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FOR IMMEDIATE RELEASE
20 March 01
STATEMENT OF USPIRG CONSUMER PROGRAM DIRECTOR EDMUND MIERZWINSKI ON FAIR ISAAC/EQUIFAX ANNOUNCEMENT ON CREDIT SCORING DISCLOSURE
"Mistakes in credit reports lead to mistakes in credit scores. PIRG studies show that about 1 in 3 credit reports contain serious errors. Credit scores are nothing more than numerical versions of credit reports. Mistakes in credit scores mean consumers either pay too much for credit or are denied credit. The best way to improve the accuracy of the credit scoring and reporting system is to give consumers free access to both their credit reports and credit scores. The credit score company Fair Isaac and the credit bureau Equifax shouldn't be praised for their new program disclosing credit scores for a fee, they should be criticized for the years they spent lobbying Congress and the Federal Trade Commission not to require that credit scores be disclosed as part of credit reports. The companies insultingly claimed consumers wouldn't understand credit scores. Actually, the only thing consumers wouldn't understand is why there were so many mistakes in their credit scores and credit reports.
We do commend the state of California for passage of last year's credit
scoring disclosure law, following the work of an unprecedented coalition
of realtors, consumer groups and the E-Loan Internet bank. California forced
Fair Isaac to announce its new disclosure program, now Congress has to make
credit scores part of credit reports, and require their disclosure for free.
U.S. PIRG will continue to work with Reps. Chris Cannon (R-UT) and Harold
Ford (D-TN) and Senator Chuck Schumer (D-NY), who have championed tough
federal credit score disclosure laws. The announcement by Equifax and Fair
Isaac is really part of a calculated campaign to prevent passage of federal
free credit scoring disclosure legislation."
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U.S. PIRG is the national lobbying office for state Public Interest Research
Groups. PIRGs are independent, non-profit, non-partisan consumer and environmental
advocacy groups active around the country.
LINK TO U.S.
PIRG's LATEST TESTIMONY ON CREDIT SCORING:
LINK TO
U.S. PIRG's LATEST REPORT ON CREDIT REPORT ERRORS