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Fair Isaac - credit scoring fraudware

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.

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.

Friday, May 09, 2008

Reader mail: the various FICO scores and offer to help

Hi Christine,

I am writing you to offer my assistance in any way, shape, or form that you may need. You helped my sister with her credit reporting problems last year. She now has a better credit score than I do and she has a bankruptcy on her report, as opposed to me and my husband who have never missed a payment on any of our stuff. Unreal.

I came to you by way of her. I got really angry this week when I paid MyFico.com to get all three of my husband’s scores and two of mine, only to find out that the banks get a totally different score. My sister’s reply to me was, “Told you so.” We still got our new mortgage, but we actually weren’t looking for one.

We got denied a Home Equity loan by our bank of 7 years, with whom we’ve had various loans, paid on time, sometimes early. We were dumbfounded when they said my husband’s credit score was too low.

Long story short… I’m sick of these agencies screwing over the average consumer while the banks line their filthy pockets.

Let me know if there’s anything I can do to help you.... ie: research, typing something up for you, etc.... I don’t work, so I’m home all day.

Thanks,

...

It sure is nice to get a mail from someone who doesn’t just WANT something, but is offering help.

First, regarding the FICO scores, I just recently explained why scores are different at Trans Union FICO 08—apparently not bad for people with unpaid collections and chargeoffs.

Regarding help, the very first thing I’d like everybody to do is to watch the 3.5 hour documentary The Money Masters, the animation Money as Debt, Frontline documentary Secret History of the Credit Card and if you’ve got the stomach for it, watch some of Alex Jones’ films—they’re all FREE and linked at my new Resistance forum.

You might end up feeling depressed, angry or powerless.  However, I’m not trying to ruin your day, but I’m hoping that people will realize that they ought to have a plan B, C, D and E.  Nobody knows what’s going to happen, the possibilities are endless.  But I certainly wouldn’t do NOTHING and expect to get a social security check in 10 years.

So when it comes to how to help, it’s important to understand that we do NOT have the power to CHANGE this corrupt system NOW.  But we may have the opportunity to do things “our” way, whatever that means, in a few years. 

That’s why it’s important to document what does NOT work, such as FICO scores and corporate credit bureaus.

There IS the need for credit reports, but they ought to be accurate and consumers must have the right to challenge the information.

The current requirement for collectors to report a collection as disputed after the consumer disputed and prior to validation is such a typical example of a SHAM.  The dispute notice is ignored by FICO scores entirely. 

What is the POINT of requiring the notice of dispute to the credit bureaus?

It’s to pacify clueless legislators and consumers.

And to add insult to injury, PAYING collections reported as such won’t increase the scores either.

You are SCREWED and the bankers and insurers can charge you much more for years to come. And that’s THE purpose of credit reporting and scoring as it is now.

One reason for my litigation is to DOCUMENT how corrupt the judicial system is.

While we can’t change the judicial system, but we CAN start a new financial system.

SIGN UP for the Common Good Bank - it’s free and only takes a minute.

There are many people fed up with the corruption and corporate exploitation, they need your support.

I’m so tempted to start a complementary currency, just wish I had more time to research the Chiemgauer, the Credito and other complementary currencies.

Was in Kingman today, filled up my Bronco and had my final stop on the way home at the propane place.  That’s where I noticed the fuel leak.  It’s not a fuel line, but somewhere at the top of the tank where I couldn’t see it.  It seems to leak about a gallon an hour, got a tub under it now, at $3.50 a gallon I’m trying to save every drop.

I’m just glad I made it home ok, with 4 leaking gas cans (the new SAFE plastic containers that ALWAYS leak when you drive through a pot hole or around a corner), 3 propane tanks and the fuel leak ...

Fortunately, I had to have the fuel pumps replaced last summer, so the tank should be easy to take out.  But it’s just another headache and who knows how many hours and $$$ it’ll take to get it fixed.  I better order the service manual right now.