PART ONE
The Credit
Scoring Site

A bleak account
PART TWO
creditaccuracy.com
Dirty Data
Google
Web     creditscoring.com     creditaccuracy.com
 
PART TWO
creditaccuracy.com
Dirty Data
creditscoring.com
in the media

Clark Howard
USA Today
Newsweek
Chicago Tribune
The Christian Science Monitor
HowStuffWorks
Federal Reserve
Credit Repair
The Detroit News
The Columbus Dispatch
The Augusta Chronicle
Bankrate.com
Bankrate.com
Realty Times
Nolo
About.com
MoneyCentral Radio
Realty Times
Money Maze Radio


The Big Meeting
Or, How I Spent My Summer Vacation

9/3/99 - Transcript of FTC Public Forum: "THE CONSUMER AND CREDIT SCORING"

For easiest viewing of the transcript, follow the directions on the transcript page.

Highlights:

  • Fair, Isaac answers the big question from creditscoring.com: What horrible thing will happen if you release the consumer's score to him?
  • The national credit bureaus' answer to the same question: "It's an issue I'm not going to be able to address today. "

FTC, Public Forum: The Consumer and Credit Scoring

Equifax, Experian and Trans Union were not on any of the panels. They sent some guy instead.

The forum is history, but this is where the fun begins: the FTC transcribed the audio of the forum into written form and posted it on their web site.

The official agenda:

PUBLIC FORUM:
THE CONSUMER AND CREDIT SCORING
July 22, 1999

AGENDA

9:00 a.m.
Introductory Remarks

9:10 a.m.
Credit Scoring: An Overview

This overview presentation is intended, in conjuction with the panel that follows, to give context to our later discussions.

  • Peter McCorkell, Senior Vice President and General Counsel, Fair, Isaac and Company, Inc.

10:10 a.m.
The Use of Credit Scoring In The Mortgage Industry

Panelists will discuss, in addition to credit scoring, mortgage scoring and automated underwriting.

Panelists:

11:00 a.m. - BREAK

11:15 a.m. Consumers' Experiences With Credit Scoring
This session will identify the issues and concerns that consumers have regarding the use of credit scoring. We will first hear from the panelists, who will begin the issue identification process, followed by an open discussion during which everyone in attendance is encouraged to participate.

Moderator: Peggy Twohig, Assistant Director for Financial Practices, Federal Trade Commission

Panelists:

12:15 p.m. - LUNCH BREAK
A list of area restaurants is available on the table outside of Room 432.

1:30 p.m.
Is Credit Scoring Fair?

This panel will address, among other issues, whether the use of scoring adequately assesses risk for all populations of consumers, and how the use of overrides impacts the use of scoring. Following brief presentations by the panelists, we will have an open discussion of the points made by the panelists as will as any issues raised in the morning session that are appropriately addressed here.

Moderator: David Medine, Associate Director for Financial Practices, Federal Trade Commission

Panelists:

  • R. Russell Bailey, Fair Lending Team Leader, Comptroller of the Currency
  • Robert Cook, Senior Fair Lending Specialist, Federal Reserve Board
  • Debby Goldberg, Acting Dir., Neighborhood Revitalization Project, Center for Community Change
  • Peter McCorkell, Senior Vice President and General Counsel, Fair, Isaac and Company, Inc.
  • Raj Mehra, Director, Financial Risk Management, PricewaterhouseCoopers
  • Margot Saunders, Managing Attorney, National Consumer Law Center

3:10 p.m. - BREAK

3:25 p.m.
What Information Should Consumers Receive About Credit Scoring? Who should Provide That Information?
This panel will address, among other issues, whether consumers should have access to credit scores, what information is currently available to consumers concerning scores, what additional information could be made available, and the appropriate source to privide the necessary information (e.g.,consumer reporting agencies, housing counselors, real estate agents, loan officers).

