Executive Summary Household debt is at a record high, but as a share of GDP it is way down from its 2008 peak. The lower debt share today suggests that households are in better shape. But when we look at … Continue reading →
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A new proposal from the Consumer Financial Protection Bureau could spark a fight over what should happen to consumers’ old debts. Debt collectors lose the right in many states to sue consumers after their debt reaches their statute of limitations, … Continue reading →
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CAPE GIRARDEAU, MO (BBB) — The Better Business Bureau urges consumers to learn what collection agencies legally can and cannot do and to stay vigilant against debt collection scams. By law, debt collectors can contact consumers by phone, letter, email … Continue reading →
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Think debt collection and the inevitable image is bailiffs, dressed to intimidate at the door carrying court warrants and demanding money. It’s an industry that has struggled to change its image but in Norway, at least, that is beginning to … Continue reading →
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The U.S. Bankruptcy Court for the Eastern District of Pennsylvania recently held that a debtor alleged a plausible claim against a mortgage loan servicer under the federal Fair Debt Collection Practices Act (FDCPA) based on the servicer’s proof of claim … Continue reading →
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The Fair Isaac Corp (FICO) scoring model is a calculation of various pieces of credit data by which your three-digit credit score is based. The term “FICO score” can be used for a wide range of different scores provided by the company because there are several active versions of the scoring model. Every few years, the company updates or changes the way the score is calculated.
Coming this Summer, FICO is releasing two new credit scores, the FICO Score 10 and the FICO Score 10T. FICO suggests that by adopting the FICO Score 10 Suite, a lender could reduce the number of defaults in their portfolio by as much as ten percent among newly originated bankcards. The reduction in defaults is even higher for newly originated mortgage loans, at 17 percent compared to the current version used by that industry.
The FICO Score 10 will place more emphasis on personal loans, penalizing borrowers who take on personal loans to consolidate credit card debt and then choose to rack up more debt. The FICO Score 10T will look at “trended data” for the past 24 months to see how a borrower is managing their debt and will reward people who are working to pay off their debts but could cause people’s scores to drop if they have taken on more debt over time.
These models will likely help people with high credit scores have even higher scores and those with lower scores fall a little lower producing a bigger gap between low and average to high scores. It’s important to note that many lenders are still using old models, and this may not affect many people right away but as lenders start to transition it will be a bigger deal.
Check out the video below featuring, Connie Thompson of KOMO 4 News, Ted Rossman of Bankrate and Bruce McClary from the NFCC.
The post What You Need to Know About the Latest FICO Score Changes appeared first on NFCC.
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If you received a letter from RIP Medical Debt and “The Mystery Hour” saying your medical debt has been forgiven, don’t assume it’s a scam. Letters have been sent out to households throughout the Ozarks, informing folks that they no … Continue reading →
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Friday, February 21, 2020 Recently, the Northern District of California joined other courts in more closely scrutinizing class certification motions in TCPA cases. In a case involving an automated phone call by a loan servicer regarding Plaintiff’s student loans, the … Continue reading →
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skynesher | E+ | Getty Images If you’re like many Americans, you’re carrying a balance on your credit cards. And the candidate you choose in November for president could have an effect on how well you grapple with those debts. … Continue reading →
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Managing your money isn’t easy, and one of the most challenging parts is noticing blind spots before they become problematic. Nobody has all the answers when it comes to finance, but sometimes even one innocent mistake can lead to a … Continue reading →
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