Posted by Lending Club :: June 12, 2007 @ 11:52 am

We want to update you all on our story about a new practice where companies employ questionable tactics called piggybacking to raise customers’ FICO scores for a large fee. Companies have been “fixing” the credit of people with low FICO scores by adding them as authorized users on credit cards owned by people with excellent credit. These companies have also been charging an arm and a leg for the service: one customer paid a company $1,800 for three credit card spots in an attempt to raise his score. Yikes!

We are glad to report that in a necessary move, Fair Isaac, the owner of FICO scoring, has announced that they are moving swiftly to update their scoring model to eliminate this practice. Lending Club has complete confidence in Fair Isaac, and we will use their updated scoring model when it becomes available.