Sen. Hawley Investigates FICO's Price Increases
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy FICO?
Source: seekingalpha
- Price Increase Investigation: Senator Hawley has sent a letter to FICO indicating his intention to investigate the company's price hikes on credit scores widely used in the mortgage lending industry, asserting that these increases disproportionately burden first-time homebuyers in an already strained market.
- FTC Involvement Suggested: In his letter, Hawley urged the Federal Trade Commission (FTC) to also investigate FICO for unfair competition and deceptive practices, highlighting a strong commitment to consumer rights that could lead to greater industry regulation.
- Market Reaction: FICO's stock fell 5.7% during Monday's regular trading session, reflecting investor concerns about the company's future profitability amid political scrutiny and potential regulatory investigations.
- Industry Criticism: Bill Pulte from the Federal Housing Finance Agency criticized FICO's pricing model, calling for a more economical approach, indicating widespread dissatisfaction in the market that could impact FICO's reputation and customer base.
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Analyst Views on FICO
Wall Street analysts forecast FICO stock price to rise
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 1127.620
Low
1700
Averages
2126
High
2500
Current: 1127.620
Low
1700
Averages
2126
High
2500
About FICO
Fair Isaac Corporation is an applied analytics software company. The Company is focused on using predictive analytics and data science to improve operational decisions. The Company operates through two segments: Scores and Software. The Scores segment includes the Company's business-to-business scoring solutions and services which give its clients access to predictive credit and other scores. This segment includes its business-to-consumer scoring solutions, including its myFICO.com subscription offerings. The Company’s Software segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process, such as account origination, customer management, customer engagement, fraud detection and marketing as well as associated professional services. This segment includes FICO Platform, a modular software offering designed to support advanced analytic and decision use cases as well as stand-alone analytic and decisioning software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sen. Hawley Investigates FICO's Price Increases
- Price Increase Investigation: Senator Hawley has sent a letter to FICO indicating his intention to investigate the company's price hikes on credit scores widely used in the mortgage lending industry, asserting that these increases disproportionately burden first-time homebuyers in an already strained market.
- FTC Involvement Suggested: In his letter, Hawley urged the Federal Trade Commission (FTC) to also investigate FICO for unfair competition and deceptive practices, highlighting a strong commitment to consumer rights that could lead to greater industry regulation.
- Market Reaction: FICO's stock fell 5.7% during Monday's regular trading session, reflecting investor concerns about the company's future profitability amid political scrutiny and potential regulatory investigations.
- Industry Criticism: Bill Pulte from the Federal Housing Finance Agency criticized FICO's pricing model, calling for a more economical approach, indicating widespread dissatisfaction in the market that could impact FICO's reputation and customer base.
See More
Senator Hawley Launches Investigation into FICO's Pricing Practices
- Investigation Launched: Senator Josh Hawley announced an investigation into FICO's pricing practices in the mortgage market, highlighting that price increases disproportionately affect Americans with lower incomes, indicating significant scrutiny of the company's pricing strategies.
- Financial Performance Contrast: While FICO claims its historical pricing is 'underpriced,' its total revenue for fiscal year 2025 reached nearly $2 billion, with the Scores segment generating $1.17 billion at an operating margin of approximately 88%, starkly contrasting the justification for its pricing strategy.
- Market Competition Concerns: Hawley questions whether FICO's pricing is justified by competitive market forces, noting that an 88% operating margin and a 100% compound annual growth rate in per-score pricing over five years are not indicative of a competitive market, suggesting potential monopolistic pricing behavior.
- Stock Price Reaction: Following the announcement of the investigation, FICO's shares fell nearly 6% on Monday, reflecting market concerns over the company's pricing strategies and potential legal risks, with the stock down 37% year-to-date in 2026.
See More
Customer Spending Declines Amid Ongoing Financial Pressures
- Spending Decline: In January 2026, average customer spending fell to £755, a 9.4% month-on-month decrease and 1.8% lower than January 2025, indicating ongoing financial pressures that compel customers to prioritize credit card payments.
- Increased Missed Payments: Although the overall balance paid increased by 1.4% month-on-month to 33.9%, it remains 6.7% lower than January 2025, suggesting that consumers are under more financial strain, necessitating enhanced intervention from risk and collections teams.
- Credit Limit Overages: The number of accounts exceeding their credit limits rose by 6% month-on-month and 6.2% year-on-year, providing further evidence of persistent financial pressures, particularly amid growing economic uncertainties.
