Petition Closed

Our credit has been occupied. We want it back!

Tell the credit bureaus: “Adjust my FICO credit score to correct for the impact of the housing crash.”

The credit scores of millions of Americans have plunged in the last few years due to economic hardship caused by the housing crisis. Many home owners have had no choice but to miss payments, pursue short sales, or go into foreclosure.

Now they find themselves with FICO credit scores that no longer reflect their true consumer creditworthiness (see TransUnion study below). The system no longer evaluates borrowers on their merits, but rather ranks them based on outdated and rigid rules that are unresponsive to customer needs and to a changed economic environment.

One thing that is hindering recovery from the housing crash and credit crisis is that, for years now, banks have failed to effectively assist many struggling borrowers, despite big bank bailouts by the American people. Banks’ illogical requirements for missed mortgage payments in order to offer help, their reluctance to modify loans, in addition to complex and lengthy processes for short sales -- all have shattered the credit scores of millions.

Many Americans with low credit scores are responsible borrowers who are willing but unable to invest in the economy. However, lending is being artificially suppressed by outdated policies perpetuated by credit bureaus and banks. The unresponsiveness of credit bureaus amounts to collusion with the banks to keep the cost of borrowing high.

Higher credit scores would increase lending and spending, revitalizing the economy. Current low credit scores result in more consumers paying higher interest rates, and in lenders continuing to profit even more from the 99%. This is just adding insult to injury.

Our Solution

We propose 2 solutions and request prompt action by all 3 credit bureaus in order to stop the outdated and flawed standards that are currently used for reporting consumer creditworthiness in the context of the housing crisis.

1. Significantly shorten credit score recovery times after short sales, deed-in-lieus and foreclosures.
and/or
2. Set up a system that promptly handles requests for credit restoration to pre housing-crisis levels, based on: a) Proving a valid recession-related reason, such as a short sale, deed-in-lieu, or foreclosure; and b) Responsibly meeting other consumer credit obligations, such as auto loans and credit card payments.

Please sign this petition to urge credit bureaus to stop distorted reporting of consumer creditworthiness! Say “No” to unfair penalization due to institutional negligence. Restore credit score sanity!


Want Some Additional Facts?

TransUnion Study: “Mortgage-Only Defaulters Not as Risky as Expected”
As a TransUnion study confirmed in 2011, “consumers who only defaulted on their mortgage during the economic recession were far better risks than those consumers who went delinquent on multiple credit accounts.” “There appears to be a pocket of opportunity among mortgage-only defaulters that is not the result of excess liquidity, but rather the unique circumstances of the recent recession," said Steve Chaouki, group vice president in TransUnion's financial services business unit. See entire article and study outcomes at: http://www.marketwire.com/press-release/Life-After-Foreclosure-Study-Mortgage-Only-Defaulters-Not-as-Risky-as-Expected-Says-1517966.htm

Facts from www.myfico.com:
• [Your FICO score is] The factor used to determine your mortgage rates, car loans and credit card terms.
• 90% of the largest banks use your FICO® credit score for credit decisions.
• A 100 point difference in your FICO® score could mean over $40,000 extra in interest payments over the life of a 30 year mortgage on a $300,000 home loan.

Photo Credit: creditrepair.org

Letter to
CEO, Experian Group Donald A. (Don) Robert
CFO, Experian Group Paul Brooks
CFO, FICO Michael (Mike) J. Pung
and 13 others
CEO, FICO Mark Greene
Group Vice President, TransUnion Steve Chaouki
Sr. Director, Corporate Communications, TransUnion Clifton O'Neal
Public Relations Manager, TransUnion Dave Blumberg
Public Relations Director, Experian Group Susan Henson
Senior Vice President, Public Affairs, Experian Group Gerry Tschopp
CFO, Equifax, Inc. Lee Adrean
CEO, TransUnion Siddharth N. (Bobby) Mehta
CFO, TransUnion Samuel Hamood
Senior Vice President, Chief Analytics Officer, FICO Dr. Andrew N. Jennings
CEO, Equifax, Inc. Richard F. Smith
Public Relations, Equifax David M. Rubinger
US Public Relations, FICO Jason Sprenger
I just signed the following petition addressed to the three credit bureaus: Experian, Equifax and TransUnion.

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Adjust FICO credit scores to correct for the impact of the housing crash.

The credit scores of millions of Americans have plunged in the last few years due to economic hardship caused by the housing crisis. Many home owners have had no choice but to miss payments, pursue short sales, or go into foreclosure.

Now they find themselves with FICO credit scores that no longer reflect their true consumer creditworthiness (see TransUnion 2011 study, “Mortgage-Only Defaulters Not as Risky as Expected”: http://www.marketwire.com/press-release/Life-After-Foreclosure-Study-Mortgage-Only-Defaulters-Not-as-Risky-as-Expected-Says-1517966.htm). The system no longer evaluates borrowers on their merits, but rather ranks them based on outdated and rigid rules that are unresponsive to customer needs and to a changed economic environment.

One thing that is hindering recovery from the housing crash and credit crisis is that, for years now, banks have failed to effectively assist many struggling borrowers, despite big bank bailouts by the American people. Banks’ illogical requirements for missed mortgage payments in order to offer help, their reluctance to modify loans, in addition to complex and lengthy processes for short sales -- all have shattered the credit scores of millions.

Many Americans with low credit scores are responsible borrowers who are willing but unable to invest in the economy. However, lending is being artificially suppressed by outdated policies perpetuated by credit bureaus and banks. The unresponsiveness of credit bureaus amounts to collusion with the banks to keep the cost of borrowing high.

Higher credit scores would increase lending and spending, revitalizing the economy. Current low credit scores result in more consumers paying higher interest rates, and in lenders continuing to profit even more from the 99%. This is adding insult to injury.

We propose 2 solutions and request prompt action by all 3 credit bureaus in order to stop the outdated and flawed standards that are currently used for reporting consumer creditworthiness in the context of the housing crisis.

1. Significantly shorten credit score recovery times after short sales, deed-in-lieus and foreclosures.
and/or
2. Set up a system that promptly handles requests for credit restoration to pre housing-crisis levels, based on: a) Proving a valid recession-related reason, such as a short sale, deed-in-lieu, or foreclosure; and b) Responsibly meeting other consumer credit obligations, such as auto loans and credit card payments.

Please take this opportunity to listen to consumers and do the right thing. Thank you for your time.

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Sincerely,