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Recently, I had the privilege to serve on a panel during a joint workshop held by the Consumer Financial Protection Agency (CFPB) and the Federal Trade Commission (FTC) to examine the accuracy of credit reports and how to best serve consumers.  During the workshop and in following written comments, I shared Experian’s commitment to advance accuracy in consumer credit information and our perspective on how the current regulatory environment supports our efforts to achieve continual improvements. At the workshop, we heard concerns about how inaccuracies in credit reports can impact consumers and businesses in terms of denial of credit or higher-priced credit.  For Experian, these are real concerns.  Our role as a credit reporting agency is to help facilitate fair and affordable credit to consumers and small businesses, and that’s why data accuracy is mission-critical and central to our corporate values. Since the workshop was held in Washington, DC, it’s no surprise that many stakeholders turned to the topic of reforming the existing regulatory system.  Some stakeholders focused on making systemic changes in law and regulation, such as by setting very strict matching standards when credit bureaus receive and issue credit reports.  But experience shows us that the current legal and regulatory standards are, indeed, appropriate and we don’t need a sledgehammer to hit a nail.  Such actions would have unintended negative consequences and are unnecessary when all stakeholders share the goal of ensuring access to credit. In fact, the central theme I reinforced at the workshop was that the CFPB’s existing supervisory and examination authority, combined with market demand, industry investment and consumer expectations are the most effective ways to continually improve accuracy of credit reports. Let me explain how my over 30 years of experience with Experian leads me to this conclusion.  Consumer reporting agencies, like Experian, are regulated by the Federal Fair Credit Reporting Act (FCRA). The FCRA requires that consumer reporting agencies “follow reasonable procedures to assure maximum possible accuracy” when assembling credit reports. Notably, this standard does not set an accuracy rate but appropriately recognizes the complexity brought about by a system with thousands of stakeholders (lenders, users of credit reports, and credit reporting companies reporting billions of pieces of information on hundreds of millions of consumers). It’s been more than eight years since we last saw comprehensive studies to determine the accuracy of credit reports. The two most cited are reports from the Policy and Economic Research Council (“PERC”) and FTC. One of the key findings in both studies was the percentage of consumers that were impacted by material errors in their credit report. In other words, errors that resulted in credit score changes that impacted the interest rate a consumer would pay on a loan.  Both studies found that a small percentage of credit reports, 0.5% in the PERC Study and 2.2% in the FTC report, had material errors. While the percentages do represent many consumers (a minimum of 2.5 million to 4.4 million consumers) they also highlight the important need for continuous improvement so that material and consequential errors are the focus of innovation in data integrity.  We don’t need to throw the baby out with the bathwater, we need to hone in on targeted and discrete changes.  That’s my job at Experian, and I’m passionate about it. In addition to the “maximum possible accuracy” standard, market incentives provide another powerful mechanism to ensure improved data accuracy. Users of credit reports – ranging from banks to employers to government agencies – rely on accurate data to make critical decisions every day about loans, employment access, government benefits, and other important matters. Lenders need accurate data to perform sound risk assessments and provide terms tailored to the borrower’s appropriate risk level.  As a result, credit reporting agencies compete to have the most reliable and accurate data.  The same is true of lenders reporting data on their customers, as they have incentives to maintain good consumer relationships. Further, if inaccurate data is reported by a lender or maintained by a credit reporting agency, we all spend more time responding to consumer disputes instead of investing in new products and services to help consumers.  It’s easy to see why inaccurate data just isn’t good for business! Since the FTC and PERC accuracy studies were completed, the regulatory environment for credit reporting has drastically changed. In 2012, the CFPB began to supervise and examine the credit reporting industry. This regulatory authority allows the CFPB to see the entire credit ecosystem that is composed of not only credit bureaus, but also lenders, other users of credit reports, and entities that furnish data to credit bureaus.  CFPB’s comprehensive and continuous examination procedures include directly reviewing the policies, procedures, and practices of major credit reporting agencies. These steps include reviewing how data furnishers are screened, steps taken to minimize the likelihood of incorrect information on a report, measures to prevent duplicative information, and any programs designed to assess the accuracy of consumer information. These actions allow the CFPB to understand the metrics of accuracy and how it improves over time, and to apply the FCRA on a dynamic basis that can meet any challenges unforeseen when the law was originally passed. The CFPB’s supervisory authority thus serves as a powerful tool to holistically address data accuracy. In a 2017 supervisory report, the CFPB stated that “Credit reporting agencies have made significant advances to promote greater accuracy, the oversight of furnishers, and enhancements to the dispute resolution function.” It’s also important that there are ongoing discussions among the credit bureaus about how to move accuracy forward. To that end, joint efforts by the credit reporting agencies pursuant to an agreement with a group of state attorneys general, resulted in a joint working group to look at what can be done collectively to agree on improvements to accuracy. Recent changes include the delayed reporting of medical debt to allow time for insurance to process payments, and the removal of judgment and tax lien information, which did not meet new, elevated standards. The joint working group continues to explore new ways of increasing the accuracy of credit data. A broad, flexible, yet demanding legal structure, combined with strong market incentives and a robust and effective supervisory program, all work together to foster an environment to best serve consumers. As the consumer’s bureau, Experian is committed to playing a leading role in furthering a strong and accurate credit reporting system.

