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Fair Isaac - credit scoring fraudware

Saturday, November 29, 2008

Experian refuses to provided the scheduled deletion date

A client disputed two accouts, they investigate one and ignored the other.  He asked when the charge-off would be deleted.  The account was not mentioned in the investigation results and there still isn’t a deletion date on the report.

At least 20% of Experian chargeoffs don’t have a deletion date.  Experian OFTEN reages accounts to delete 7 years after the charge-off was sold instead of 7 years after the account was charged off (or sooner, depending on the date of first permanent delinquency.)

And, Fair Isaac STILL creates entirely fictitious lates on the myFICO reports.  It is truly incredible that FICO scores are based on formulas developed by the world’s most INCOMPETENT programmers.

I can only try to make them irrelevant, I’ve given up fighting for justice.  The new Trado site is slowly coming along, got lots to learn about Drupal.

Wednesday, November 19, 2008

FICO score increased 6 points after deletion of 2 collections, 12 points after using old account

The ONLY two old collections were deleted.  The Equifax FICO score increased from 666 to 672.

Disappointed client.  There would have been a larger increase if we didn’t have the 76% B/L ratio.

A few days later a $77 balance showed on his JC Penney card and the score went to 684. 

That’s a 12 point gain, TWICE the 6 point gain for the deletion of the 2 collections.

And once he paid the account and the $0 balance is reported, he might get a few more points because he’ll have fewer accounts with balances.

When I reviewed the reports, I couldn’t tell whether the JCP account was still open.  The DLA was in 2000.  The client also didn’t know whether the account was open, didn’t have the card anymore.  He called and they immediately sent a new card.

Compare the effort people put in getting collections deleted with how easy it is to make a quick phone call and then go shopping.

Of course a RECENTLY ASSIGNED collection can lower the scores by over 70 points, even if the collection is 6 years old.  It all depends on the specific reporting of collections and WHAT ELSE is on the report.

That’s why I really can’t give advice without reviewing the reports and that takes anywhere from 3 to 6 hours, depending on the number of accounts and especially derogatories.

What reason do we have to put up with this absurd system, designed explicitly to exploit people who are NOT wealthy?

Last night I posted about the new Trado and then contemplated ways to eliminate Dollar debts owed to banks by refinancing Dollar debts with Trados.

These aren’t easy concepts for people who never looked into alternative currencies and how the banks create Dollars.  But it’s a LOT easier to understand than trying to figure out why you deserve lower interest rates and insurance premiums because you just went shopping a JCP.

Soon we won’t need the commercial banks, credit bureaus and credit scores.

They destroyed the global economy and it’s up to us to do whatever it takes to survive.  Only corporations are being bailed out.

The banks, insurance companies and credit bureaus can focus an screwing each other and making billion dollar loans to failing corporations and governments by creating trillions of dollars until the dollar is worthless.

We don’t have to be part of the failing system.

Saturday, October 11, 2008

Lenders agree: FICO scores caused the credit crisis

From a Business Week article from February:

Credit Scores: Not-So-Magic Numbers

The once-vaunted FICO credit scoring system is now being blamed for failing to flag risky home-loan borrowers. Will an overhaul be enough to appease angry lenders?
by Dean Foust and Aaron Pressman

...

Now the credit markets are in disarray, and big mortgage players like HSBC (HBC), JPMorgan Chase (JPM), and Washington Mutual (WM) —perhaps opportunistically—are laying much of the blame at Fair Isaac’s feet, arguing that its score didn’t predict delinquencies as expected. (Meredith Whitney, an analyst at CIBC World Markets, called FICO scores “virtually meaningless” in a December note to clients.) Consumer advocates and state regulators are clamoring for Fair Isaac to disclose its formula. And credit-card providers are beginning to question the score, too. “So many people, I think incorrectly, looked at FICO as being the’ measure of risk,” Discover Financial Services (DFS) Chief Executive David W. Nelms told analysts in December.

Fair Isaac vigorously defends its product. “We don’t think FICO scores have caused or contributed to the subprime mortgage problem,” says CEO Mark N. Greene, a 12-year IBM (IBM) veteran who took the helm at Fair Isaac last February as its problems were becoming apparent. [emphasis added]
...

This must be the article a reader once mentioned in email, but I never had the link.  Are there any updates? 

I really hope the banks will sue Fair Isaac out of business. 

There’s a lot about “credit doctors” in the article. It’s amazing how so many credit repair people engage in illegal activities.  Apparently I’m still the only person who can analyze score factors and make recommendations to LEGALLY improve the scores.

I also seem to be the only person who documented that FICO 08 is nothing but a lot of hype and that Authorized User accounts are NOT ignored as Fair Isaac claims. 

Maybe Fair Isaac hadn’t figured out yet that AU accounts are STILL rated for account history.  It wouldn’t be the first time that I’ve documented a FICO scoring “bug.”

Fair Isaac programmers can’t even get the correct field labels on the myFICO reports!  And that’s first year programming.

Please post or email any articles on possible legal action against Fair Isaac by the banks.  FICO scores aren’t the only cause of the credit crisis, but they are a MAJOR cause. 

Isn’t it too bad the regulators and legislators ignored and CONTINUE to ignore my research?

Nobody can claim that I didn’t try to prevent the credit crisis. I’ve done all I could do, I’ve given all I had. 

EVERYBODY ignored me.

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!