Margins and Paddings Update

Experian Consumer Services Lanza Producto Crediticia en Español  Experian Consumer Services in association with Univision Communications Inc., the leading media company serving Hispanic America, recently launched a Spanish-language, credit-focused product and online financial resource center for the U.S. Hispanic community called Crédito y Más. The new product was developed to improve Hispanics access to credit education and resources. With Crédito y Más, consumers can check their credit score, receive a credit report, and have credit monitoring, among other benefits and access the information in Spanish or English. One of the most valuable features is the Centro de Información™, a robust resource center with articles, videos, financial calculators, a glossary of key credit terms and more. The additional unique features include: Access to VantageScore® 3.0. – with scores ranging from 300 to 850, VantageScore® 3.0 is a user-friendly credit score model developed by the three major nationwide credit reporting agencies, Experian®, TransUnion®, and Equifax® Communication Preference Settings – the member can select to receive communications (email and SMS) in either Spanish or English Instructional Guides – an interactive experience provides clarity in Spanish and English around how to read a credit report and the information found in each section of the website Bilingual Agents – members will have access via phone to Experian Customer Service representatives and Fraud Resolution Agents for support that are fully bilingual Identity Theft Insurance – the $10,000 insurance policy can cover legal fees, lost wages and other costs resulting from identity theft For more information and to enroll in the product membership, consumers can visit www.creditoymas.com. Para más información y cómo registrarse en una membrecía con Crédito y Más, visite www.creditoymas.com.

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. What is CROA? CROA was enacted in 1996 with the goal of stamping out the deceptive practices of credit clinics, or “credit doctors.” These clinics scam consumers by promising, often for exorbitant fees, to help improve their credit by, among other things, removing negative but accurate information from their credit file. Today, CROA remains an essential piece of consumer-protection legislation. It plays an important role in shielding consumers from the unfair and deceptive practices of unscrupulous credit clinics, which is why we supported the law’s passage in the first place. However, the law has been applied by courts in ways that Congress never intended. As it currently stands, court decisions call into question the ability of nationwide credit bureaus — the very entities that are best positioned to provide information about credit scores and credit reports or to educate consumers as to how to improve them — to help consumers understand and improve their credit in a manner that is timely or practical. For example, consumers who reach out to Experian for specific advice about their personal credit report and how to improve their credit score must wait at least three business days from when they sign up to receive the information. The consumer cannot waive this waiting period no matter what. In today’s connected world, providing legitimate services three days after the consumer asks for help just doesn’t work. It’s time for Congress to update CROA to reflect current technology and market realities. CROA’s Misapplication Has Stifled Innovation in Credit Education This misapplication of CROA chills innovation and the delivery of effective consumer-education products and services. Amending CROA to make clear that credit bureaus are able to deliver new, timely and effective financial literacy tools would positively impact on the lives of individual consumers. As our nation rebuilds its economic engine after the recent recession, a large portion of the population continues to be impacted by the housing and financial crisis. It’s estimated that more than 40 percent of Americans have a low credit score, which either leads to credit denial or a higher interest rate. According to Experian’s research, 16 million consumers potentially could move beyond a subprime credit score and another 16 million consumers potentially could move into a prime credit score by taking legitimate steps that increase their VantageScore® credit score by 30 points. That’s 32 million consumers who potentially could benefit from the recovery of their credit score by using innovative education tools such as those that Experian would like to bring to the market. Credit-education tools can also help chip away at the more than 60 million consumers in our country that are considered “credit invisibles.” These individuals either have thin or no credit file, making it impossible for them to be scored. Legitimate credit-education tools can help consumers build credit profiles by understanding the responsible actions they can take to establish a financial identity and build a credit history. Credit education is not important just for individual consumers. It also is vital to small businesses because most small-business owners rely on their own personal credit standing to access capital to grow their business or hire new employees. How Can Congress Help Improve Financial Education? For these reasons, Experian® is encouraging Congress to pass H.R. 5446, the Facilitating Access to Credit Act of 2014. The bipartisan legislation introduced by Reps. Ed Royce, R-Calif., and Ruben Hinojosa, D-Texas, would exempt reputable nationwide Consumer Financial Protection Bureau–supervised credit bureaus, such as Experian, from CROA’s requirements. The legislation also would ensure that the statute’s critical consumer protections still could be enforced against unscrupulous credit clinics. Recognizing the positive impact of CROA reform on financial literacy in the communities that they represent, several national organizations have signed on to this important effort. Policy resolutions supporting reform of CROA have been adopted by the National Black Caucus of State Legislators, the National Hispanic Caucus of State Legislators, the National Bankers Association and the United States Hispanic Chamber of Commerce. Written by: Tony Hadley, Senior Vice President, Government and Regulatory Affairs at Experian VantageScore® is a registered trademark of VantageScore Solutions, LLC.

Just a little over a week ago, I was in New Orleans surrounded by interesting, engaging and financially-savvy people with a common interest. All of these people were brought together for FinCon Expo, which took place from September 18-21. It was not only a tremendous financial media community networking event, it was an opportunity to learn, grow and find inspiration. From the Experian perspective, it was an opportunity to further build and focus on our social channels as a way to reach consumers and provide education and dialog around credit and financial empowerment. The two-day conference featured an expo hall where one could score some great information (along with some cool swag), keynote sessions that were led by powerful speakers like Jeff Goins, Farnoosh Torabi and Chris Ducker, and a full daily schedule packed with educational sessions and panel discussions (and of course, a lot of beignets served along the way). In the midst of all of this FinCon activity, Experian was named one of the Plutus award winners. We were honored and pleased to be highlighted as the winner of the Plutus award for “Best Use of Social Media by a Brand”. To learn more about this award, see our latest news release. As a company that is continually looking for ways to engage consumers through social channels, we were thrilled to see that our efforts are being recognized. This category is voted on by bloggers, who we view as partners and resources. We believe that together, we can really make a difference in helping people understand credit and how the financial decisions they make can affect them. Whether it’s through our weekly #CreditChat on YouTube and Twitter, SlideShare decks, Facebook conversations,  and blog, we are striving to provide a support system online that is available to anyone that wants to engage. The combination of the excitement and activity of being at FinCon, receiving the Plutus Award and consuming a whole lot of beignets made for a very special and sweet experience in New Orleans. Visit FinCon Expo and Plutus Awards for more information on both of these events.