yes, definitely not fair. I have posted before, write your congressman. This is being looked at closely by many states right now. Go to google, type in "write congressman" and it will give you a site where you can express your views. Public pressure helps!!
At SAFEWAY grocery store they give gas @ $0.05 less for "CARD" holders...the card is free, but if you don't have one, you pay more. ...So, you put your "F.I.C.O. LINK CARD" INTO THE READER, and the car price is $40,000 because you have "ROTTEN" F.I.C.O. THE NEXT CUSTOMER has great F.I.C.O. so he pays $20,000... The grocery store charges you $50.00 more because you have rotten F.I.C.O. INSURANCE COMPANIES DO IT ALL THE TIME...(they got in trouble for RED LINING)...but F.I.C.O. pricing is supposedly legal...
I still stick with my two original theses: 1) Current credit scoring methods are incredibly flawed and need serious revising. Many good suggestions for improvement have been revealed in this thread. 2) Even the current terribly-flawed credit scoring methods are superior to the incredible injustices previously perpetrated by money lenders related to race, gender, and other personal characteristics (health, sexual orientation, religion, and other items that were dutifully noted by bank loan officers throughout much of the 20th century prior to the FCRA's debut in 1970). Doc
"Skeptics of risk-based pricing and credit scoring argue that the experience from which these predictive models are based may not be sufficiently diverse to reflect the favorable performance of loans to minorities, and that the variables used in these models may put minorities at an unfair disadvantage." - HUD http://www.hud.gov/library/bookshelf18/pressrel/newsconf/expand.html what we know about mortgage lending discrimination in america http://www.hud.gov/library/bookshelf18/pressrel/newsconf/menu.html "Our enforcement efforts in the area of credit scoring have not yet focused on disparate impact issues, but rather on the misuse of credit scoring systems." - DOJ http://www.usdoj.gov/crt/housing/bll_01.htm "Properly developed and implemented automated systems have the potential to reduce or eliminate disparate treatment discrimination, but do not necessarily address disparate impact discrimination." http://www.fanniemaefoundation.org/programs/jhr/pdf/jhr_1102_bogdon.pdf Search for "disparate impact," the inside-the-beltway term that refers to how credit scoring, itself, could be, inherently, racially discriminatory. That's amusing, but still, the data are so secret, there can be little analyis.
I also don't totally disagree with scoring - I just disagree with the use of scores for certain things - renting an apartment for instance. If a person has an excellent history of paying rent on time over several years of a lease(s) then a credit card payment showing some lates over the same period of time should have no bearing on consideration of their ability to make timely payments at a new place. I also think that to score a paid charge off or collection account exactly the same is ludicrous. Everyone has an occasional problem, some creditors are quick to charge off accounts or send them to collections and the person who immediately makes payment on these accounts when able should not have to suffer scorewise.
Yes and 1 of the flaws is that FICO is used as a pricing method rather than an indictor of credit worth. Another serious flaw is scores are determined from information that is 70% inaccurate. The Credit industry knew this,so fico was developed as a way to take advantage of these errors. There is no real credit score only the FICO pricing system!!
Absolutely not. I have also experienced this with auto insurance - low score - higher premiums - even with no points, no accidents etc. I'm sure it also extends out to other things such as Auto loans as a previous post indicated.
================================= Oh Really! What's superior about replacing these injustices with the FICO Pricing System that screws everybody including these folks? The credit laws are what impacted the injustices - Not FICO. FICO is not a credit scoring method. IT IS A Pricing System! Or more accurately a price gouging system! ================================
FICO is a scam. You don't place restrictions or conditions on it to try to fix a scam. You fix it by outlawing it. I don't see how anyone can read the post on this board and not realize that FICO is a rip of. Just look at the people on here who have been or are getting shafted by FICO. No doubt there are tens of thousands of others we don't know about that do not post on this board.
Mist, if lbrown59 is quoting PIRG, then he's misused that statistic horribly. PIRG asserted that 70% of all consumer credit files have at least one error. Those errors included simple mispellings, mistyped addresses, and other relatively inconsequential errors, in addition to the consequential ones. PIRG didn't differentiate. That said, just because 70% of reports may have at least one error doesn't mean that 70% of everything in everyone's credit files are inaccurate -- which is what lbrown59 is trying to assert here (without much success, LOL). That's NOT what PIRG was saying. Doc
