Author: Greg Fisher

Experian’s sloppy work

Experian continues to sell credit scores saying that employers use them, while stating that employers do not use them.

They just don’t pay attention (too busy preening for the camera and creating bizarre advertisements).

While waiting for Experian to blink, see some other screw-ups by the British:

  1. “Credit scores represents your creditworthiness and indicate the likelihood that you will repay a debt as agreed.”
  2. “However, a credit scores are not stored as part of your credit history.”
  3. And, the best one: “Credit scores are based entirely on the information found on an individual’s credit scores.”

Let’s hope so.

FHA adds 580 FICO credit score to guidelines

A press release (HUD No.10-016) from the U.S. Housing and Urban Development Department (HUD) Federal Housing Administration (FHA) dated January 20, 2010 is titled, “FHA Announces Policy Changes to Address Risk and Strengthen Finances.”

The release states: “New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.”

A senator, credit scores, losers and fake guitar playing


The lyrics to FreeCreditReport.com’s latest ditty:

Wanted to get myself a new cell phone
So I could hear myself at a ring tone
Who knew the store would go and check my credit score?
Now all they let me have is this dinosaur
Hello? Hello? Hello? Can anybody hear me?
I know. I know. I know. I should have gone to

FreeCreditReport.com
That’s where I should have gone. Could have got my knowledge on

ANNOUNCER: Free credit score and report with enrollment in Triple Advantage.

Meanwhile, in a not-so-veiled reference to Experian (the owner of FreeCreditReport.com) U.S. Senator Charles Schumer states, “If these companies want to say – or sing for that matter – that they are giving people free credit reports, then they can’t charge people $15 a month, simple as that.”  On his website, Schumer continues, “My plan would finally bust up this scam and give consumers some honest choices”

One problem, as stated in the FreeCreditReport.com Terms and Conditions:  “The PLUS Score is not currently sold to lenders, and is not an endorsement or guarantee of your credit worthiness as seen by lenders.”

So, it really is true:  You don’t get what you don’t pay for.  See Fake-O FICO Funk.

Speaking of videos, don’t miss creditscoring.com’s montage of people talking about employers using scores— while the bureaus say that they don’t even sell scores for that purpose.

Insurance credit scores in Michigan

From the Michigan Supreme Court:  “The Court will also hear oral arguments in Insurance Institute of Michigan v Insurance Commissioner, in which the plaintiffs, a group that includes insurance companies and individual customers, challenge administrative rules aimed at prohibiting insurance scoring, the practice of using consumer credit report scores to set personal insurance rates.”

The Insurance Institute of Michigan states, “A 2007 study by the Federal Trade Commission found that credit-based insurance scores are effective predictors of risk under auto policies.

The Michigan Office of Financial and Insurance Regulation contends, “Credit information has been found to contain such a high rate of errors that there is an unacceptable likelihood that persons will be misclassified,” and cites studies by U.S. PIRG and the Consumer Federation of America.

Media depiction, credit score use, employers, CBS, Dallas

Consumer reporting agencies Equifax, TransUnion and Experian all state that they do not provide credit scores for employment screening.

Despite that, the anchor at the CBS–owned television station in Dallas asks the financial expert and analyst to explain it all to us:

KTVT CBS 11, Dallas financial expert and analyst explains it all to us
KTVT CBS 11, Dallas financial expert and analyst explains it all to us

It is today’s #1 hit in Yahoo News for the term “credit score” (complete with a picture).  You can’t buy that kind of ranking.

From: Greg Fisher
Sent: Monday, August 17, 2009 1:27 PM
To: KTVT: Ginger Allen, interviewer; Lori Conrad, communications director; Steve Mauldin, president & general manager; news@cbs11tv.com; KTVTNewsEyeTeam@ktvt.com; cbs11@ktvt.com
Cc: Jim Lacamp
Subject: credit score, employers, CBS, CBS Television Stations, KTVT

You wrote, “In this economy, your credit score is more important than ever before, as prospective employers are looking at them to help in hiring decisions.”

Who is your source regarding credit score use by employers?

More

Countdown to when Experian removes statement about employers using scores

Return here to find out when Experian removed its statement that employers use credit scores.

Here is the statement:

“Credit scoring helps potential lenders, landlords, and employers quickly gauge an applicant’s credit history.”

At the bottom of the page Experian implores, “Contact Us – If this doesn’t answer your question please contact us.”

By all means, contact them.

The domains qspace.com and iplace.com are part of Experian’s out-of-control pile of web addresses.

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Sunday, July 26, 2009 9:18 PM
To: help@qspace.com; heather.mclaughlin@experian.com; mediarelations@experian.com; corporate.responsibility@experian.com
Cc: greg@creditscoring.com
Subject: credit score, employers, Experian, iplace.com

You state, ”Credit scoring helps potential lenders, landlords, and employers quickly gauge an applicant’s credit history.”

http://qspace.iplace.com/qspace/DirectPull/3D_key.asp?section=ALL

After the tongue-lashing you took at creditscoring.com, you should consider a different line of work.

http://www.creditscoring.com/influence/industry/consumerreportingagencies/experian/training-employer.html

What is the name of an employer who uses credit scores?

FreeScore.com and Ben Stein: Employers use credit scores

Consumer reporting agencies Equifax, TransUnion and Experian all state that they do not provide credit scores for employment screening.

But in a television commercial for FreeScore.com, spokesman Ben Stein states, “Whether you’re in a financial hole, or just want to get a loan, a better interest rate, or a new job, you’re at the mercy of your credit scores.”

From: Greg Fisher
Sent: Friday, July 24, 2009 10:36 AM
To: Nate Allard, Media First Public Relations
Subject: credit score, employers, FreeScore.com

 

You wrote, “Of his new role as commercial spokesperson for FreeScore.com, Mr. Stein said…  ‘Poor scores can cost people higher interest rates on loans and credit cards or even cost them a job.’“

 

Who indicates that credit scores are used in employment?

Wikipedia Credit Karma/FICO baloney

The 4-year mess continues.  But, how long will it take the collective brain of the world to figure out this one?

Genius 99.23.41.118 contributes:  “Credit Karma will provide the FICO score from TransUnion for free, but will not provide the actual credit report.”

But, as any idiot can see, at the “wiki” about Credit Karma:

Credit Karma provides users with a proprietary credit score model. The scoring is on a scale of 300 to 850 which is the same scale as FICO Score from Fair Issac Corporation.

And, what a coincidence!  The Credit Karma score scale is exactly the same as the FICO!  No wonder the wiki is whack. 

The editors were duped again by just another Fake-O flim flam.