Some lending companies have taken to checking what an applicant has reported on Facebook. Are the Applicants noting a lost job or money problems? Do they have too many friends for comfort? This may already be costing some people loans their current FICO score would approve. You might be interested to know that some Lenders factor your Facebook friends into their loan decisions.
This may make you cringe, but it is looked at as an exciting new source of data by FICO. In addition, some lenders are using Facebook and other social media to put pressure on delinquent loan holders to pay their debt. Lenddo, one of the noted lenders, will broadcast messages to their delinquent customers to pay up on Facebook. They also can use Facebook to see if your friends have paid their loans.
There is hope for some control in the future. Laws have been passed to protect the public in similar situations and many governments have already started to look into appropriate protections here.
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