CHLA Calls Attention to Congressional Letter Calling for DOJ Investigation into FICO Pricing
(Washington, D.C.) – The Community Home Lenders of America (CHLA) calls attention to the 34 Senate and House Members for sending a letter on affordable housing Wednesday to President Biden – requesting that the Department of Justice investigate FICO for anti-competitive behavior.
The Congressional letter stated:
“The Department of Justice (DOJ) and CFPB should address anti-competitive behavior in the credit scoring market that jacks up prices for consumers. The DOJ should investigate whether FICO and others are engaging in behavior that violates federal antitrust law. And the CFPB should explore potential remedies to exploding credit reporting costs, including a cap on fees that credit reporting agencies can charge and interoperability requirements that would allow consumers to move their credit scores without new fees. FHFA has already taken action to
promote competition among the credit bureaus and increase accuracy in credit scoring by transitioning to a “bi-merge” system that requires two, instead of three, credit reports from the nationwide credit reporting agencies. But the Administration can and should do more to lower credit reporting costs for everyday Americans.”
CHLA recently sent a letter to the Illinois Attorney General, similarly requesting them to consider an antitrust investigation into FICO’s practices.
CHLA first called attention to the lack of competition in the credit report industry and FICO 300% price hike in November 2022 – and released a White Paper on FICO pricing – in January 2024 (with an April update).