Hey! I couldn't be happier that at least they are LOOKING at revising the FICO system. For years I have felt that the old methods were neither fair nor accurate. Truthfully, I think the models should be constantly monitored and updated as delinquency patterns change and evolve. I have seen 700+ fico with a BK only a year out and others with dismal score but only minor dings.
Ignoring a repo might be bad, encouraging car owners to let the car go into default, but ignorning collections accounts should be anything under $300-$500 (not the $100 they are using). There should also be a way to recognize multiple hits of what looks to be a different collection account but is really the same bill with several agencies, or several variation of account numbers, etc.
There should also be a way to add utility company, cell phone and auto insurance accounts to the report and include those payment histories in the score. I have worked with many first time buyers and young couples trying to buy who pay their bills, don't want to have alot of outstanding credit, but are stung by a low score due to lack of reporting. I think these buyers are excellent risks and not well represented by the system. Sure FHA will allow a non-traditional credit history, but these are common accounts to most Americans and not necessarily "non-traditional". Why punish the conversative consumer with a poor score but money in the bank?
The next step will be to make the big three credit reporting agencies clean up their process and keep information in our files accurate and up-to-date. Despite the Fair Credit Reporting Act, I think they put the burden on the consumer to make sure the report is correct and do not do enough to keep the creditors honest.