Cub reporters document employers saying they use credit scores

Recently, a Reuters blogger said that the CEO of credit score company FICO told him that employers use credit scores.

But despite FICO’s claim and the rest of the hoopla, only two employers have admitted it.

A Virginia television station obtained video footage of a credit union representative saying “Being a financial institution we have a set level its yes or no. If the credit score is below a certain number, then there’s nothing we can do about it.”

Virginia

In Texas, a television reporter interviews a bank senior vice president who said, “If someone is going to be handling your money and their credit score reflects irresponsibility with money— with their own money– then there may be some concern that they might be irresponsible with your funds, too.”

Equifax: We’re the only one

From: Greg Fisher
Sent: Monday, February 22, 2010 12:16 AM
To: Tim Klein, vice president, public relations, Equifax
Subject: credit score, FICO, Equifax, exclusivity

Richard F. Smith, chairman and chief executive officer
Equifax, Inc.

You write, “The FICO Score is the most commonly used scoring model among lenders, and Equifax is the only major credit reporting agency that can provide you with your FICO Score.”

Is Equifax really the only one, or are you saying that TransUnion is not a major consumer reporting agency?

Also, please address the question from October 14 regarding the Dallas Morning News.

Greg Fisher
The Credit Scoring Site
PO Box 342
Dayton, Ohio   45409-0342
937-681-3224

Reuters blogger: FICO says employers use credit scores

Fun feedback loop

Selling its score, FICO cheerfully says that employers use credit scores (occurs at :47 in the video).

Consumer reporting agencies claim that they do not sell credit scores to employers.

Ben Stein says that employers use credit scores.

Felix writes about Ben Stein.

creditscoring.com writes about Felix writing about Ben Stein.

creditscoring.com blog comments trackback to Felix’s blog (July 28 comment: “simmers“).

Felix writes that FICO told him that employers use credit scores.

creditscoring.com writes about Felix writing about FICO telling Felix that employers using credit scores (this page).

credit score, employers, KXRM-TV Fox 21, Colorado Springs

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, February 05, 2010 2:05 PM
To: spytlinski@kxrm.com
Subject: credit score, employers, KXRM-TV Fox 21, Colorado Springs

You wrote, “Your credit score can help or hurt you every time you apply for a loan, buy car insurance, Continue reading credit score, employers, KXRM-TV Fox 21, Colorado Springs

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?

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