Posted on 06/04/2007 10:05:27 AM PDT by Hydroshock
So if you create an artificial method of “scoring” people’s creditworthiness you can hardly be surprised that people find a way to maximize their “scores” since the whole thing is a construct in the first place.
FICO scores have very little credibility. The credit agencies themselves have been abusing the system for years. Granted there are deadbeats out there BUT there are a LOT of good credit people who have been victimized by the agencies.
Yep, my thoughts as well.
“FICO scores have very little credibility. The credit agencies themselves have been abusing the system for years. Granted there are deadbeats out there BUT there are a LOT of good credit people who have been victimized by the agencies.”
It’s also immensely hard to get incorrect data removed from your credit report. I’ve been working for months to get no less than 6 serious errors in my report addressed.
In one case there was a collection agency that said I owed a cable company $44. The cable company said I didn’t owe them anything, and they do work with that collection agency, but they’re not sure why the agency thought I owed them money. The collection agency said it was up to the cable company to notify them. The cable company said they had no one to call at the collection agency, that the collections people had to call them. Finally I had the cable company send me a letter saying I owed them nothing, and sent it to the collections agency. The collections agency now agrees I owe them nothing, but despite promises haven’t notified the credit bureau yet. I filed challenges (had to do it with all 3!) and am waiting for a response. That is just one of the errors...
The whole credit ranking industry is a fraud. I have years of ontime mortgage, car, and other payments.. and a couple reporting errors for amounts like $44 and $300 led to my fiancees student loan being turned down, with me as a cosigner.
I took me two months to clear up a couple of SNAFUs. Just keep on top of it.
I agree 100%. There is a simple solution; if there is mistake that is not the consumer’s fault, they should be able to sue the credit reporting agencies for actual and punitive damages. I was denied a mortgage three years ago, because I never looked at my credit score, assuming it was perfect. There were THREE errors in it from companies I had never even heard of. By the time I had gotten it cleared up, it had taken four months, and many hours on the phone to all parties involved who were belligerent and completely unconcerned about my time. I was so angry, I can’t even describe it... I couldn’t believe I couldn’t sue them— my employer bills my time at $120/hour, so I think it only fair that I at least get that for the time I spent trying to straighten their mistakes out. Their negligence in verifying negative information was directly responsible for me not being able to buy the house of my dreams, and yeah I’m still a little angry about it.
Cool! I’m gonna rent spots on my summa cum business school transcript to people who want to get into business school but had lousy college grades. And I’ll rent spots on my ATP license to people who can’t fly but want an airline job. I can retire!!
I recently started receiving calls from a collection agency regarding a debt to Washington Mutal for a little over $200. Interesting since we have NEVER done any biz with WM.
I talked to a supervisor at the collection agency (that was very hard) and the social security number on file was really mine. They told me I have to contact WM to get it taken care of.
Meanwhile the calls were coming in at least 5 times a day, very nasty calls.
We complained online to the California Attorney General and received a reply from the collection agency that they will never call us again.
Guess that $200 is still on my credit report even though it is not mine and never was. After numerous calls to WM they just said sorry it is yours.
It is all a big joke since our social security numbers are floating around everywhere out there and damn near available to anyone.
In California you can’t even have surgery without a social security number, the state keeps stats on health that way.
I just don’t care anymore. I pay cash for everything now and figure if I can’t pay cash for it, I don’t need it.
This is the stupidest part of the whole thing, and I agree it is a fraud. Years of paying hundreds of thousands of dollars on time can be instantly derailed over a $10 mistake... from some idiot who is completely unaccountable.
The FICO score system is an abject JOKE. When you are punished for paying off your debts rather than carrying them (and yes, this is how the system works) you don’t have a system that remotely indicates anything meaningful.
When someone can have a BK and have a 750 credit score a year later, when another pays off $100,000 in debt and never missed a payment but can’t get above 650, your system is broken.
Automated lending is a scam, system has been relying on its nonsense for years, and now is upset that others are finding ways to manipulate in in their favor... Piss Off.
Manually Underwrite and you wouldn’t have had the problems you are currently having.
I have a hard time feeling bad for the credit bureaus. When my husband and I purchased our first home, we found out that he had a terrible credit rating. Turns out that he declared bankruptcy in 1990. Yep, that’s right. He filed for bankruptcy when he was 11 years old. The credit bureau guy was not amused when my husband asked “What do you think happened? My lemonade stand went under?” It took us several months the clear up that “problem.”
I have absolutely no sympathy for the agencies or lending institutions that base their scoring solely on FICO scores at all. I found out that the reporting agencies get paid by the subscribers for every derogatory item listed in a persons credit file. That is why it is so hard to get erroneous items removed. Until a law with real teeth and real penalties for such practices is past the agencies will continue to victimize the consumer.
This was talked about on Fox News this morning. First I had ever heard about the practice.
bump for later
The persons renting their good credit are stealing from banks who have to pick up the tab for loans that will be defaulted on.
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