topic Re: FICO-II bug? lawyer referrals? how strong is my case? in Understanding FICO® Scoring

FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Sat, 10 Apr 2021 03:39:12 GMT

Hello. My FICO-II score, and *only* my FICO-II score, is being suppressed for the following reason: "There is no recent activity on revolving and/or open-ended accounts". This reason is invalid, as I have had a credit card that I have used every month since 2009. In addition, under the “What’s helping your FICO® score” section of my FICO score report (this does not refer to the FICO-II score, but the FICO-8 score), it says “You've shown recent use of credit cards and/or bank-issued open-ended accounts.” (my FICO-II was 719 while my FICO-8 was 849)

So FICO-II says "you have no revolving credit activity" while the other FICO scores say otherwise. In addition, the report literally shows my revolving account history, and there has been activity every month that the report covers.

It seems like there is a bug in their FICO-II algorithm or a manual mistake was made for my account.

Am I missing something? If not, how strong is my case for a lawsuit, and do you have any lawyer recommendations? Notably, if this is a bug, it might be affecting *many* people when applying for mortgages, which is the largest financial committment most people ever make. So it would be a big deal.

Re: FICO-II bug? lawyer referrals? how strong is my case?

AllZero — Sat, 10 Apr 2021 03:46:47 GMT

Congratulations on your approval!
@Anonymous wrote:
Hello. My FICO-II score, and *only* my FICO-II score, is being suppressed for the following reason: "There is no recent activity on revolving and/or open-ended accounts". This reason is invalid, as I have had a credit card that I have used every month since 2009. In addition, under the “What’s helping your FICO® score” section of my FICO score report (this does not refer to the FICO-II score, but the FICO-8 score), it says “You've shown recent use of credit cards and/or bank-issued open-ended accounts.” (my FICO-II was 719 while my FICO-8 was 849)

So FICO-II says "you have no revolving credit activity" while the other FICO scores say otherwise. In addition, the report literally shows my revolving account history, and there has been activity every month that the report covers.

It seems like there is a bug in their FICO-II algorithm or a manual mistake was made for my account.

Am I missing something? If not, how strong is my case for a lawsuit, and do you have any lawyer recommendations? Notably, if this is a bug, it might be affecting *many* people when applying for mortgages, which is the largest financial committment most people ever make. So it would be a big deal.

@Anonymous

Are you reporting a balance on a revolving account?

If yes, is it a national bank card?

Is it a credit union card?

Is it a store card?

Is it a charge card, e.g. American Express?

If yes to the last three, those may be some of the anonolyies with Experian 2.

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Sat, 10 Apr 2021 03:48:55 GMT

Are you reporting a balance on a revolving account? yes

If yes, is it a national bank card? no

Is it a credit union card? no

Is it a store card? no

Is it a charge card, e.g. American Express? It is Visa

Re: FICO-II bug? lawyer referrals? how strong is my case?

AllZero — Sat, 10 Apr 2021 03:56:49 GMT

@Anonymous wrote:
Are you reporting a balance on a revolving account? yes
If yes, is it a national bank card? no
Is it a credit union card? no
Is it a store card? no
Is it a charge card, e.g. American Express? It is Visa

Perhaps, if you have not done so, try a different national bank card that is not one of the above to report a balance. You may or may not yield different results.

As far as a lawyer, I do not have an answer to your question.

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Sat, 10 Apr 2021 04:01:06 GMT

To be clear, the other FICO scores do see revolving account activity. Is it expected that FICO-II might not see revolving account activity when the other scores do? They are all using the same underlying information, so this is not what I expect (plus it is simply wrong...).

My card is a Fidelity® Rewards Visa Signature® Card.

Re: FICO-II bug? lawyer referrals? how strong is my case?

