credit score, TIME: FICO suggests goodwill adjustment

For a while, the idea of the “goodwill adjustment” looked like it was dead.  It is a lie by a furnisher of information to consumer reporting agencies, and flies in the face of logic, ethics and, indeed, the law, which states

The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.

Regardless of that naive federal wish, Fair Isaac, the FICO score company leads the charge with regard to the practice touted by experts, disgruntled consumers and media.

According to TIME Moneyland, ( consumer operations manager Barry) “Paperno says you can request a ‘pay for delete’ agreement or ‘good will[SIC] adjustment’: you pay everything off in full and they remove the black mark from your report.”

Previously, TIME made a correction to one of its articles, although you would not necessarily know it.

In a day of loss of trust in bond rating agencies, the credit report goodwill adjustment baloney is a similar confusing signal in the consumer segment.  Taking the notion to the logical extreme, the consumer could withhold the last payment of an installment agreement unless the creditor agrees to remove all of the account’s history of late payments.  And why not?  Even FICO (with the help of TIME) suggests it.

You had better get on the moneywagon, too; the competition (the unethical consumer) is getting ahead.

“We have met the enemy and he is us.” – Pogo

Credit Karma suggests having creditors lie to credit bureaus

Credit Karma suggests groveling
Credit Karma suggests groveling

Credit Karma CEO Ken Lin says that if you don’t like your credit history, just make one up.

Yesterday, the ABC News NOW interview subject said to beg your lender to change its report to the consumer reporting agencies about you to something more positive.  Lin thinks pestering the bank helps, too.  “You might want to try multiple times if you don’t get a good result the first time,” he said.

Anchor Tanya Rivero plays right along as Lin says, “It’s been known to happen where you can get a lender to remove a delinquency particularly if you were traveling or some other occurence happens.” 

Lin’s malarkey about lying is known elswhere as the Goodwill Adjustment, and is a fashionable notion in pop media circles.

(This vidcap that makes him look like a bozo is a coincidence.)