Fair Isaac Sues Credit Bureaus over Score Competition.

MINNEAPOLIS -- Fair Isaac Corp. here has filed a lawsuit in the Federal District Court in this city against the three major credit repositories as well as VantageScore Solutions LLC alleging they violated antitrust laws and engaged in unfair competitive practices.

The issue at hand is whether VantageScore, a product designed by the three credit bureaus to standardize the scoring model inhibits the sale of FICO scores.

A statement from Fair Isaac claims that the three repositories could manipulate the credit score price, sales and distribution process to promote the VantageScore product over the FICO score or any other credit scoring product.

The credit reporting agencies, it said, sell and distribute FICO scores to lenders, own the consumer data on which the score is created and have the ability to set the price a lender pays for a FICO score and a VantageScore.

Tom Grudnowski, chief executive of Fair Isaac, said in the statement, "The three credit reporting agencies have been our primary U.S. distribution partners for Fair Isaac's scores for more than 15 years. Now, the credit agencies are using their position to drive adoption of their own score to the detriment of our competing FICO score product and in conflict with their obligations to distribute our product."

Another issue Fair Isaac is raising involves the use of a credit score product with a range that overlaps the trademarked FICO score range of 300 to 850, contending it is an attempt to profit from confusion caused by the similar score ranges, a trademark infringement and a violation of fair trade laws.

"Misleading and confusing marketing claims do not serve customers' best interests," Mr. Grudnowski said.