I’ve been tracking my FICO for the past year and I just noticed that my score dropped 40 points.  I find it amazing because over the last couple of months I’ve actually paid DOWN debt.   I paid down 50k worth of my mortgage, I unwound 25k of arbitrage and I paid off a new car I just purchased a few months ago.    I’ve been on a mission to covert from paper assets to tangible assets and the result has been a lower FICO score.   I just don’t get it.

I’m still waiting on some brave souls to file a class action lawsuit against FICO for these weird anomalies that damage people’s reputation and credit worthiness.   At the very least, there should be a way to opt out of this madness.   I don’t want these people “scoring” me if they’re doing it all wrong.

Fortunately, it looks like some of these “rating” agencies are starting to get sued.   Bloomberg is reporting that Moody’s is getting sued and I hope they’re taken to the cleaners:

By Joel Rosenblatt

Oct. 30 (Bloomberg) — Moody’s Corp. directors and officers were sued by shareholders and accused of deliberately overrating asset-backed securities at the world’s second-largest credit- rating company.

The Louisiana Municipal Police Employees Retirement System filed the so-called derivative suit today in New York on behalf of the company, naming Moody’s as a nominal defendant. The pension system claimed that, as a result of misconduct, “trillions of dollars of highly risky securities were sold to investors that should never have seen the light of day.”

U.S. House investigators last week released e-mails from Moody’s employees telling executives that issuing dubious ratings to mortgage-backed securities made it appear they were incompetent or “sold our soul to the devil for revenue.”

I wonder if there’s an insider at FICO saying that their models are broken but no one has the courage to speak up.   There’s no way to find out why my FICO fluctuates from 760 to 720 in a matter of months because everything this company does is proprietary and “secret.”  And no, I haven’t been late on any payments because I’ve pretty much paid off a great deal of debt so there’s nothing to be late on.

I’m counting the days till FICO gets taken to the cleaners, we just need someone to crack the case open….