- Risk Management Challenges: With a 14.3% month-on-month increase in accounts with two missed payments, this indicates potential escalation of financial stress among vulnerable customer segments, prompting collections teams to adopt proactive intervention strategies to mitigate default risks.
See More
Consumer Spending Declines as Credit Card Delinquencies Rise
- Declining Spending Trend: In January 2026, consumer spending fell by 9.4% month-on-month to an average of £755, which is 1.8% lower than January 2025, indicating ongoing financial pressures that may further weaken consumer confidence.
- Increase in Delinquency: The number of customers missing payments increased month-on-month, particularly with a 14.3% rise in accounts with two missed payments, suggesting escalating financial stress among vulnerable customer segments that could impact future credit risk management.
- Credit Card Balance Changes: Although credit card balances slightly decreased by 0.6% in January 2026, they remain 4.8% higher year-on-year, indicating a heavier burden on consumers, necessitating proactive intervention strategies from risk and collections teams to address potential default risks.
- Limited Improvement in Payment Rates: The overall balance paid was 33.9%, which is a 1.4% increase month-on-month but still 6.7% lower than January 2025, reflecting the ongoing financial strain on consumers that affects credit card usage and market stability.
See More
Three Stocks Charlie Munger Would Buy Now
- S&P Global's Resilience: With a market cap of $127 billion and a current price of $424.43, S&P Global's 65% gross margin and 43% operating margin highlight its strong profitability, making it attractive even with a P/E ratio of 29, close to the market average.
- Fair Issac's Profitability: Fair Issac boasts an impressive 83% gross margin and a staggering 394% increase in free cash flow over the past decade, now at $718 million, despite a P/E ratio of 44, which is above the market average, its current price of $1,126.34 presents a compelling investment opportunity.
- Home Depot's Market Position: As a leader in the home improvement sector, Home Depot has a market cap of $319 billion, and its current price of $320.75 is near a 52-week low; however, its stable 32% gross margin and over $2 billion in quarterly free cash flow demonstrate strong financial fundamentals.
- Investor Opportunities: In the current market environment, Charlie Munger would likely advise investors to consider S&P Global, Fair Issac, and Home Depot, particularly as their stock prices are at relatively low levels, showcasing long-term investment potential.
See More
Charlie Munger's Preference for Discounted Quality Stocks
- S&P Global Value: Charlie Munger would be impressed by S&P Global's appeal, boasting over 150 years of history, with an average gross margin of 65% and an operating margin near 43%, showcasing its strong profitability and market position.
- Fair Issac's Competitive Edge: Fair Issac holds a significant position in the loan industry, with its FICO scoring system determining eligibility and rates, achieving an 83% gross margin and a staggering 394% growth in free cash flow over the past decade, now at $718 million, highlighting its exceptional profitability.
- Home Depot Investment Opportunity: Despite Home Depot's stock trading near a 52-week low and a net debt increase of over 250% to $64 billion in the past decade, its stable 32% gross margin and over $2 billion in quarterly free cash flow make it a worthy investment.
- Investment Strategy Insight: In the current market environment, Charlie Munger might consider purchasing shares of S&P Global, Fair Issac, and Home Depot at discounted prices, reflecting his long-term investment philosophy focused on high-quality companies.
See More
Sen. Hawley Investigates FICO's Price Increases
- Price Increase Investigation: Senator Hawley has sent a letter to FICO indicating his intention to investigate the company's price hikes on credit scores widely used in the mortgage lending industry, asserting that these increases disproportionately burden first-time homebuyers in an already strained market.
- FTC Involvement Suggested: In his letter, Hawley urged the Federal Trade Commission (FTC) to also investigate FICO for unfair competition and deceptive practices, highlighting a strong commitment to consumer rights that could lead to greater industry regulation.
- Market Reaction: FICO's stock fell 5.7% during Monday's regular trading session, reflecting investor concerns about the company's future profitability amid political scrutiny and potential regulatory investigations.
- Industry Criticism: Bill Pulte from the Federal Housing Finance Agency criticized FICO's pricing model, calling for a more economical approach, indicating widespread dissatisfaction in the market that could impact FICO's reputation and customer base.
See More
Senator Hawley Launches Investigation into FICO's Pricing Practices
- Investigation Launched: Senator Josh Hawley announced an investigation into FICO's pricing practices in the mortgage market, highlighting that price increases disproportionately affect Americans with lower incomes, indicating significant scrutiny of the company's pricing strategies.
- Financial Performance Contrast: While FICO claims its historical pricing is 'underpriced,' its total revenue for fiscal year 2025 reached nearly $2 billion, with the Scores segment generating $1.17 billion at an operating margin of approximately 88%, starkly contrasting the justification for its pricing strategy.
