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.
Credit crisis deliberately caused by the regulators • 2003 Suit (appealed, Experian filed credit reports on PACER) • Fair Isaac - credit scoring fraudware • FICO scores rate FICTITIOUS late payments • Legal • Regulators - legislators • (1) Comments • Permalink
