I recently subscribed to TrueCredit while applying for a new mortgage. I had two collection accoutns on my file and paid them in full before closing. I noticed that each time a collection account reported as paid on their scoring system, it deducted 30 points from my already borderline score. I went from a score of 660 to 603 in two weeks. Further, it states that htere is a NEW collection reporting on my file.
If you refer to the Fair Issac website the old FICOscore used to do the same thing and it was identified as a glitch in the model and has since been corrected. Why is TransUnion selling this defective model to banks who use their product to determine your interest rates and limits? Why are they being allowed to do so? I've written to their media relations as they absolutely refuse to give you a corporate contact and am still waiting on their response.
The FCRA should have some say in the way that this info is reported as it causes consumers to face unneccsary interest rate hikes as well as denial for credit that they would otherwise qualify for.
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