|E-LOAN, Inc., a Full Credit Score Disclosure Pioneer, Calls for National Legislation
New Credit Score Disclosure Law Is a Giant Step Forward for California , but Consumers Everywhere Else in America Remain in the Dark
DUBLIN, Calif., June 27 /PRNewswire/ -- E-LOAN, Inc. (Nasdaq: EELN news), a leading online lending company, today announced that effective July 1, 2001, its California customers will benefit from the new California credit score disclosure law, which E-LOAN began advocating in February 2000. The new law requires
E-LOAN and other lenders to provide all Californian mortgage and home equity applicants with the credit score(s) used to determine whether they're approved for a loan and at what interest rate. Nationwide, the most common credit scores used in mortgage, home equity and auto lending decisions are FICO(SM) scores.
As a staunch advocate of full disclosure, including consumer access to credit scores, E-LOAN started providing FICO(SM) credit scores in February 2000 free of charge to consumers via its website. It was the first time consumers ever had ready access to these scores. More than 25,000 borrowers logged onto the site to access their scores before credit reporting agencies -- under intense pressure from the creator of the scores -- forced an end to the practice.
"The passage of this law is a giant step forward for California consumers, but there's still more that needs to be done," said Chris Larsen, E-LOAN's Chairman and CEO. "This is information that should be readily and freely available to consumers nationwide. There should be very little difference between getting information about a stock or mutual fund and finding out your credit score. Just like consumers can research an investment before they commit their money to it, consumers should have free access to information about their credit score before they apply for a loan." Because credit scores have become so profoundly important in determining a consumer's participation in the credit markets, E-LOAN has actively lobbied and testified at the national and state level in favor of guaranteeing consumers' right to access credit scores used for lending, employment and insurance decisions. While E-LOAN's efforts helped pass the Figueroa bill in California, the company continues to advocate legislation at the national level.
"We also believe that consumers have the right to know the positive and negative factors impacting their score, as well as specific actions they can take to improve their score," added Mr. Larsen. "Simply providing consumers with generic information to interpret their score does not go far enough to help them understand this key component of their overall financial picture. We've done our best to arm consumers with this breadth of information through our existing CreditXpert Credit Score(TM) offering, which is available for free to consumers nationwide."
Consumers nationwide seeking to better understand their credit standing and profile before they apply for a loan can take advantage of E-LOAN's free CreditXpert Credit Score(TM) offering. By logging onto http://www.eloan.com, clicking on the "Free Credit Scores" link and answering a brief series of questions, consumers can access their CreditXpert Credit Score(TM) and analysis online.
About E-LOAN, Inc.
E-LOAN, Inc., a leading online lending company, offers consumer loans and debt management services online at http://www.eloan.com. E-LOAN has reinvented the consumer loan process by offering a broad choice of products from many lenders for mortgages, home equity loans, auto loans, credit cards and small business loans in a secure online environment, combined with comprehensive personal service from dedicated loan consultants. Through the first quarter of 2001, E-LOAN originated over $4.6 billion in consumer loans. The company's loan processing centers are located in Dublin, CA and Jacksonville, FL. E-LOAN, Inc. is publicly traded on the Nasdaq system under the symbol EELN.
This news release contains forward-looking statements based on current expectations that involve risks and uncertainties. E-LOAN's actual results may differ from the results described in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, general conditions in the mortgage and auto industries, interest rate fluctuations, and the impact of competitive products. These and other risk factors are detailed in E-LOAN's periodic filings with the Securities and Exchange Commission.
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