AllZero — Sat, 10 Apr 2021 04:13:14 GMT

@Anonymous wrote:
To be clear, the other FICO scores do see revolving account activity. Is it expected that FICO-II might not see revolving account activity when the other scores do? They are all using the same underlying information, so this is not what I expect (plus it is simply wrong...).

My card is a Fidelity® Rewards Visa Signature® Card.

@Anonymous Forgot to ask, what is the credit limit on that card? I think there is a threshold for EX2, I forgot what the cap was, something around $28K or $32K. I'll have to dig it up...

Re: FICO-II bug? lawyer referrals? how strong is my case?

Remedios — Sat, 10 Apr 2021 04:11:01 GMT

Real quick, while you are free to engage in litigation with whomever you feel like it, leave it off this board, be it publicly or in PMs.

That's a conversation to be had with an attorney, not with members here.

Re: FICO-II bug? lawyer referrals? how strong is my case?

Jnbmom — Sat, 10 Apr 2021 04:11:41 GMT

@Anonymous wrote:
Hello. My FICO-II score, and *only* my FICO-II score, is being suppressed for the following reason: "There is no recent activity on revolving and/or open-ended accounts". This reason is invalid, as I have had a credit card that I have used every month since 2009. In addition, under the “What’s helping your FICO® score” section of my FICO score report (this does not refer to the FICO-II score, but the FICO-8 score), it says “You've shown recent use of credit cards and/or bank-issued open-ended accounts.” (my FICO-II was 719 while my FICO-8 was 849)

So FICO-II says "you have no revolving credit activity" while the other FICO scores say otherwise. In addition, the report literally shows my revolving account history, and there has been activity every month that the report covers.

It seems like there is a bug in their FICO-II algorithm or a manual mistake was made for my account.

Am I missing something? If not, how strong is my case for a lawsuit, and do you have any lawyer recommendations? Notably, if this is a bug, it might be affecting *many* people when applying for mortgages, which is the largest financial committment most people ever make. So it would be a big deal.

@Anonymous

A lawyer for what exactly, because of the reason codes???????????

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Sat, 10 Apr 2021 04:11:50 GMT

What is EX2? And what significance and impact does the credit limit have? I think my limit is $40K, by the way.

Re: FICO-II bug? lawyer referrals? how strong is my case?

USMC_Winger — Sat, 10 Apr 2021 04:14:50 GMT

@AllZero wrote:
@Anonymous wrote:
To be clear, the other FICO scores do see revolving account activity. Is it expected that FICO-II might not see revolving account activity when the other scores do? They are all using the same underlying information, so this is not what I expect (plus it is simply wrong...).

My card is a Fidelity® Rewards Visa Signature® Card.
@Anonymous Forgot to ask, what is the credit limit on that card? I think there is a threshold for EX2, I forgot what the cap was, something around 28 or 32K. I'll have to dig it up...

Found it. The credit card limit can't exceed $31,000 for EX 2. "Use a national bankcard with a CL no higher than $31,000, because the mortgage scores exclude cards with higher credit limits." https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Master-Thread-pub-5-17-20/m-p/6023350/highlight/true#M169681

Re: FICO-II bug? lawyer referrals? how strong is my case?

Remedios — Fri, 04 Jun 2021 03:06:26 GMT

@Anonymous wrote:
What is EX2? And what significance and impact does the credit limit have? I think my limit is $40K, by the way.

EX2 is scoring model you're basing your "lawsuit" on

Significance is that cards exceeding certain limit are excluded from utilization calculations on older models, but not newer ones.

Hopefully attorney will be a bit more familiar with the topic.

Re: FICO-II bug? lawyer referrals? how strong is my case?

AllZero — Sat, 10 Apr 2021 04:17:56 GMT

@Anonymous wrote:
What is EX2? And what significance and impact does the credit limit have? I think my limit is $40K, by the way.

Experian FICO 2. Mortgage score. Your referenced II. I am under the presumption we are referencing the same? What are referencing?

$40K limit is very nice. You broke the threshold. See message 6, 10.C. EX2.

