WASHINGTON—The Department of Justice has opened a civil investigation against the Fair Isaac Corp., provider of the widely used FICO score.
The DOJ’s Antitrust Division is looking into FICO’s policies for signs of “potentially exclusionary conduct.”
Exclusionary conduct refers to a monopoly over an industry that creates a disadvantage for competitors. FICO has long been a namesake in consumer lending, and is the only credit scoring agency accredited by Fannie Mae and Freddie Mac, LowCards.com explained.
Lenders do have the option to choose whichever scoring method they prefer, including VantageScore from Equifax, Experian and TransUnion, LowCards.com noted.