Here we go again more data selling and buying.  You know there’s nothing wrong with looking on the web to general idea about a person, as almost everyone does that today to get an idea but you commoditize it into categories on certain items to look at as qualifiers, that where the rub comes in. How much of the information is true and what parameters for the queries?  Of course from reading this article it sounds like more than just a casual cruise on the social networks and there’s the issues.

I had to laugh when I read this as there are businesses where people make money and do it for big Fortune 500 companies sitting around and putting Facebook “likes” and other social comments on their websites so when you go to a survey or study, gosh the companies that pay for this always come out on top with skewed data, since folks do this.  I looked at one out of curiosity to learn more and the folks that do the work feel very branded and close to the big corporations they are paid to comment and “like”.  It’s down to a science and routine to where the folks are assigned certain big accounts to carry out there wishes on social networks. 

So you as an individual want to get a loan, get a bunch of people to “like” you…anyone can do that if they know enough people or heck they even can ask strangers and they’ll do it for you.  LinkedIn though is out there as business network to look at and again a casual review is what most do but what parameters for qualifying is again the question.  It was funny today where I read LinkedIn is suing Amazon as their bots came over and scraped a lot of profile data from LinkedIn so the wars on making money with data continue. 

Now you have FICO in on it wanting to do the same and again the same applies, do a casual look but you can’t start putting parameters on qualifying and scoring on data that may not be accurate.  In addition you have the e-scoring folks who send all kinds of information out about you and you can never see it either as they have a fine line type of business listing to where they are not classified as a credit bureau.  They make a lot of money selling all kinds of data about you. 

e-scoring Credit Algorithms Invisible To Consumers Used to Market and Evaluate, Does Not Fall Under Federal Law And Such Are Used by Insurance Companies - How Will This Work With Exchanges –Attack of the Killer Algorithms Chapter 42

What’s also kind of interesting here is that the number of loans that are made compared to the number that apply are small by percentage comparison and then they have more data to sell about you as well, can send it off to E-scoring or companies such if they want, so there’s that side of it too, as when they check you out and build a file, that gives them data to sell, and with that, here’s comes the need to license these folks as well as all data sellers, banks, insurers, device companies, states, you name it.   BD 

Time Has Come to License and Tax the Data Sellers of the Web, Companies, Banks, Social Networks..Any One Making a Profit-Latest Microsoft/Google Privacy War Helping the Cause –Consumers Deserve to Know What Is Being Sold and To Who in a Searchable Format

WASHINGTON—More lending companies are mining Facebook, FB +0.54% Twitter TWTR -3.53% and other social-media data to help determine a borrower's creditworthiness or identity, a trend that is raising concerns among consumer groups and regulators.

Lending companies—some of which are backed with venture funding from Google Ventures, GOOG +0.21% the venture-capital arm of Google Inc., and Accel Partners, an early Facebook Inc. investor—are looking at potential problems such as whether applicants put the same job information on their loan application as they posted on LinkedIn, or if they shared on Facebook that they had been let go by an employer. A small business that draws negative reviews on eBay EBAY -0.95% also could undermine its chances of getting more credit, lending companies say.

"There could come a time where certain social media could be predictive and we're looking at that, but it isn't yet," said Anthony Sprauve, senior consumer-credit specialist at FICO.

Under the Fair Credit Reporting Act, consumer-reporting companies such as Experian and Equifax must verify that a borrower's credit history is accurate if a consumer disputes the information. However, companies that use social media in their lending decisions don't have to verify that information since they don't provide it to third parties like a reporting agency does, said Maneesha Mithal, the associate director of the FTC's division of privacy and identity protection.


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