring models may be based on more than just information in a credit report.  For example, the model may consider information from a credit application as well as information about jobs or occupations, length of employment, and homeownership.

To improve a credit score under most models, it is best to concentrate on paying bills on time, paying down outstanding balances, and not taking on new debt.  It’s likely to take some time to improve a score significantly.  Errors involving negative information should be disputed.  (See NCLC Consumer Guide, “What You Should Know About Your Credit Report.”)

*Reprinted with permission from National Consumer Law Center, Fair Credit Reporting, “Understanding Credit Scores” (6th ed. 2006).

The NCLC and these corrupt lawyers act as direct extension of Fair Isaac, the credit bureaus and the creditors (Chase and Citi) who you can thank for the credit crisis.

I still recommend the NCLC law books on credit and collection litigation, but they are clearly on the OTHER side.

There is no credit lawyer who is not aware of my research and doesn’t know that credit scoring and reporting is a total fraud.  However, in order to protect their “working relationships” with the credit bureaus and creditor lawyers, they HAVE to spew this garbage.

This law blog features many lawyer posts with nothing but misinformation.

They don’t approve my comments and recently disabled comments.  They’re the mouthpiece of the powers who run the show, the lawyers are dutifully doing their job, posting propaganda to keep the people from finding out what’s REALLY going on.

Never once have I seen posts at this blog documenting the credit bureaus’ refusals to correct, anything negative about credit reporting and scoring or anything requiring more intelligence than reposting of the official propaganda.

As regular readers know, I documented FICO scoring bugs including the entirely FICTITIOUS late payments added by Fair Isaac.

It’s really too bad that so few people care about exposing the corruption of the credit system.

If you’re interested in more info on the collapsing system and proposed solutions, please check my new site on the Credit Crisis.

Wednesday, September 17, 2008

Pelosi and the Democrats GUILTY of CAUSING the economic crisis

Pelosi: Dems bear no responsibility for economic crisis
By Klaus Marre
Posted: 09/16/08 04:14 PM [ET]

House Speaker Nancy Pelosi, when asked Tuesday whether Democrats bear some of the responsibility regarding the current crisis on Wall Street, had a one-word answer: “No.”

Pelosi (D-Calif.) ripped President Bush’s “mismanagement” of the economy and a lack of regulation that led to the current situation.

“I think the American people have had it with this situation where the middle-income people in our country are not protected from the ramifications of the risk-taking and the greed of these financial institutions,” Pelosi told MSNBC.

When asked whether the Democrats “deserve some responsibility” regarding the economic crisis, Pelosi responded: “No.”

“John McCain said that this is a result of overregulation by the Democrats in Congress,” she added. “Either he doesn’t know what he’s talking about or he’s misrepresenting the facts as he knows them. But it’s simply not true.”

Republicans responded quickly, pointing out that a Congress led by Democrats had not helped the economy.

“The Pelosi-Obama Congress has failed to pass an all-of-the-above energy plan, failed to stop earmarks, and failed to break the partisan gridlock that plagues Washington,” RNC spokesman Alex Conant said. “If Pelosi thinks the Democratic Congress is doing a good job handling the economy now, then just imagine how bad our economy would be if Democrats controlled the White House, too.”

I hope that Cindy Sheehan will beat Pelosi in San Francisco.

I DESPISE Pelosi and the rest of the Democratic lying SCUM.

One notable exception is Dennis Kucinich.  He just delivered well over a million signatures to impeach Bush. Of course impeachment is blocked by TRAITOR Pelosi.

The Democratic leadership so sold out.  They are so incredibly corrupt.  I have more respect for the neocons who at least honestly state that they are FOR business and AGAINST consumer rights.

I’m still hoping that one day somebody will disagree with me and get one of those elected thugs to make a statement on credit reporting and collection issues. 

What do they have to say about Fair Isaac CREATING entirely fictitious late payments to artificially lower FICO scores and force GOOD people into BAD loans?

2/26/07: Open Letter to Fair Isaac Regarding its Addition of FICTITIOUS Derogatory Data to Credit Reports and Sale of Defective myFICO Reports

I didn’t get a response from Fair Isaac’s Barry Paperno or anyone else.

