Overview
- Sen. Josh Hawley launched a congressional investigation, sent letters to FICO and the FTC chair urging an agency review, and requested documents from the company.
- Hawley argues FICO wields monopoly power, citing an 88% operating margin and a five-year 100% annual growth rate in per-score fees as signs of weak competition.
- He highlights a 2026 doubling of the per-score charge to $10, estimating about $500 million in added industry costs that lenders pass to borrowers, with first-time buyers often paying for multiple credit checks.
- He points to FICO’s entrenched role, noting use by roughly 90% of lenders and decades as the only score accepted for loans sold to Fannie Mae and Freddie Mac, while a VantageScore alternative has not yet gone live.
- Benzinga reported no immediate FICO comment and a roughly 5.7% drop in the stock after the news, and no FTC or DOJ enforcement action has been announced.