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The Master Adverse Action AA Under the New Rules Thread

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What exactly does the new law say? Does it have to be the credit score used by them or could it be any credit score at all such as a fako score that lender would never use?


From what I have seen from most reports here regarding such letters, the score scale usually seems to be 150 to 950 which leads me to believe that they are reporting FAKO scores or one of the Next Gen FICO scores which I thought most lenders don't use.

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The Next Generation of Credit Scoring

Along with TransUnion and Equifax, the Experian Credit Reporting Agency has utilized FICO's NextGen scoring system with the introduction of the Experian/Fair Isaac Advanced Risk Model 2.0. The Advanced Risk Model features a score range of 150-950 and expands on the Classic scoring system by nearly doubling the evaluative variables used to predict an applicant's credit practices in the future.


Currently, the standard FICO model allows limited differentiation between varying degrees of "bad" credit, dividing consumers into 10 comparative scoring segments versus the 18 scoring segments used by the Advanced Risk Model to analyze risk patterns. This means that potential lenders would categorize minor payment lapses separately from serious debt infractions, instead of classifying all consumers with problematic credit accounts as negative high-risk profiles. The Advanced Risk scoring model expands the classifications of satisfactory credit, allowing creditors to approve more consumer profiles and increase profits while also offering precise predictions to reduce profit losses on future delinquent accounts.

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Bob, that's the same letter I got from GEMB too! I wonder if they are sending it out to everybody. How many lenders do you suppose are using this new scoring model?

If GEMB is using it, with Walmart's blessing, I imagine it's pretty mainstream, and a lot of institutions are using it.

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