Needless to say, FICO scores and incorrect credit reporting are a MAJOR cause of the credit crisis. 

This is all so depressing, but I promise my NEXT post will be very FUNNY!

Thursday, August 14, 2008

FICO 08 - Trans Union Authorized User account apparently NOT ignored

Funny how it goes, is ANYTHING Fair Isaac says ever true?

I have a client with a very thin file, only two unrated student loans on TU and a few collections (reported as such.)

FINALLY an AU account was reported and according to the score factors, the account history for the AU account was rated.

You have a short credit history

Your oldest account was opened 2 years ago.
Average age of your accounts 1 years

WITHOUT the AU account:

You have a short credit history

Your oldest account was opened 9 Months ago.
Average age of your accounts 9 Months

The student loans still counted for the history although reported as “unrated or bankruptcy”.

Those very thin files are extremely helpful with determining what goes into the FICO scores.

I suppose the AU account won’t be rated for the B/L ratio, we’ll hopefully see that once we have a balance, it’s $0 right now.

There is some strangeness with the other factors too and hopefully I’ll have time to post more about that soon.  I’d like to start a new blog just on FICO scores, I see so many interesting factors, but here the posts get lost.  I need more space, categories, and a few more hours in my day.

Sunday, June 08, 2008

Will FTC attorney Brinckerhoff look into Fair Isaac FICTITIOUS Equifax lates?

A few weeks ago a reader had complained to the FTC about Capital One reporting an account as charged off and lowering the FICO credit scores.  I then pointed out that it’s perfectly legal to report an account as charged off, but that Fair Isaac adds fictitious Equifax lates, destroying the scores if the account was charged off years ago, but recently reported as charged off. 

Of course I provided the link to the screenshot and my explanation at 5/4/07 - FICO scores add FICTITOUS Equifax late payments long after charge-off

It turned out that’s exactly what happened and the reader then wrote:

Christine, I just spoke to Clarke W. Brinckerhoff of the FTC. I had sent him an email concerning the habit of Capital One posting a CO every single month for charged off accounts and how FICO scores are damaged as a result. This thought came about after I read your post about FICO’s counting fictitious deletes.

He needs to see some of your evidence of the errors in FICO’s algorithm. Would you mind if I send him your email address so he may contact you regarding this issue?

Of course I agreed and I posted at FTC to check into Fair Isaac’s fictitious late payments?

And of course I was NOT contacted by Brinckerhoff.

Brinckerhoff has been with the FTC for at least 10 years.  I just read his 1998 opinion letter stating that the IRS has no permissible purpose to obtain a consumer credit report.  “In the absence of any such “credit” relationship between the judgment holder and the spouse, we do not believe the same permissible purpose exists.” Good opinion, but not binding:

FTC Staff Opinion Letter: Fair Credit Reporting Act Section 604(a)(3)(A)

It sure looks like Brinckerhoff is very qualified and has a very thorough understanding of the FCRA.  While FICO credit scoring has nothing to do with the FCRA, the myFICO Equifax reports containing INCORRECT data (the recent lates) is definitely a FCRA violation. 

Additionally, the FTC certainly CAN take action if it feels that the plight of many millions of Americans due to artificially low FICO scores is more important than more gravy for the bankers, Fair Isaac and the credit bureaus.

Since word on the street is that the Bush administration shut up the FTC attorneys (no more opinion letters), Brinckerhoff may have been ordered to drop the issue.

A couple things are very odd about the reader who initially contacted me about Brinckerhoff:

1) Why did this reader not provide HIS Equifax myFICO reports to Brinckerhoff?

2) Why did this reader then ask another person to contact me with an extremely long sob story, claiming NOT to be looking for free credit advice, but wanting to “help me” with my fight by providing me with her information about her Experian report. 

I will never be able to understand how people can be so incredibly stupid.

Not only are the Experian fictitious lates NOT scored, but I really don’t need any more evidence. 

This isn’t “my” fight, it’s YOUR fight!!!

Provide YOUR evidence not to ME, but to the FTC.

I admit that I made the mistake of fighting your fight FOR you for many years, but I’m finally DONE wasting MY time and money on YOUR problems. 

