Senator Hawley Calls on DOJ to Investigate FICO for Anticompetitive Practices, Repeated Price Hikes

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Thursday, April 03, 2025
U.S. Senator Josh Hawley (R-Mo.)called onthe Department of Justice’s (DOJ) Antitrust Division to open an investigation into the Fair Isaac Corporation (FICO) regarding its anticompetitive practices. The letter comes after FICO—which is the only real competitor in the credit scoring market—hiked prices yet again, increasing the burden on working Americans. Senator Hawley previously called on President Biden’s DOJ to take action, but they failed to do so.“FICO has abused its government-granted market power,”wrote Senator Hawley.“It has repeatedly raised prices to access its scores in recent years. . . . Late last year, it raised score prices yet again from $3.50 to $4.95 per score for mortgage originations—a more than 40% increase.” Making matters worse,Sen. Hawley explained,“the burden of those increases has been borne by borrowers, especially lower-income borrowers, who now find it harder to purchase a home. This is simply unacceptable.”Senator Hawley concluded,“FICO has exploited working Americans with its monopoly power for too long. I therefore urge you to immediately open an investigation into the company for its potentially anticompetitive behavior.Read the full letterhereor below.April 3, 2025Gail SlaterAssistant Attorney GeneralU.S. Department of Justice, Antitrust DivisionMain Justice Building, Room 1137950 Pennsylvania Avenue, NWWashington, DC 20530Dear Assistant Attorney General Slater:I write to renew my call for the Antitrust Division to investigate the apparently anticompetitive practices of the Fair Isaac Corporation (FICO). Last year, I urged your predecessor to open such an investigation. Since then, FICO—which is the only real competitor in the credit scoring market—has only continued to increase prices to access its credit scores. Antitrust scrutiny from your office is warranted.FICO dominates the business-to-business credit scoring market with a roughly 90% market share. It enjoys a sweetheart deal from the federal government wherein its credit scores are required for loans originated with multiple government entities. But FICO has abused its government-granted market power. It has repeatedly raised prices to access its scores in recent years, which has led to massive hikes for some lenders.Late last year, it raised score prices yet again from $3.50 to $4.95 per score for mortgage originations—a more than 40% increase FICO’s price hikes have led to prodigious profits for the company, but at the expense of working Americans. The company’s net income almost tripled from 2019 to 2024. Its stock price has performed in the top 5% of the S&P 500 over the past decade. And its CEO, William Lansing, received in a $35 million compensation package in fiscal year 2024, down from $66 million in total compensation the year prior. Of the price increases, Lansing has said: “It’s still small in the scheme of things, but for us it was a big increase in price, in profit, revenue margin, all those things.” Meanwhile, the burden of those increases has been borne by borrowers, especially lower-income borrowers, who now find it harder to purchase a home. This is simply unacceptable.FICO has exploited working Americans with its monopoly power for too long. I therefore urge you to immediately open an investigation into the company for its potentially anticompetitive behavior.Sincerely,Josh HawleyUnited States Senator
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