Re: FICO-II bug? lawyer referrals? how strong is my case?

USMC_Winger — Sat, 10 Apr 2021 04:21:40 GMT

@Anonymous wrote:
What is EX2? And what significance and impact does the credit limit have? I think my limit is $40K, by the way.

Experian Credit Reporting Agency's FICO Score 2, which is one of the three scores used for mortgages. $40K exceeds the $31K limit, so just use a different national bank card with a lower credit limit to report a small balance.

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Sat, 10 Apr 2021 04:38:30 GMT

Ok, thanks for linking me to that. So it looks like there is a credit limit threshold somewhere between 31,000 and 34,900 such that, if your card's limit exceeds that threshold, it might be entirely ignored when generating the EX2 score (but not the EX8 score!).

The intricacies of how these credit scores work is frustrating. It seems silly that, simply because I was deemed *more* credit worthy, I would have my credit score drop.

Thanks again for the info.

Re: FICO-II bug? lawyer referrals? how strong is my case?

dragontears — Sat, 10 Apr 2021 04:46:33 GMT

@Anonymous wrote:
Ok, thanks for linking me to that. So it looks like there is a credit limit threshold somewhere between 31,000 and 34,900 such that, if your card's limit exceeds that threshold, it might be entirely ignored when generating the EX2 score (but not the EX8 score!).

The intricacies of how these credit scores work is frustrating. It seems silly that, simply because I was deemed *more* credit worthy, I would have my credit score drop.

Thanks again for the info.

It has nothing to do with how "credit worrhy" you are to be able to get a card with that high of a limit.

EX2 was written over 20 years ago, back then most revolving credit with limits that high was HELOC and it was put in place not to penalize those with HELOC. As CL increased for larger number of people FICO tweak that when creating FICO 8

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Mon, 12 Apr 2021 02:45:08 GMT

Yeah before you sue someone, you gotta make sure you got a case.

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Mon, 12 Apr 2021 02:18:49 GMT

It looks like this was resolved already because a card was being excluded from EX2 scoring due to the high credit limit ($40K).

But this EX FICO 2 'bug' also happened to me with 2 cards reporting $189 and $1234 each, with limits of $2,000 and $13,000, respectively.

Full details from October 2020 are here at this forum link. ($1234 on a Citi Costco Anywhere Visa card, $189 on a credit union Mastercard.)

If I let balances report on my AMEX BCE and Discover It cards, with those 2 above at $0, I don't get the "No recent revolving activity" reason.

Just putting this here in case it happens to someone else and they find this thread.

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Mon, 12 Apr 2021 02:43:03 GMT

@Anonymous wrote:
It looks like this was resolved already because a card was being excluded from EX2 scoring due to the high credit limit ($40K).

But this EX FICO 2 'bug' also happened to me with 2 cards reporting $189 and $1234 each, with limits of $2,000 and $13,000, respectively.
Full details from October 2020 are here at this forum link. ($1234 on a Citi Costco Anywhere Visa card, $189 on a credit union Mastercard.)

If I let balances report on my AMEX BCE and Discover It cards, with those 2 above at $0, I don't get the "No recent revolving activity" reason.

Just putting this here in case it happens to someone else and they find this thread.

@Anonymous now that may be a bug for real!! Did you ever try repeating that and see if you got the code again?

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Mon, 12 Apr 2021 03:48:14 GMT

@Anonymous wrote:
@Anonymous now that may be a bug for real!! Did you ever try repeating that and see if you got the code again?

No, but I really should do it after the May $20 AZEO test. So June with something on the Citi Costco card (CL $14,500) alone.

Re: FICO-II bug? lawyer referrals? how strong is my case?

Anonymous — Mon, 12 Apr 2021 05:21:57 GMT

Follow-up genuine question: how do we know that the 31K-35K CL exclusion threshold is intended? Did someone from FICO confirm this?