Show-Me State Times

U.S. Senator Josh Hawley has urged the Department of Justice's Antitrust Division to investigate Fair Isaac Corporation (FICO) over what he describes as anticompetitive practices. This request follows FICO's recent price hikes in the credit scoring market, which Senator Hawley claims are disproportionately affecting working Americans.

Senator Hawley stated, “FICO has abused its government-granted market power. It has repeatedly raised prices to access its scores in recent years. . . . Late last year, it raised score prices yet again from $3.50 to $4.95 per score for mortgage originations—a more than 40% increase.” He highlighted that these increases particularly impact lower-income borrowers, making it more challenging for them to buy homes.

Senator Hawley criticized FICO for using its dominant market position, noting that it holds a nearly 90% share in the business-to-business credit scoring market. He stated that this market share is bolstered by requirements for FICO scores in loans originated with various government entities. According to Hawley, the recent price hikes have significantly benefited FICO's profits and stock performance, while burdening borrowers.

The Senator pointed out that FICO’s CEO, William Lansing, received a $35 million compensation package in fiscal year 2024, a decrease from the $66 million the previous year. The company’s price increases have reportedly resulted in substantial profit growth. Lansing was quoted saying, “It’s still small in the scheme of things, but for us it was a big increase in price, in profit, revenue margin, all those things.”

Senator Hawley has requested that the Antitrust Division of the DOJ take immediate action to investigate FICO’s business practices, emphasizing the unfair impact on consumers.