Moderator: Peggy Twohig, Assistant Director for Financial Practices, Federal Trade Commission

Panelists:

4:45 p.m.
Concluding Remarks

  • David Medine, Associate Director for Financial Practices, Federal Trade Commission

Panelists

The Big Questions for the Big Meeting - Before the lunch break, the first five were read aloud and a page with all 25 was given to the FTC.
  1. What percentage of loans evaluated by Fannie Mae and Freddie Mac automated mortgage underwriting use scores created by Fair, Isaac?
  2. Will the credit reporting agencies release data to anyone who wants to create a new scoring system?
  3. If I am applying for a mortgage, how much does it cost to have a score updated immediately if I find errors on my report?
  4. Do you allow creditors to see scores for the purpose of evaluating existing customers? Do credit card companies access credit scores months or years after issuing the card-- to determine the risk of a card-holder-- to raise or lower his rate?
  5. How can I tell how many credit cards to have to avoid that factor lowering my score?
  6. How big is the sample?
  7. What are the highest and lowest possible scores?
  8. What publicly available studies are planned to test the validity of credit scoring?
  9. What actions have government sponsored enterprises Fannie Mae and Freddie Mac taken in the development of the broad based risk score?
  10. Do government sponsored enterprises Fannie Mae and Freddie Mac support the position of not releasing scores to consumers?
  11. Did Fannie Mae or Freddie Mac give Fair, Isaac any money or assistance?
  12. Doesn't inaccurate credit reporting mean inaccurate credit scoring?
  13. What are the consequences administered by the credit reporting agencies for creditors who report incorrect data?
  14. What horrible thing will happen if you release the consumer's score to him? ANSWER
  15. Do those who regulate credit scoring have access to the data and formulae?
  16. Why are there only four reasons that a score is not higher per credit report? Who decided that would be the number?
  17. Does the score play a factor in eliminating the private mortgage insurance requirement?
  18. Is there any agreement between Fair, Isaac and Equifax, Experian, or Trans Union that scores will not be released to consumers?
  19. Is there any agreement between Equifax, Experian, or Trans Union and those buying credit scores that the buyers will not release the scores to consumers?
  20. Is age a score factor? Is it listed as a reason a score is not higher? What is the most number of points lost for being a particular age?
  21. Will you post the transcript of this conference, or a link to one, on your web sites?
  22. Experian states that it analyzes the performance of sample credit histories over a 24-month period to develop scores. If the score is to be used for a 4-year car loan, or a 30-year mortgage, why does it study only 24 months?
  23. If you were to decide to release scores to consumers, would you have to have your board of directors' approval?
  24. Peter L. McCorkell, senior vice president at Fair, Isaac, said, "Minorities and low-income borrowers present a slightly larger risk." [source: MSN MoneyCentral] The Equal Credit Opportunity Act prohibits discrimination based on race and national origin. Who decided race would be a part of the data and evaluation? Why did you make that evaluation?
  25. Why didn't you list this forum on your web sites?

You heard it here, first. Sometimes spin means doing nothing at all:

  • Fair, Isaac - Industry Events - The meeting is missing from their calendar on 6/13/99. Update, 7/19/99: still missing.
  • Associated Credit Bureaus, Inc. - Latest News - The meeting is missing from their list on 6/13/99. Update, 7/19/99: still missing.
  • Equifax :: About Us :: News Releases :: Changing the Shape of Global Commerce (Seriously. No kidding. That's the name of the page). - The meeting is missing from their list 6/13/99. Update, 7/19/99: still missing.
  • Experian News - The meeting is missing from their list 6/13/99. Update, 7/19/99: still missing.
  • Trans Union - What's New - Oh, come on, you don't really expect them to... (6/13/99). Update, 7/19/99: still missing.
  • Fannie Mae - News Releases - The meeting is missing from their list 6/13/99. Update, 7/19/99: still missing.
  • What's New at Freddie Mac - The meeting is missing from their list 6/15/99. Update, 7/19/99: still missing.

Shooting fish in a barrel.

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