Cape News

U.S. Senator Josh Hawley (R-Mo.) has called upon the Department of Justice to investigate The Fair Isaac Corporation (FICO) for potential anticompetitive practices in the credit scoring market. In a letter addressed to Assistant Attorney General Jonathan Kanter, Senator Hawley expressed concerns about FICO's market dominance and price hikes that could adversely impact consumers.

Senator Hawley highlighted FICO's significant market share and government-granted monopoly, stating, "The credit score market is dominated by FICO, a for-profit company operated under a sweetheart deal from the federal government." He emphasized that FICO's actions, including substantial price increases, could burden homebuyers in an already challenging housing market.

FICO's recent price hikes, as mentioned by Senator Hawley, have raised alarms about potential negative consequences for consumers. The Senator pointed out that these cost increases may result in higher upfront costs or interest rates for borrowers, particularly affecting lower-income individuals seeking to purchase homes.

The concerns raised by Senator Hawley revolve around FICO's alleged abuse of its market power to prioritize corporate profits over the well-being of Americans. He urged the Antitrust Division to intervene and investigate FICO's practices to ensure fair competition and protect consumers from potential exploitation.

FICO's role in the credit scoring market, especially its influence on mortgage lending, has prompted Senator Hawley to call for a thorough examination of the company's conduct. With FICO's actions leading to a substantial rise in credit score costs and stock prices, the Senator's request for a DOJ investigation underscores the importance of upholding competition and safeguarding consumer interests in the financial sector.