Good overview here:
Consumer Alert: FICO Scores Dropping Authorized User Accounts - Credit.com
Quote:
How many people will be impacted?
Fair Isaac has reported that 30% of the population has an authorized user account listed on their credit reports. That means that between 60 and 75 million consumers will be impacted by this change.
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It has already started with USAA. I have a CC with USAA. In todays mail I received a Change in Terms Notice. It says in part, effective upon my cards anniversary date, USAA will only issue AU accounts to immediate family members in the same household. They said that as of the anniversary date all AU accounts will no longer be valid and that in order for new cards to be issued the primary card holder will need to supply USAA a list of immediate family members along with their SSN.
The new TOS also states that all credit lines will have a FICO scoring adjustment. I called and learned that the "adjustment" is higher scores. To qualify for a CC, previously a score of 620 would do, now it is 760. Auto loans without a 30% down payment is now 780 and mortgages with 20% down is 780.
The CSR rep I spoke to said that USAA will increase its monitoring of it's credit lines. I take that to mean more frequent account revew pulls more Universal Defaults and account closures.