JR TOC Review

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.

The power of data is good. Couple it with analytics and it becomes great. Derive real and tangible insight from this process, and you are left with a very potent tool to affect real change and do a lot of good in the process. At Experian, we have deep experience harnessing the power of data, in fact, we have been doing it since 1897. Using our insights to help merchants and consumers by providing an annual credit reference directory, we were using “big data” before big data was a buzz word. Fast forward to today, Experian is still working across sectors and categories to help business and consumers alike benefit from the intelligent use of data through insight. Our data assets are used globally to help consumers, financial institutions, healthcare organizations, automotive companies, retailers and governmental organizations make more informed and effective decisions. These days, “Big Data,” however, has become a cliché and often times carries a negative connotation due in part by the activity of some bad actors, but also because people tend to be afraid of the things they don’t fully understand. We look at “Big Data” differently. I’d like to take this opportunity to help shed some light on why data and the insights derived from that data are actually good. We are, by and large, better when we can make sense of the world around us, and that world today is made more complex due to the vast amount of information that’s out there. Experian’s business is predicated on the idea that we come to work every day to help society make better sense of the world by sifting through the information and coming up with solutions for real people, partners, governments and clients. Our insights are very often the cornerstone of solutions to real life challenges. Insight is used to help a consumer secure an affordable loan, understand their credit score, or protect their identity; or for a business to manage risk, help prevent fraudulent transactions, and to ensure they are marketing their products and services to the right consumers at the right time and across the right channels. Today, insights derived from data are enabling millions to obtain their first lines of credit. For example, by reporting, collecting and analyzing on-time rental payments, more Americans are building the credit histories necessary for financial and economic inclusion. In fact, a new analysis from Credit Builders Alliance recently confirmed the value of credit building for American citizens and the overall economy. Across the nation, examples like these abound. In each instance, information is helping to solve some of our most vexing public, societal and corporate problems, and at Experian, we celebrate our teams of data scientists and innovators who set out to solve some of these problems using big data and technology. In fact, this week we are gathering our team of global data scientists at our Future of Information Conference to collaborate and share break through innovations in data science. At the conference, we will also award the inaugural Si Ramo Prize, a global competition in data science named for the extraordinary pioneer of innovation in our industry, Dr. Si Ramo. Among other things, Dr. Ramo was one of the first to envision a cashless society and the data needed to drive that innovation. The future is bright and there’s still more we can do with data to drive growth and improve national policies. We’re working with the health care industry – and others, from energy to automotive to the multi-family housing community and government – to fully leverage data. We now need others to recognize and embrace its potential. So, yes, big data is good. The responsible, smart and compliant use of big data benefits people, our society and our economy. I invite you to browse through our site to learn more about what our company does and the programs we have in place. Click here to learn more about how Experian is conquering the world of big data. Craig Boundy is CEO of Experian North America.

October is National Cyber Security Awareness Month, and Experian’s ProtectMyID® issued its new survey results about cybersecurity. The study, conducted by Edelman Berland, reveals areas where consumers’ identities are the most at risk, including electronic devices and online accounts. The findings show that 93 percent of respondents believe that identity theft is a growing problem yet are not doing enough to address the issue. “Most people recognize that identity theft presents a problem that could affect them financially but don’t take steps to protect themselves,” said Becky Frost, senior manager of consumer education for Experian’s ProtectMyID. “Identity thieves use data as their commodity, selling it to the highest bidder, or for personal gain, so it’s important for consumers to protect their personal information. Consumers overwhelmingly report taking steps to protect their physical and digital information, but 33 percent still do not feel confident that they are doing enough to protect their identities. In fact, 73 percent say they are concerned that they could be affected by identity theft in the future, and 90 percent note that people should be more concerned about identity theft. Take greater control when securing your personal information with these helpful tips: Change passwords on a regular basis Avoid sharing personally identifying information, such as your full birth date, on social networks Avoid using public Wi-Fi hotspots that make it easy for thieves to hack into the information stored on your mobile devices Password-protect your phone since it provides access to sensitive information and accounts Enable remote location and wiping software to track your phone if it’s lost or stolen, allowing to wipe all of the data from it Review credit reports regularly, and watch for signs of fraud Consider enrolling in identity-protection monitoring, and take action if you receive alerts that your identity could be compromised Check out what else these respondents said in the complete summary of our survey results here:

