Established Contributor
Posts: 513
Registered: ‎04-03-2007
Re: Community feedback about Experian's decision to discontinue offering FICO scores on myFICO

wilee wrote:
Time for government intervention. Until the federal government REQUIRES the cra's to provide ALL (credit scores included) the SAME information to the consumer as they provide to the customer (ie lender) about the consumer, this will continue. I'm not a fan of big government, but this would be an area where consumers would actually benefit from more regulation.

I am not usually a fan of government intervention either. Government "reforms" usually benefit the CRAs and lenders, not the consumer.

 

The Fair Credit Law only requires that the CRAs provide "A" credit score not a relevant or meaningful credit score. That is like applying for a loan and giving "A name and Social Security Number", not your real name and number.

 

. Leave it to politicians financed by CRAs and lending institutions to institute consumer protections like that. The bureaus also have to give "reasons why the scores weren't higher". The reasons do not actually have to be VALID reasons. Any old reasons are good enough to conform to the letter of the law.

 

It is only dumb "feel good" meaningless reforms that the politicians will ever enact. There is however a law that does have some teeth that I believe could possibly apply to this situation.

 

The bureaus provided their own FAKO scores for years since the law didn't specify that the scores had to be actually used by anybody. The FAKO scores are pretty much a flop with both lenders and consumers.

 

The bureaus colluded to make their own unified (Vantage) score take the place of a FICO score. The Vantage scores have been rejected pretty much by lenders and consumers alike.

 

The action taken by Experian is clearly a move to make consumers (and eventually lenders) dependent on the Vantage score.

 

Can anybody say monopoly?

 or

 Combination_In_Restraint_Of_Trade

An illegal compact between two or more persons to unjustly restrict competition and monopolize commerce in goods or services by controlling their production, distribution, and price or through other unlawful means.

Such combinations — whether in the form of a contract, holding company, or other association — are prohibited by the provisions of the Sherman Anti-Trust Act and other antitrust acts.

 

 

An illegal compact between two or more persons to unjustly restrict competition and monopolize commerce in goods or services by controlling their production, distribution, and price or through other unlawful means.

Such combinations — whether in the form of a contract, holding company, or other association — are prohibited by the provisions of the Sherman Anti-Trust Act and other antitrust acts.

 

 

As long as Experian was cooperating by making the popular FICO scores available to consumers in the free market place, I had no problem with the three bureaus colluding to provide  Vantage Scores.

 

Now that the consumer FICO scores are being blocked in order to further the interests of three competing entities with a monopolistic joint venture (Vantage Score), I believe that some anti trusts laws just might apply. Sherman can you hear me??? :smileytongue: