As part of the 2003 FACT Act,Congress ordered that credit reporting and credit scoring be "studied."  

It is inconceivable that anything needs to be studied, but since the legislators and regulators pretend not to have a clue, I submitted my thoughts on the issues:

My 8/16/04 submission to the FTC regarding the credit scoring study mandated by Congress.

My 9/17/04 submission to the Federal Reserve Board regarding credit reporting problems.

Most likely the so-called regulators will ignore my submissions just as they ignored my complaints and lawsuits.  So I'll send my submissions directly to the members of the House and Senate Finance Committees.

Credit Scoring makes NO sense
The Low Scorers

Credit Scoring makes NO sense.

 Want proof?  

See how the Fair Isaac Credit Scoring software is apparently flawed.

Review the credit reports, showing the Borrower's Score DOWN 12 points within ONE day and the following day the Score is UP 17 points.  

The CoBorrower suffers a 24 point FICO Score DROP in only ONE day!

All this with no apparent changes on the credit reports.

Need MORE proof?

Read the BayHouse Credit Forum!

See how the EXPERTS cannot agree on how Credit Scores are calculated!

Since we are not allowed to know how Scores are calculated, we depend on the experiences by those who regularly see credit reports and Scores. Apparently we have many different experiences, once again proving that Scoring MUST be flawed.

The Low Scorers
(Americans with below average Credit Scores.)

In December 1999 I heard on the radio that 34 million Americans live in poverty, including 10 million children, according to government statistics. One in five kids is growing up in poverty in the United States today. By Nov. 99 the homeless population in the US had INCREASED to 800,000.

Having lived on the road for much of the last few years, I discovered rural America, the dirt roads, the desert, the bush. I also spent a number of nights parked off San Francisco's 3rd Street and in a few other not so great areas.

I found an entire CLASS of people left behind by the economic boom.

The class of the poor DISADVANTAGED.

It so happens that most of the people in that class are also Low Scorers and people of color.

Cash payers, with no computer, no local internet access, maybe not even a phone or running water or electricity in rural areas.

Then there are the consumers who have a phone and local internet access, but they're too busy working and raising kids to spend endless hours online, weeding through the ads and fake consumer sites in search of accurate credit scoring information. I got to know a lot of those people during my practice as real estate and mortgage broker.

I've met so many people who work two jobs, yet they barely survive.  $7/hour delivering NAPA auto parts doesn't get you very far in Fairbanks, AK.

Of course there are also people who just can't work. The disabled, ill, and seniors.

They are all completely left out and ignored. There is NO place where they can get answers, IF they even have questions.

Most people don't even know they HAVE a Credit Score.

For the most part, these are wonderful people. Generous, willing to help and share, yet classified by many "achievers" as losers.

It's no secret that the rich are getting richer, at the expense of the working poor.

The redistribution of wealth is accelerated at a tremendous pace, due to

• credit scoring
• incorrect credit reporting
• insurance rating according to zip codes and credit scores
• the despicable yet "legal" business practices in the United States
• the underfunded and deteriorating public school system
• the lying corrupt government and legal system
• and the endless supplies of crack and heroin

Credit Scoring is the very latest, and extremely efficient measure to ensure that most of the Low Scorers and their children will stay in that class, "disadvantaged" by their zip code, culture, color, education, profession, age, gender, physical and mental limitations, and of course, children.

The poor Low Scorers pay MORE for personal loans, credit cards, mortgages, cell phones, pagers, and auto insurance -- REGARDLESS of their own payment history.

You couldn't care less?

As long as the economy continues to expand, I doubt you need to worry. You can continue to enjoy low insurance premiums and low interest loans, the best cell phone plans, etc. etc., all at the expense of the disadvantaged poor.

But what will happen when unemployment doubles?

Maybe you'll be shot in a car jacking or at the store, just because you're there, and "they" couldn't care less about you either.

There is so much I could say about Credit Scoring, Reporting and Disputing. As much as I try to do web updates, I just don't have enough time.

Another great site on credit reporting and scoring is VCR.org (Victims of Credit Reporting.)

For the latest developments in Credit Scoring and related issues, please visit the Credit FORUM.

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