Legislation & Regulatory Issues

Credit Score Competition Would Help Consumers and Reduce Risk

Posted on Dec 10 2015 by

credit
By all accounts, the national housing market in the US stabilized with a recent report showing year-over-year growth at 6.8 percent for October 2015. However, while interest rates remain near all-time lows, it’s estimated that millions of Americans are unable to take advantage of this opportunity because they are unscoreable using the current credit score model mandated by Fannie Mae and Freddie Mac (“the GSEs”).

Under their current guidelines, the GSEs require mortgage lenders to use an older version of a consumer’s FICO credit score when assessing their credit risk. This model is based on data from 1995 to 2000 and unnecessarily excludes millions of qualified borrowers. For instance, VantageScore 3.0 allows for the scoring of 30–35 million more people that are currently un-scoreable under the legacy credit score model.

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Legislation Introduced to Empower “Credit Invisible” Consumers

Posted on Dec 04 2015 by

CFPB
In a recent report, the Consumer Financial Protection Bureau (CFPB) estimated that there are more than 45 million American consumers that are “credit invisible,” meaning that they either have no credit history or a credit file too thin to receive access to mainstream credit products.

This limits their ability to get an affordable loan for a car, realize the dream of homeownership or even restricts access to capital to start a small business.  More frequently, a lack of credit history forces consumers to turn to more expensive, short term lending options.

While credit invisibles may not have a traditional credit history, many make their cable, utility and mobile phone payments on time. However, this on-time payment data is not being included in their credit file.

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National Consumer Assistance Plan Is Extended as Experian, Equifax and TransUnion Settle with State Attorneys General

Posted on May 20 2015 by

Today, Experian and the nationwide credit reporting agencies announced another important step in our work to improve the credit lives of consumers and create a healthier financial ecosystem. The settlement between 31 state attorneys general and Experian, Equifax and TransUnion concludes months of productive discussions and our industry is proud of the results.

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Top 3 CFPB Priorities for 2015

Posted on Mar 06 2015 by

CFPB

We’re just a few months into a new year and already there are clear signs how the Consumer Financial Protection Bureau (CFPB) plans to further advance its regulatory authority over bank and non-bank entities across the credit ecosystem.

Here is a look at the top three priorities for the CFPB in this space:

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Congress Should Take Action to Improve Financial Education In Our Country

Posted on Oct 06 2014 by

How can I improve my credit score?

That’s a question thousands of consumers ask Experian every day. This question is asked even more frequently now that lenders are sending an estimated 120 million credit-score disclosures each year to consumers when they are denied credit or are offered terms that are less favorable than those offered to others. These score disclosures provide consumers with basic information about the score used in a transaction and direct them to the national credit bureaus if they have any questions.

However, when consumers ask Experian how they can improve their credit standing, it’s difficult to respond in an easy and consumer-friendly way. The difficulty arises because, although we want to help, the Credit Repair Organizations Act (CROA) puts substantial roadblocks between credit bureaus and consumers.

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Experian launches platform to manage cross-channel fraud risk

Posted on Jul 29 2014 by

 Precise ID® with FraudNet provides a single view of a consumer’s identity across devices Experian®, the leading global information services company, has announced the launch of a cross-channel fraud platform to better authenticate consumers, validate their mobile devices and identify mobile fraud. The platform combines Experian’s Precise ID®, an industry-leading risk-based authentication service, with FraudNet, a global […]

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How fraud is transforming the mobile banking industry

Posted on Jul 23 2014 by

Cybersecurity is increasingly becoming a challenge across many industries. I recently spoke with Mike Gross, the director of risk strategy and professional services at 41st Parameter, about how the banking industry is changing to adapt to new mobile technology and the new forms of fraud that exist as a result. At 41st Parameter, Mike is responsible […]

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Why Mississippi Lawsuit Against Experian has no Merit

Posted on Jun 21 2014 by

Earlier this week, it was reported that the Mississippi Attorney General filed a lawsuit against Experian. While not breaking news, it is important to provide context to the allegations.

As the world’s largest credit bureau – and in managing more than 220 million files in the US alone – it has become commonplace to question credit reporting agencies. We are used to scrutiny of our practices – but sometimes the claims are just plain wrong.

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