Title to view post

A recent Experian Automotive credit trends study revealed that vehicle history can have a major impact on loan performance. The study found that more than 2 percent of the late-model used vehicles (model year 2005 and newer) had a negative vehicle history event (frame damage, salvage, odometer rollback, etc.), which can significantly impact the vehicle's value. The study also showed that while these instances occur across all credit segments, more than 3 percent of financing outside of prime had negative vehicle history. Vehicles with a negative history event also referred to as "brand", also have a higher percentage of charge-offs for lending institutions. By leveraging information within vehicle history reports, lenders can identify branded vehicles when the loan is made and mitigate losses from charge-offs and from loss of value when sending repossessed vehicles to auction. Photo: Shutterstock

Consumer information is at the center of our economy. It connects us to the right products and services, helps companies innovate and expand, and allows consumers to make smarter choices throughout their lives.  While the use of consumer information is becoming more important to businesses and consumers, there is a growing concern among policy makers that the laws governing consumer privacy are not keeping up. Over the last year, the FTC and the Department Commerce have been studying these issues and each released preliminary reports looking at the changing privacy landscape.  Although much of the discussion has focused on online data, the reports take a broader look at the privacy practices of organizations both online and offline, offering a number of recommendations that challenge policy makers and companies to better protect consumer information. As regulatory agencies and Congress continue to examine business practices around consumer privacy, I thought it might be helpful to take a look at recent comments Experian filed with the FTC and highlight a few areas that will be important for policy makers to consider going forward. A flexible and adaptive regulatory system is essential to an innovative economy. Consumer privacy expectations are continuing to evolve and, as a result, standards must not be rigid.  Along with existing regulations, new challenges should be dealt with robust and evolving self-regulation – not new laws – to ensure consumers are protected now and in the future. Consumer privacy should be viewed from multiple perspectives. The recent debate around commercial information sharing has centered on consumer privacy; however there are other viewpoints that should be considered. For example, how are businesses using information in a responsible manner to innovate and increase productivity or how does the overall economy benefit from consumer information that makes us more competitive in a global marketplace. Incorporating consumer privacy into all aspects of a business is a powerful consumer benefit. The FTC report recommends a “privacy by design” framework – meaning that companies incorporate privacy into every aspect of their business operations.  This framework could potentially evolve into a useful tool for companies to evaluate their privacy and data security policies. Photo: Shutterstock

Many consumers simply do not understand what a credit report, credit score or id theft is until they have either been denied a loan or fallen victim to fraud. As part of Experian’s Live Credit Smart program, the company offers consumers information on the specific areas that they need to Live Credit Smart: Credit Reports: What is a credit report? How can consumers check their report? How can consumers dispute inaccurate information in their report? Credit report information can be found here. Credit Scores: Consumers usually have a number of questions about credit scores.  Is there only one credit score?  What impacts a credit score? How do lenders determine whether a score is good?  How can I improve my credit score?  Consumers can find more information on credit scores here. Fraud Prevention: Identity Theft and fraud are real concerns for consumers and they usually have questions about the steps they can take to protect themselves.  Experian provides information on important tips consumers can use, such as the importance of credit monitoring and also how to place a security freeze on their credit file.  More information on Fraud and ID Theft can be found here. Photo: Shutterstock