09 LC
34 1983
House
Resolution 884
By:
Representatives Marin of the
96th
and Mitchell of the
88th
A
RESOLUTION
Urging
the United States Congress to study the FICA credit scoring system to determine
what adjustments need to be implemented in order to avoid the adverse affect of
lower scores on consumers during this economic downturn; and for other
purposes.
WHEREAS,
FICA scores (also referred to as FICO) are the most commonly used credit rating
system by lenders and other creditors and a consumer's FICA score not only
determines whether he or she receives a loan, but also how much of a loan and at
what interest rate; and
WHEREAS,
FICA scores are often used by mortgage companies, credit card companies, utility
providers, apartment communities, and even employers in order to determine the
credit worthiness or fitness of an applicant; and
WHEREAS,
after compiling data such as the consumer's late payments, accounts in
collection, current debt, and bill-payment history, the FICA score then compares
this information to other consumers and assigns a numerical score to the
borrower; and
WHEREAS,
many consumers' FICA scores are being adversely impacted due to the current
domestic and global economic downturn; and
WHEREAS,
due to lost jobs, late payments, credit limit reductions or cancellations by
credit card companies, and a host of other negative credit history examples,
FICA scores for many consumers are trending lower; and
WHEREAS,
this lowering of FICA scores results in consumers having their access to credit
curtailed or eliminated which results in a further weakening of the economy;
and
WHEREAS,
in order to restore access to credit for many hard working consumers Congress
should comprehensively study the FICA scoring system and determine how best to
adjust the system in order to alleviate the economic hardships caused by the
spiraling downward trend in the scoring.
NOW,
THEREFORE, BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA that this body does
hereby urge the Congress of the United States to study the FICA scoring system
used by creditors and make revisions as necessary to alleviate the economic
hardships caused by the current economic crisis.
BE
IT FURTHER RESOLVED that the Clerk of the House of Representatives is hereby
authorized and instructed to transmit an appropriate copy of this resolution to
each member of the Georgia Congressional Delegation.