Politics
James Uthmeier issues civil subpoena to FICO credit ranking company
Uthmeier said FICO has until Aug. 5 to respond to Florida’s subpoena for pricing information.
Attorney General James Uthmeier is launching a civil investigation into the company at the forefront of issuing consumer credit risk reports.
Uthmeier says he has started a “civil investigative demand” and issued a civil subpoena to Fair Isaac Corp. (FICO). That’s the company behind the FICO score that’s used by lenders across America to determine credit risk. FICO is based in Bozeman, Montana.
The company is being investigated by Florida’s top prosecutor amid questions about whether FICO has engaged in anticompetitive conduct. Uthmeier said he’s investigating to see if Florida’s Antitrust Act has been violated.
“Floridians deserve fair access to credit — not a system controlled by one company that repeatedly jacks up prices and blocks competition,” Uthmeier said in a news release.
“These skyrocketing costs are passed directly to consumers, making it harder for families to buy homes, finance cars, and secure essential services. My office will not tolerate monopoly abuse that harms Florida families.”
He went on to say that FICO has maintained that monopoly for decades in the credit scoring market. Uthmeier said prices for credit scoring in recent years have gone up dramatically. He went on to say that might include predatory pricing, illegal product “bundling,” exclusionary contracts with major credit bureaus, and efforts to block competitors.
Uthmeier said his case is an offshoot of an ongoing federal antitrust case looking into antitrust litigation. Republican U.S. Sen. Josh Hawley of Missouri has also raised questions about FICO and the company’s pricing practices.
Uthmeier’s request to FICO seeks all previous documents submitted in the federal case, as well as internal assessments of market share, license agreements and contracts with credit bureaus, and communications with those credit bureaus about competitors. The requests are also asking for pricing histories for FICO scoring services and products.
The requests also include questions about FICO’s commitment to antitrust compliance and training along with internal antitrust reviews in the company.
Uthmeier said FICO has until Aug. 5 to comply with his demand.
