     Steven Kallestad (Steve) | Wednesday, August 23, 2000 - 04:12 pm 
Senator Feinstein,
I am writing because of a concern I have regarding Consumer Credit Scoring.
It has become apparrent to me that there is no accurate information available to consumers regarding how their credit information is scored.
My extensive research has led me to believe that legislation is necessary that requires commercial vendors of credit scores to release their formulas to the public.
My reasons are as follows:
1. There is no system of checks and balances that would prevent scoring on the basis of religious affiliation, race, etc.
2. There is no way for a consumer to arrange his finances in a way that would insure the best possible rates for Mortgages or other large purchases. (A simple re-arranging of accounts could literally save a consumer hundreds of thousands of dollars if they knew how to do it).
3. There are so many ways that errors can occur that would affect your credit score. If the consumer were aware that their credit score was uncharacteristically low, they would be equipped to find and correct any errors.
4. Disclosure of credit scoring formulas would give Credit Scoring Companies security in that they would be certain that no other Credit Scoring Company had stolen their intellectual property.
5. Without knowledge, the consumer is powerless.
6. I truly feel that there are numerous errors in the various credit scoring systems. Disclosure would bring these errors to light and with consumer awareness, the companies would be forced to correct those errors.
I thank you for your consideration,
Steve |
| Steven Kallestad (Steve) | Wednesday, August 23, 2000 - 04:16 pm
I sent this letter via e-mail.
Nothing legislative will happen unless voters force the issue. Unfortunately, most people with credit problems don't have the money to form a lobby...
Sending this letter may help, it may not. But I sent mine in hopes that it would (contrary to my typical cynicism) Feel free to copy it and send it to your senators, congressmen, the FTC, the SEC (Yes Fair Isaacs has a monopoly, and they ARE abusing their power), or whoever else you might think is appropriate. It'll make you feel better for a little while (well a minute or two - but trust me, it's a very good minute) |
| Christine Baker (Admin) | Wednesday, August 23, 2000 - 04:30 pm
Great, really appreciate your postings.
It's amazing how many people say:
"I know I have good credit because I had a student loan that I paid off and I have a credit card."
Most people just have no clue. |
