Regarding the fictitious lates, I documented that these late payments are rated by the scores as per the FICO score factors and I brought the problem to the attention of Barry Paperno at Fair Isaac.
Equifax would NOT delete those late payments after my client's dispute, since they do NOT report the lates.
I've been posting about these fictitious lates for at least a year.
It took a long time to get a Credit Activist client with the right score factors so that I could prove to Fair Isaac that their scores DO rate those fictitious lates.
On the Experian reports are many more of these fictitious lates, but we don't get the details with the score factors. When my client first contacted Barry Paperno about the Experian reports, Barry claimed that it was"only" a display problem and that those fictitious lates are NOT included in the scores.
When my client then asked about the Equifax lates, Barry recommended that he dispute with Equifax and Barry only admitted that those lates are rated for FICO scores because they were the most recent lates and there was no doubt that these fictitious lates caused the lower FICO score, as per the FICO score factors.
Barry finally contacted Equifax directly and got it fixed. However, as you can see by the screenshot above, Fair Isaac did NOT fix their software.
Update 10/07: Several of my clients contacted Barry Paperno at Fair Isaac to have these bogus lates deleted, but he refused to assist. My clients don't have thousands of dollars to hire attorneys and some are seriously ill. They need a lawsuit like they need a hole in the head.
How can members for a class action be identified?
Each time a creditor reported the account as charged off to Equifax, Fair Isaac added a NEW and INCORRECT late payment. Fair Isaac could probably search for all consumers with accounts reported by Equifax as charged off more than one time, but that would include only the consumers with reports still in their system and most reports are deleted after 30 days.
Equifax could search for all consumers who CURRENTLY are subjected to these new fictitious lates.
However, it is extremely unlikely this suit will be filed. It is therefore necessary to enact legislation requiring independent "quality control" for FICO scores and mandating that Fair Isaac MUST immediately correct any software bugs.
Fair Isaac should also be FINED and this would be a good way to fund the quality control.
If this was an automobile defect, the manufacturer would have to announce a recall, notify all customers and of course new cars could NOT be sold until the issue was resolved.
If FICO scores were not available, what would home buyers do? Most mortgages REQUIRE FICO scores.
This is NOT the only FICO bug.
Fair Isaac knows of other problems and won't even contact all consumers who bought the false reports, won't fix their buggy software and it is only interested in profits.
We need a new law with minimum statutory damages for all consumers who can show that their scores were incorrect due to FICO credit scoring bugs.
The damages aren't limited to higher interest and insurance rates. People lose their homes, get divorced and some die because these buggy FICO scores forced them into subprime mortgages.
Ultimately, we need to prohibit credit scoring.
Credit scores are based on a communist concept, evaluating consumers based on the performance of OTHERS.
Americans ought to be treated as individuals.
Creditors ought to take a few minutes to review the credit reports and make SOUND decisions based on the INDIVIDUAL's circumstances. That someone was ill, lost his job, etc. a few years ago should NOT prevent anyone from buying a home and it should not force them into sub-prime mortgages.
There are deadbeats, and then there are all those people who work hard and manage their finances well, but due to events beyond their control they suffer temporary financial problems.
The FICO scoring system is designed to produce artificially low scores.
Low scorers are more profitable. It is currently perfectly legal for creditors and insurers to increase rates based on credit scores.
I have much more evidence supporting my allegations, but unfortunately I have very little time. It appears that the only people who care are the Low Scorers and they also have no money and time, just struggling to get by.
Does anyone care enough to demand action from their elected officials and DOCUMENT and PUBLISH the results?