- Market Competition Concerns: Hawley questions whether FICO's pricing is justified by competitive market forces, noting that an 88% operating margin and a 100% compound annual growth rate in per-score pricing over five years are not indicative of a competitive market, suggesting potential monopolistic pricing behavior.
- Stock Price Reaction: Following the announcement of the investigation, FICO's shares fell nearly 6% on Monday, reflecting market concerns over the company's pricing strategies and potential legal risks, with the stock down 37% year-to-date in 2026.
See More
Customer Spending Declines Amid Ongoing Financial Pressures
- Spending Decline: In January 2026, average customer spending fell to £755, a 9.4% month-on-month decrease and 1.8% lower than January 2025, indicating ongoing financial pressures that compel customers to prioritize credit card payments.
- Increased Missed Payments: Although the overall balance paid increased by 1.4% month-on-month to 33.9%, it remains 6.7% lower than January 2025, suggesting that consumers are under more financial strain, necessitating enhanced intervention from risk and collections teams.
- Credit Limit Overages: The number of accounts exceeding their credit limits rose by 6% month-on-month and 6.2% year-on-year, providing further evidence of persistent financial pressures, particularly amid growing economic uncertainties.
- Risk Management Challenges: With a 14.3% month-on-month increase in accounts with two missed payments, this indicates potential escalation of financial stress among vulnerable customer segments, prompting collections teams to adopt proactive intervention strategies to mitigate default risks.
See More
Consumer Spending Declines as Credit Card Delinquencies Rise
- Declining Spending Trend: In January 2026, consumer spending fell by 9.4% month-on-month to an average of £755, which is 1.8% lower than January 2025, indicating ongoing financial pressures that may further weaken consumer confidence.
- Increase in Delinquency: The number of customers missing payments increased month-on-month, particularly with a 14.3% rise in accounts with two missed payments, suggesting escalating financial stress among vulnerable customer segments that could impact future credit risk management.
- Credit Card Balance Changes: Although credit card balances slightly decreased by 0.6% in January 2026, they remain 4.8% higher year-on-year, indicating a heavier burden on consumers, necessitating proactive intervention strategies from risk and collections teams to address potential default risks.
- Limited Improvement in Payment Rates: The overall balance paid was 33.9%, which is a 1.4% increase month-on-month but still 6.7% lower than January 2025, reflecting the ongoing financial strain on consumers that affects credit card usage and market stability.
See More
Three Stocks Charlie Munger Would Buy Now
- S&P Global's Resilience: With a market cap of $127 billion and a current price of $424.43, S&P Global's 65% gross margin and 43% operating margin highlight its strong profitability, making it attractive even with a P/E ratio of 29, close to the market average.
- Fair Issac's Profitability: Fair Issac boasts an impressive 83% gross margin and a staggering 394% increase in free cash flow over the past decade, now at $718 million, despite a P/E ratio of 44, which is above the market average, its current price of $1,126.34 presents a compelling investment opportunity.
- Home Depot's Market Position: As a leader in the home improvement sector, Home Depot has a market cap of $319 billion, and its current price of $320.75 is near a 52-week low; however, its stable 32% gross margin and over $2 billion in quarterly free cash flow demonstrate strong financial fundamentals.
- Investor Opportunities: In the current market environment, Charlie Munger would likely advise investors to consider S&P Global, Fair Issac, and Home Depot, particularly as their stock prices are at relatively low levels, showcasing long-term investment potential.
See More
Charlie Munger's Preference for Discounted Quality Stocks
- S&P Global Value: Charlie Munger would be impressed by S&P Global's appeal, boasting over 150 years of history, with an average gross margin of 65% and an operating margin near 43%, showcasing its strong profitability and market position.
- Fair Issac's Competitive Edge: Fair Issac holds a significant position in the loan industry, with its FICO scoring system determining eligibility and rates, achieving an 83% gross margin and a staggering 394% growth in free cash flow over the past decade, now at $718 million, highlighting its exceptional profitability.
- Home Depot Investment Opportunity: Despite Home Depot's stock trading near a 52-week low and a net debt increase of over 250% to $64 billion in the past decade, its stable 32% gross margin and over $2 billion in quarterly free cash flow make it a worthy investment.
- Investment Strategy Insight: In the current market environment, Charlie Munger might consider purchasing shares of S&P Global, Fair Issac, and Home Depot at discounted prices, reflecting his long-term investment philosophy focused on high-quality companies.
See More