Last month 7 readers donated $300 in response to my plea for financial help as I am about as broke as it gets.  Most of the donations are from long-time readers.  Aside from the lack of financial support, NOBODY has published their own research and documentation about credit reporting and scoring.

NOBODY.

ABSOLUTELY NOBODY.

Christine Baker is the only person with half a brain NOT working for the bankers?

It is incomprehensible that I’m the only person capable of analyzing a credit report and FICO scores who is not corrupt.  Even though I’ve published and idiot proofed this specific issue of the Equifax fictitious myFICO lates, NOBODY has done anything about it.  What’s REALLY going on here?

Now I question the legitimacy of this entire email exchange regarding Brinckerhoff.  Quite likely someone who knows that I’m struggling to get by decided to waste more of my precious time and cause some more aggravation and frustration.  Job well done!

Side note:  Don’t try to buy a house when you have NO money, you will be homeless if you don’t close in a few weeks and you’re at the brink of divorce. 

Are these sucker buyers on crack?

I’m talking about people wanting to buy in Southern California where prices are collapsing.  They have a 95%+ chance of losing the house in foreclosure AND get divorced.  There are many people who end up in bad situations for all kinds of reasons, but some of these people are so ignorant they should have guardians. 

I wouldn’t have written this post if I didn’t have a CreditFactors subscriber who just posted that she also has the Equifax fictitious lates and maybe she will provide her reports to Brinckerhoff and if nothing else, document that the FTC KNOWS that Fair Isaac is deliberately lowering the scores and is a substantial contributor to the credit crisis.

Everybody with these fictitious lates should contact Brinckerhoff until he takes action.  After all, not only did Fair Isaac destroy the Equifax scores of millions of consumers with old chargeoffs, but no doubt, many were forced into subprime mortgages due to the artificially low Equifax FICO scores and lost their homes and CONTINUE to lose their homes because they can’t refi due to the artificially low Equifax scores.

Isn’t it about time to STOP Fair Isaac’s massacre?

Millions of home owners could refinance with the LOWEST rates if they got the scores they deserve.  Unfortunately, most think that their scores are low due to old chargeoffs and they don’t realize that with CORRECT reporting their FICO scores would qualify for the lowest fixed rates.

So if YOU would like to make a difference for all, call FTC staff attorney Brinckerhoff, the number on his last opinion in 2000 is 202-326-3224.  You should provide him with your login for the myFICO report so that he can see the reporting and score factors.

Your report should NOT have other recent lates and hopefully your report will contain the score factor stating that you were RECENTLY late, 0 months ago, 1 month ago and or whenever the creditor causing the fictitious late(s) last reported the chargeoff.

Please post here what happens and we’ll take it from there.

Sunday, June 01, 2008

Suing Fair Isaac

A CreditFactors subscriber has been asking about disputing the information on the myFICO reports with Fair Isaac, suing Fair Isaac and causes of action.  Since often readers ask about litigation regarding Fair Isaac, I thought I’d share my posting:

Give me $100,000 and I’ll sue Fair Isaac and CRAs for all kinds of violations. About $90,000 will go to depositions of Fair Isaac and the CRAs and the rest goes to pay for legal research, filing fees etc. and I’ll pay myself $5/hr for my work on it.

If you want to argue that they produce their own reports, sure, give it a try. But don’t waste your time if you don’t have the money. There is a reason why I’m giving up ...

“"They" is in reference to myFico.”

There is no law preventing you from disputing with them. But I really can’t afford to spend 20 hours on researching the basic issue right now, there’s been quite a bit of litigation and then the changes with the FACT Act. But if anyone is willing to pay for it, I’ll do it. $5/hr + research fees and I’ll post it all for the enjoyment of all who want to read it.

If you’re really into these issues, get a PACER account and subscribe to fastcase.com (24 hours free) and be prepared to spend a few thousand hours reading. Try it and you’ll see what you get out of it.

So that’s my recommendation to all of you who think that there’s a problem with credit reporting and scoring.  Plan on spending many thousands of hours on research and filings and at minimum $100,000 on litigation.

As you can see by the whopping $300 in donations I received in May, it won’t be me doing the litigating.