Experian–Oliver Wyman data reports $120 billion in new home-equity credit loans in past year; Q2 2014 saw new mortgage originations totaling $292 billion Costa Mesa, Calif., Sept. 29, 2014 — Mortgage origination volumes saw an increase of 15 percent in Q2 2014. Home-equity line of credit (HELOC) lending saw the biggest gains, according to Experian, the leading global information services company, as reported in its quarterly Experian–Oliver Wyman Market Intelligence report. Is the home refinancing boom over? “Home lending had an incredible two-year period from Q2 2011 to Q2 2013, with $4 trillion in mortgage origination volume; 71 percent of that, or $2.9 trillion, came from home refinancing,” said Linda Haran, senior director of product management and strategy for Experian Decision Analytics. “A look behind those numbers tells us that the total dollars originated over the past four quarters are about $1.3 trillion versus $1.8 trillion, showing a 30 percent decrease in annual origination volumes from the refinancing boom.” “However, those last four quarters show us that the mix of purchase-to-refinance volume has shifted to a fifty-fifty split between refinance and purchase volume activity. This equates to new purchase activity increasing by 22 percent in Q2 2014 from last year, signaling that consumers are getting back into the market. In the long term, this appears to set up the market for continued purchases into spring and summer of 2015.” $35 billion in new HELOC lending from Q2 2014 Home-equity lending increased 25 percent in Q2 2014 totaling $35 billion in new HELOC originations compared with Q2 2013. Looking at the past 12 months, HELOCs totaled $120 billion in new originations, representing a 27 percent increase compared with the previous 12 months. HELOC lending growth seen across all regions Double digit growth was seen in all regions compared to the numbers reported one year ago.  The two regions that led the trend in increasing HELOC origination volumes were the West Coast and the Northeast — with 27 percent and 15 percent year-over-year growth, respectively. California accounted for the highest volume of HELOC dollars originated in Q2 with $5.9 billion, followed by New York with $2.2 billion and Pennsylvania with $2.0 billion. Make sure to join us for the Q3 2014 Experian–Oliver Wyman Market Intelligence Report webinar. About the data The data for this insight and analysis was provided by Experian’s IntelliViewSM product. IntelliView data is sourced from the information that supports the Experian–Oliver Wyman Market Intelligence Reports and is accessed easily through an intuitive, online graphical user interface, which enables financial professionals to extract key findings from the data and integrate them into their business strategies. This unique data asset does this by delivering market intelligence on consumer credit behavior within specific lending categories and geographic regions.

Experian Marketing Services, a recognized leader in data-driven marketing, today unveiled OmniView™, a persistent data-linkage technology that creates a real-time single customer view, as part of the Experian Marketing Suite. The single customer view, or persistent identity, created by OmniView allows organizations to increase the precision, authenticity and sophistication of their marketing campaigns across channels and devices. Since introducing the industry’s first linkage-technology product, Experian Marketing Services has been the go-to resource for identity-linkage issues among database and customer relationship management (CRM) marketers. With the launch of OmniView, Experian Marketing Services extends its market-leading linkage expertise beyond database and CRM marketers to the digital-advertising industry. OmniView resolves pivotal issues plaguing advertising effectiveness, including data quality, accuracy, authenticity and precision. OmniView creates a persistent identity that gives key players within the digital advertising ecosystem — including advertisers, publishers, digital analytics providers and data management platforms — the ability to verify, match and manage identities efficiently in a privacy-protected way from all data sources. “The advertising industry needs a common denominator — a ubiquitous, consistent and persistent link across all channels — to execute legitimate 1-to-1 marketing, and OmniView is that common denominator,” said Rick Erwin, president, consumer insights and targeting, Experian Marketing Services. “OmniView breaks new ground in identity linkage technology in that it gives advertisers the ability to verify, understand and engage with their customers at a scale and accuracy that is unprecedented. This has been the centerpiece of Experian Marketing Services’ strategy for more than 20 years.” A single customer view for addressable advertising According to recent research from Experian, 99 percent of companies believe that achieving a single customer view is important to their business, but only 24 percent say they have a single customer view today. For solutions where media is being activated in addressable advertising, OmniView is the linkage engine that connects an advertiser’s or marketer’s CRM data to Experian’s data, as well as media channels, in a secure, privacy-compliant manner. OmniView gives advertisers a single customer view by establishing identification keys for consumers at an individual, household and address level that serve as a common denominator between all data sources. OmniView is built to process and reconcile large amounts of fragmented data from both third- and first-party sources, including social, email, mobile and transactional data. OmniView features a real-time application programming interface that allows marketers to understand the behavior of their customers as they move in and out of channels and make “in the moment” marketing decisions. A high-speed, high-scale platform, OmniView delivers results in real-time or batch processing. For example, marketers can connect a social-media follower to a display-advertising campaign and know if that follower made a purchase in a brick-and-mortar store. A central element of the Experian Marketing Suite’s Identity Manager, OmniView stands out from other linkage technology products in market through its accuracy. It leverages the most accurate data and the most accurate linkage technology in market. Experian Marketing Services' linkage capabilities excel in reliability and accuracy, with accuracy rates of two times, three times and five times greater than other major vendors. This accuracy ensures meaningful experiences for the consumer that fosters loyalty and repeat purchases to the brand. Learn more about OmniView: http://ex.pn/1mEn5qO