FICO algorythm flaw

[Anonymous]

I have spoken with second level customer service and/or supervisors at EX EQ and myFICO and hitting a wall.

I have a vehicle loan and an auto loan with the same Bank, WPCU.  when I visit EX site and EQ site to pull my report, the auto loan shows as an auto loan and is in the section for auto/installment loans.  When I run my report at MYFICO, the auto loan is showing up in the revolving account section even though the account type clearly says auto.  Now what is really strange is in the score section of myfico under things negatively impacting my score it has high credit utilization listed as a negative factor for all three bureaus but shows my utilization as 14% EQ / 1% TU / 14% EX. 

The Myfico supervisor told me that the auto loan was triggering the high utilization alert and dinging my score.and needs to be re-coded properly by EQ and EX.  Even though he can see clearly that it is an auto loan, he says he can't fix how it is being categorized by the formulas that generate the score.

EQ & EX say that its reported as an auto loan and MYFICO needs to fix it on thier end  I am inclined to beleive this is an issue with MYFICO because the high utilization (is 1% high lol) is negatively impacting my TU Fico score.

I'm thinking BBB, CFPB and Atty Genreal complaints..........any suggestions?

MyFico moderator can you help?

[Anonymous]

Update- I received a call today from Judy G. at MyFico who confirmed that there is a "coding issue" in my file and that the tech team was correcting it.  She will notify me when the corrections are made and provide a replacement report.  She said that the issues were causing my report to display incorrectly but that she was confident that the FICO score calculation was not compromised. 

Because of Judy's prompt, proffessional response and the fact that she took the time to make sure she fully understood the issues, I will hold off on sending complaints to the CFPB and AG for now.  I'll update again after I see the corrected report

[TheConductor]

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@Anonymous wrote:

Because of Judy's prompt, proffessional response and the fact that she took the time to make sure she fully understood the issues, I will hold off on sending complaints to the CFPB and AG for now.  I'll update again after I see the corrected report 

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Any 3rd party site that pulls your credit report may have errors in their own code that cause things to appear on their display of your report that are not on your actual report.

Consequently, it is extreme overkill to be bugging the CFPB, BBB, AG, etc. about these issues until you are sure that what you are complaining about is an actual reporting inaccuracy in the file that comes from the CRA.

[Anonymous]

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@TheConductor wrote:

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@Anonymous wrote:

Because of Judy's prompt, proffessional response and the fact that she took the time to make sure she fully understood the issues, I will hold off on sending complaints to the CFPB and AG for now.  I'll update again after I see the corrected report 

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Any 3rd party site that pulls your credit report may have errors in their own code that cause things to appear on their display of your report that are not on your actual report.

Consequently, it is extreme overkill to be bugging the CFPB, BBB, AG, etc. about these issues until you are sure that what you are complaining about is an actual reporting inaccuracy in the file that comes from the CRA.

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The Conductor, thanks for the feedback but I'm not sure if you read my original post.

The company that generates the FICO score (fair isaac, owner of this site) and the CRAs providing the data used to calculate the FICO score both acknowledged that there was an error but both told me the other party was the one that needed to fix the error creating a catch 22.  If neither party would fix it, filing a complaint would have been the only option available to get one of them to make the correction and I don't think that would have been overkill at all.  Now that MyFico is working to resolve the issue there is no need to file a complaint which is why I stated that I was holding off on doing so.

If the "third party" site that has "errors in thier code" is part of the same company that calculates your FICO score, it is a little more concerning.  When MyFico says on the same page of a 1 bureau report that  "high utilization is negatively impacting your score" and "your utilization is 1%" it makes you wonder what is happening "under the hood".  If information was provided to that "third party" site contains information not provided to the consumer in the consumer report pulled directly from the CRA that would be a violation of the FRCA and I don't think it would be "bugging" a regulator to notify them of a violation. 

The CFPB, BBB and AG are entities that provide assistance to consumers for a variety of issues and making them aware of these types of issues will help them better acheive thier mandates.  CFPB handles literally hundreds of thousands of complaints (you can actually download the entire list on thier site) so 1 more complaint definately wouldn't be "bugging them"  here's what they say on thier site:

How one complaint can help millions

459,910 company responses to consumer complaints

98% of consumers get timely responses from companies

By submitting a complaint, consumers can be heard by financial companies, get help with their own issues, and help others avoid similar ones. Every complaint provides insight into problems that people are experiencing, helping us identify inappropriate practices and allowing us to stop them before they become major issues. The result: better outcomes for consumers, and a better financial marketplace for everyone.

As a big consumer advocate, i hate to see anyone discouraged from seeking all remedies available when they are being stonewalled by big business.  Fortunately, MyFico is now working to resolve the issue.

[Anonymous]

Update #2 - Haven't heard back from Myfico yet but couldn't wait so I pulled a new 1 bureau report for EX and EQ both through myFico.  EX score up 19 points and EQ score up 15 points since yesterday.  It looks like the issue relating to the auto loan being miscategorized has been corrected Yay!  Still a few issues unresolved..............looking forward to the final corrected reports and scores...

Stay tuned.

[TheConductor]

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@Anonymous wrote:

The Conductor, thanks for the feedback but I'm not sure if you read my original post.

...

As a big consumer advocate, i hate to see anyone discouraged from seeking all remedies available when they are being stonewalled by big business.  Fortunately, MyFico is now working to resolve the issue.

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I did indeed thoroughly read your post. I understood you, I simply disagree. 

As both a big consumer advocate and someone with a thorough knowledge of customer service from the service providers' side, I can say with certainty that not all customers receive equal service.

The customer who has done their best to exhaust the remedies that are within their personal control will typically receive swifter and more effiicient service when they do make a complaint.

This is why, for example, since I subscribe to a paid credit monitoring service I save my government-mandated free annual credit reports to be used when I need to cross-check something that looks incorrect. That way, when I make a complaint to myFICO or CCT or whatever service I am subscribing to, I can be sure I know it is their error and not the CRA's error. Or vice versa, as the case may be.

Moreover, by doing so I am doing a service to other consumers.  Yes, any of the agencies with which you intended to lodge a complaint will dutifully respond to all complaints, no matter how many they receive. However, when I as a consumer do my best to make sure my complaint is one that is necessary and warranted, I am doing a service to the other consumers who are lodging complaints, by enabling the agency to more efficiently apply their resources.

I find the suggestion that one more complaint wouldn't make a difference every bit as specious as the "one vote doesn't make much of a difference" argument that prevents so many from participating in the political system. The greater currents that shape societies and histories are formed by the collective effect of many small movements. The little things do count.