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Consumers' Credit Scores Dinged For Going to Bars

Consumers' Credit Scores Dinged For Going to Bars

Remember when you first started working and learned that your IT department had access to all of your emails? Some employees probably learned that the hard way, and now some credit card users are learning they're being punished for behavior they didn't know was being monitored.

The Federal Trade Commission (FTC) has filed a suit against card issuer CompuCredit for "deceptive marketing practices." A representative from the FTC said, "The company touted that cardholders could use their credit cards anywhere. What they didn't say was that you could be punished for specific kinds of purchases." Borrowers weren't aware that using their cards at tire and retreading shops, massage parlors, bars, billiard halls, and marriage counseling offices would hurt their credit.

CompuCredit uses its proprietary scoring system instead of FICO, and the issuer does not disclose to consumers that it uses behavior-based scoring. What do you think of purchasing behavior determining creditworthiness?


Join The Conversation
chatondeneige chatondeneige 9 years
Umm, my car has gotten new tires in the last few years. It's an 8 year old car, I live in a snowy area, OF COURSE I need new tires every few years. (at the least - to be honest, my dad takes care of that sort of thing for me.) So being responsible with regards to my car will ding my credit, as though I've been irresponsible with it? How ridiculous.
c-a-t-h c-a-t-h 9 years
What in the world do tires and bad money management skills have to do with each other? So bizarre....
SDTransplant SDTransplant 9 years
That is so wrong. I wonder if our government has a close partnership with this credit card company.
GlowingMoon GlowingMoon 9 years
This is terrible. Tire and retreading shop?? How does that affect one's credit worthiness? Besides, doesn't everybody who own a vehicle for any extended period of time have to replace tires?? Isn't that routine maintenance? I don't get it.
carhornsinapril carhornsinapril 9 years
lifestyle profiling, ugh.
ann418 ann418 9 years
That's awful! Does it take into account how much you have saved or maybe the fact that you have enough disposable income, maybe to go to a bar? This is ridiculous. I would be FURIOUS.
stephley stephley 9 years
I bet somewhere there's very very small print that allows this. It is utterly disgusting though.
karisaamy karisaamy 9 years
I agree with faerymagick - How can this be legal? It's not right.
faerymagick15 faerymagick15 9 years
how can this be legal?
MindayH MindayH 9 years
Didn't you do a poll about the correalation between drinking and earning more? Not that earning more has anything to do with credit, but, some successful and responsible people do go to bars to drink.
bellaressa bellaressa 9 years
Wow, I am shocked that this is happening. I am wondering how is this reported. Some doctors specially code their services and just have it as a standard "doctor's visit" and it's not specified unless you are being billed through an insurance. It seems intrusive in terms of medical.
Beauty Beauty 9 years
This seems creepy and wrong. Why should marriage counseling ding your credit?
mini_pixie mini_pixie 9 years
This is really strange! I can't believe that this would be acceptable. I mean, insurance companies give you policy rates based on lifestyle and health factors, but at least that's disclosed to you (or common enough knowledge)...
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