Legacy advised earlier in the year about how Fair Isaac and Company had filed a lawsuit against all 3 major credit bureaus for implementing their own credit scoring system called Vantage Score. In July of this year, a judge ruled in the favor of the credit bureaus to proceed with their own scoring system.
The following is directly from TransUnion’s website “newsroom”.
VantageScore, which launched in March 2006, is the first scoring model of its kind to leverage a consistent scoring methodology across all three national credit reporting companies, bringing clarity to businesses and consumers through an easily interpreted numeric score, and choice to the marketplace through a highly predictive scoring option.
Following the launch, Fair Isaac Corp. filed suit, claiming the three national credit reporting companies, along with VantageScore Solutions, LLC, were engaging in unfair and anti-competitive practices that would harm FICO's brand. Last summer Fair Isaac Corp. agreed to drop Equifax as a defendant in the suit based on an individual settlement with that company.
"The court's decision dispels a perception that there can be only one scoring model that holds relevance for lenders and consumers," said Jeff Hellinga, president of TransUnion's U.S. Information Services division. "The outcome is a victory for the kind of choice, clarity and consistency that the marketplace demands and deserves."
***THIS COULD CAUSE A VERY INTERESTING CHANGE IN THE NEAR FUTURE ON HOW WE VIEW CREDITWORTHINESS*** TIME WILL TELL.