Experian has started denying access by consumers to their Fico
Credit score effective on February 14, 2009. The Experian Credit
Score is based on an individuals credit report data on file at
Experian. this is a major set back for consumers.
Many consumers don't realize that each of the major three
credit bureaus may have different information and different credit
scores for any individual. The problem is two fold. The first is
that the information on file is different at each bureau, the
second is that all three "adjust" many of the scoring
criteria to establish each credit score.
Without access to Experian credit scores, there is a missing
piece to the puzzle and will make it more difficult for anyone to
compare scores. The credit report, and the data contained, is the
reference point for creating credit scores. But since the scoring
could also be different, even if the data matches, the credit
scores may not.
According Experian, the new policy is a result of disagreements
with the Fair Issac company who provides the Fico method of
scoring to the credit bureau. This is just another example of the
credit bureaus (all three) trying to increase their revenue. All
three credit bureaus have developed other scoring methods as
alternatives or in addition to the Fico credit scores.
This is just another example of why our whole credit system is
in ruin. The credit bureaus constantly look for ways to increase
revenue at the expense of the consumer. The lenders add different
scoring factors to meet their revenue goals. Our recent subprime
melt down is a good example of how the credit system can be
manipulated.
Although Experian has not stated the exact reason for the
disagreements with Fiar Issac, chances are it's about money. Since
compensation to Fair Issac is based on selling the Fico Credit
score, it would appear that Experian can't due to the
disagreement.
Experian has alternatives, for a price, that a consumer can pay
to see and review. Of course there is no direct comparison
possible to the two other credit bureaus Fico scores. Experian can
do what ever they want, there are no controls other than the
original time limits on response by the Fair Credit Reporting Act.
Experian receives more complaints than either of the two other
major credit bureaus combined. Most requests for verification are
refused for either lack of information and/or failure to
have a required account number (which means you are a paying
customer). Unlike the other two major credit bureaus, you can't
call and talk to a live person at Experian.
Experian has demonstrated a lack of concern for consumers and
lenders by failure to provide easy access to credit information.
Experian has a track record of pursing revenue in an aggressive
and sometimes deceptive manner.
Experian was charged by the FTC in 2003 for deceptive marketing
practices in 2003. Here is the story from the FTC website:
Consumerinfo.com, Inc., doing business as Experian Consumer Direct, has settled Federal Trade Commission charges that it deceptively marketed “free credit reports” by not adequately disclosing that consumers automatically would be signed up for a credit report monitoring service and charged $79.95 if they didn’t cancel within 30 days, in violation of federal law. The settlement requires Consumerinfo to pay redress to deceived consumers, bars deceptive and misleading claims about “free” offers, requires disclosure of terms and conditions of any “free” offers, and requires the defendant to give up $950,000 in ill-gotten gains.
The Experian credit score is no longer a Fico score, which
would appear to be a disservice to both consumers and lenders who
rely on Experian credit scores. Experian's profits were up
according to reports back in November 2008, even though the
activity of credit has sharply fallen. According to the Wall
Street Journal's Market Watch, part of this is from cost cutting
and from helping lenders find out when and how to collect past
debts.
The bottom line on the Experian credit score accuracy is becoming
more questionable. The best way to make corrections on your
credit data at Experian is to pay a fee. Not a very good situation
for consumers. But if you want to insure accurate information at
Experian, it may the consumers only choice.
