Credit Score Lawsuit – Fair Isaac Corp. Files Credit Score Lawsuit Against Experian, TransUnion, and Other Companies
In the wake of a recent Federal Reserve Board report, Fair Isaac Corp. filed a credit score lawsuit against Experian Plc, TransUnion LLC, and other companies for allegedly inflating and misrepresenting credit scores. In this decision, a federal jury found that Experian was wrongly representing its product by failing to disclose that it also sold its in-house model of a credit score. Consumers may have mistakenly concluded that Experian was selling their credit scores when, in fact, they are not.
Since the lawsuit was filed, the three major credit bureaus are under pressure to rectify the problem.
While they don’t have to comply with the law, they’re bound by a confidentiality agreement with the government. It’s a requirement that they publish accurate information about their clients to protect their business. The complaints are meant to force companies to comply with federal regulations, but Harris believes the credit bureaus aren’t doing so.
While this lawsuit isn’t a common occurrence, it is not uncommon for consumer debtors to file a lawsuit in hopes of lowering their credit scores.
Many consumers have been impacted by this problem. Even though the debtors have been told by the government that their accounts are not in default, their scores remain high. Often, a credit score is affected by a lawsuit, and if a creditor sees this, they will be more likely to reject a loan application.
Despite the lawsuits’ widespread scope, the FTC has not enforced any new rules. Nevertheless, lenders are required to send their credit scores to consumers within two months of requesting them. But this is not always the case, and banks can continue to make mistakes – it’s not uncommon for the bureau to incorrectly report a creditor’s information. This is a very common situation, and the federal government’s recent ruling has blamed the agencies that publish the scores.
In addition to this case, another lawsuit filed by a woman in New Jersey a few months ago against the three credit bureaus was filed against Navient.
The company had reported the payments as late instead of the current, according to the Federal Education Department. But the company had corrected the error, but it did not update her credit score. When she did, she contacted the federal education department and the bureaus, but no one replied to her inquiries.
The federal court ordered Experian to change the way its credit scores are reported. In 2006, Fair Isaac sued the three credit bureaus because they reported student loan payment status differently. The court ruled against the credit bureaus. The court’s decision was in favor of the plaintiffs. While the FICO score is the only one that is publicly available, the other two are the same. They aren’t the same thing.
A South Carolina consumer filed a class-action suit against the national credit bureaus for using a proprietary score that is different from the FICO score.
The two scores are similar, but they differ by 40 points. However, the plaintiffs’ attorneys say the companies deliberately gloss over the difference between the two scores and use their websites to mislead consumers into believing that they have the same credit score. This is illegal and the company should pay royalties.
The consumer’s lawsuit is against Experian Information Solutions, Inc. and TransUnion. These companies use a similar 501-990 range to calculate a credit score. Both companies claim that the VantageScore and the FICO scores have deceptively low standards. Both systems are false and misleading in the past. If you aren’t sure what your score is, consult your credit bureau. Your lender will be able to provide you with a free copy of the report.
The lawsuit alleges that a company’s credit score is inaccurate because it was based on inaccurate data. The lawsuit also claims that the company did not report the student loan payment status properly. As a result, the credit bureaus are not in compliance with federal laws regarding credit scores. The resulting wrongful reporting could affect millions of consumers. In light of the recent ruling, consumers need to be aware of their rights when it comes to their finances.