Both sides claimed victory after a U.S. District Court judge dismissed some of the charges made by FICO, Minneapolis, in a lawsuit against VantageScore Solutions LLC, Stamford, Conn., and two of the three credit repositories.
Barrett Burns, president and chief executive of VantageScore said in an interview the suit was an expensive distraction to his company and he is glad it is substantially over.
FICO CEO Mark Greene said his company was fighting for "fairness and consumer protection.
At a time when consumers most need clarity regarding their creditworthiness, it's imperative that they understand whether or not the credit scores they purchase are industry-standard FICO scores or merely look-alike 'educational' scores not actually used by lenders to make lending decisions."
Mr. Burns said VantageScore is gaining acceptance and market share.
He added the dismissal of the false advertising claim was the biggest one that impacted the defendants.
Judge Ann Montgomery also dismissed antitrust allegations. The two defendant credit repositories issued statements.
"We are particularly gratified that the court found that VantageScore represented the 'very essence of competition,'" said Kerry Williams, Experian Group President of Credit Services and Decision Analytics.
Meanwhile, Jeff Hellinga, president of TransUnion's U.S. Information Services division, said, "The court's decision dispels a perception that there can be only one scoring model that holds relevance for lenders and consumers.
The outcome is a victory for the kind of choice, clarity and consistency that the marketplace demands and deserves."
Equifax had previously entered into a settlement with FICO.
FICO said it would appeal the dismissed charges after a trial over the remaining complaint. Mr. Burns said if FICO does go forward with the suit, VantageScore would see it in court.
