Fair Isaac Corp. said Thursday that it has filed an antitrust lawsuit against three agencies that have partnered to launch their own credit-scoring system, VantageScore.
Fair Isaac said the three agencies — Equifax Inc., Experian Information Solutions Inc. and TransUnion — are using anti-competitive practices to market their new product.
Minneapolis-based Fair Isaac has its own credit-scoring system, FICO. All three defendants have the ability to set a price for what a lender pays for FICO scores, and can also set prices for VantageScore. This ability allows the companies to unfairly promote their product by manipulating pricing, Fair Isaac argues.
"We have competed against the credit-report agencies’ scoring products for many years, and we are happy to compete on a level playing field," said Tom Grudnowski, CEO of Fair Isaac, in a statement. "However, the recent agreement between the three powerhouse agencies unfairly threatens our ability to compete and inhibits the ability of consumers and lenders to enjoy the benefits of continued innovation, choice and competition in the credit-information marketplace."
Source: Yahoo! News