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Letter from CRA to Furnishers- intercepted


divemedic
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I received this email sent from one of the CRA's, apparently to furnishers/ creditors. I don't know how I got on this mailing list, but I thought I would pass it along. Names have been deleted for legal reasons.

Your business partners here at ***** realize that the more interest you charge, the more you make. We realize that the more money we help you make, the more likely it is that you will buy our services. How can we both benefit? We have the answer! In the recent past, we have concluded several studies that will better help you spot those high risk borrowers.

For example, did you know that of all consumers that defaulted on their credit obligations:

67% of them were born in a month that contained an 'R' in it?

71% of them were born on a weekday?

75% of them were not born in a leap year?

That means 36% of consumers are in the highest risk category of being born on a weekday not during a leap year in a month with an R in it.

Obviously, these consumers are one you will want to keep an eye on! That is why we have pressured FICO to add the following negative codes to their scoring formula:

Code 6702

You were born during a month with an R in it. Studies have shown that twice as many consumers with an R in their birth month default on their credit obligations than those born in a month without an R in it. The formula takes this into account whenever it is noted that your birth month has an R in it.

Code 6703

You were born on a weekday. Studies have proven that five out of every seven consumers who default on their credit obligations were born on a weekday. This factor appears when the fomula calculates the consumer was born on a weekend. Perhaps your mother wanted to give birth during a weekday to avoid going to work, so we have lowered her score as well.

Code 6704

You were not born during a leap year. Of consumers defaulting on their obligations, 3 out of 4 them were not born during a leap year. The score reflects this. Additionally, if you were born on a day ending in a 'Y', the effects of this factor are doubled.

A person with all three of these codes fits into the high risk model so well, that he or she will take a 200 point deduction from their FICO score.

Thank you

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It has to be a joke. *Read it carefully*.

Its an example of how you can make statistics "prove" anything you want.

Of course 67% of defaults are people born in a month with R in. Thats because approximately 67% of the months HAVE an R in them. Of course 5 out of 7 defaults are from people born on a weekday. Thats because 5 out of 7 days ARE weekdays. Ad nausem....

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