Volkswagen software cheats, FICO, PNC, & Equifax software just sloppy

Side By Side comparison

While Volkswagon was getting headlines PNC, Equifax, & FICO were creating massive headaches for me with their sloppy software. 

Recently due to multiple failures in our banking and credit industry, an error on my credit report caused my credit score to plummet like a brick. I initiated a dispute with all three agencies and had the bad data removed, or so I thought....

My score seemed to return to where it should be except when FICO used my Equifax data to score me. It took me a while to pinpoint the problem, but as you can see in the graphic (click on it to enlarge), Despite having an account that is closed and a 7 year history of no late payments, somehow my current status was "Not more than four payments past due." In other words I had a pretty recent 120 days past due (huge penalty on credit score) depending on how this data was evaluated. Looks like someone at Equifax or PNC bank failed to update the status after the late payments were removed. Guess what FICO did with this data? They score me as if I am 90-119 days past due on this account instead of "current." Not pretty... at all...

a 20-40 point drop in credit score and why it is this an issue with FICO, Equifax, & PNC software

If I have never been late paying on this account (and now it is closed), how could the current status be 90-119 days past due? Both of these statements can't be true at the same time. This is where the robot's says "does not compute" and his head explodes in a sci fi movie. In the software world your computer or website freezes. Software developers make a note of the failure and add code to handle a "paradox" when it occurs. In this case all 3 software programs should have done something better than issuing full penalty to me (the consumer). PNC Bank's software should have prompted immediate human intervention, Equifax's software should have required an immediate verification, Fico's software should not have scored me as if I were a 120 day late high risk borrower.

FICO used the "current status" when it scored me despite being in direct contradiction with a 7 year history of no late payments. Properly written software would have recognized that there was a problem in the credit file and either erred on the side of the consumer, returned a value of "unable to generate score due an invalid data set," or prompted some sort of manual review. Instead, I was scored as a loser and have paid a huge penalty on my FICO score as a result (close to a 40 point drop). 

Of course FICO blames the issue on PNC Bank & Equifax who provided the incorrect and conflicting data, but any amateur programmer would realize that this is a major problem and the values should have been rejected. Good programming recognizes this kind of paradox (regardless of whose fault it is) and handles it. It's why your calculator won't try to divide by zero. Responsible companies take care of issues like this when it is brought to their attention. Regrettably FICO could care less and has done so on more than one occasion (see links below). And yes, I sent emails and made phone calls. 

In the course of my research about my discovery, this isn't the first time FICO has been made aware of problems like this and ignored them.

Currently it would seem as though they answer to nobody despite bragging that they directly influence the decisions of 90% of top lenders. For that reason, I hold them even more accountable than PNC and Equifax, as those two don't affect 90% of all consumers. The Fair Credit Reporting Act fixed issues with Credit Reporting Agencies lax attitude toward reporting errors and it's time for anyone as large as FICO scoring people as winners or losers for decisions that impact consumers in so many ways to be held accountable​.

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