ContentDesk) March 25, 2004 — Mr. Foster had discharged his debts through a Ch. 7 bankruptcy in 1999, but several creditors failed to update their credit reporting to delete the discharged balances. They also did not report the accounts as discharged, as required by the FCRA. Fair Isaac’s FICO credit scores are utilized in over 75% of all credit decisions and the scoring software includes those incorrect balances in the score calculations.

One reported a fictitious balance for the discharged account, resulting in a dismal 623 FICO credit score. When they finally corrected the balance and status, Bank One re-aged the First USA account. In November 2003, they reported the incorrect Date of Last Activity of “03/2003.” The resulting FICO score was only 664, 5 years after the bankruptcy and despite Mr. Foster’s excellent credit history and no new derogatory accounts. The FICO scores rated the account as a default in 3/03 instead of 1999, severely lowering the score.

Baker publishes several credit related web sites including the blog about her own suit at www.creditsuit.org/ and she spent several years researching credit scoring and reporting. She reviewed Mr. Foster’s many futile disputes and encouraged him to file suit.In February 2004 Ms. Baker reviewed a Trans Union credit report with a 726 FICO score only 2 years after the bankruptcy filing. Recently she posted her affidavit in support of damages due to incorrect credit reporting after bankruptcy at www.creditcourt.org/bk-affidavit.htm for use by consumers.

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