As I sit here on the day of the launch of the most comprehensive small business stimulus program in our nation’s history in response to the COVID-19 pandemic, my mind turns to the small business owners. Starting today, business owners can start applying for loans that are forgivable under the Small Business Administration’s $350 billion Paycheck Protection Program as long as those businesses maintain payroll to most of their staff and use the funds for eligible expenses.   You’ve heard that small businesses are the heartbeat of the U.S. economy, the statistics back that up – small business represents a 47% of all employees and generate 43.5% of the Gross Domestic Product (GDP).   More than their contributions to our economy, small business owners and their employees are the pillars of our communities, providing products, services, entertainment, and more. After the last few weeks, I think we can all appreciate the role small business plays in each of our lives.     We, at Experian, take our purpose very seriously – creating a better tomorrow by creating opportunities for businesses to succeed.   One thing we can count on in America is that small business owners rise to a challenge, it’s in the foundation of this great nation. Small business owners have the passion, fortitude, and downright grit to take them through the most challenging times – this time will be no exception.   But I also know that now and then a little help is needed, and right now we need to help small business owners who are dealing with the immediate implications of the COVID-19 pandemic. Beginning today, an unprecedented level of government support will be made available through the Small Business Administration and other government bodies.   At Experian, we applaud the signing of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) as it’s a great step toward economic recovery. The CARES Act provides grants and loans to small businesses with an unprecedented loan forgiveness program.   We also feel an obligation to do our part to ensure that small businesses, who are dealing with the immediate implications of this economic crisis, have additional resources at their disposal to make informed decisions at this critical time. That’s why I’m proud to share that we have made available to every small business in the United States free access to their Experian Business Credit report until May 1st. Small business owners can get their reports at www.freecompanycredit.com.   We also feel a deep obligation to our clients, the lenders, trade creditors, utilities, insurance underwriters, and more as they strive to support small businesses during this time. To further help small businesses gain access to capital they need, Experian also launched its free COVID-19 U.S. Business Risk Index to assist lenders and government organizations in understanding how to make lending options available to the business segments that need it the most. This new risk index can help business risk professionals better understand the impact that the pandemic may have on commercial operations based on several key factors. We also hope that our data and advanced analytics enable our clients to offer fair and responsible lending to small businesses that need it most during this time.   I’ll close by urging the small business community to please take advantage of accessing your free Experian business credit report while continuing to show the grit and innovative spirit that has helped make America the most robust economy in the world. I’ll leave you with one of my favorite quotes, from Arianna Huffington, “Fearlessness is not the absence of fear. It’s the mastery of fear. It’s about getting up one more time than we fall down.”   Sincerely,  Hiq Lee 

These unprecedented times call for unprecedented measures. Experian supports the signing of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). We are encouraged by this historic effort to protect consumers and businesses alike. The relief bill is a great step toward economic recovery, directly supporting Americans through expanded unemployment coverage and by providing grants and loans to small businesses. At Experian, we have an unwavering commitment to help consumers and clients manage through this unprecedented period. We are actively working with financial institutions, lawmakers and regulators on tools and initiatives to protect consumers from potential adverse consequences to credit reports and credit scores as a result of financial hardship caused by the COVID-19 outbreak. Additionally, we remain focused on ensuring data integrity as we lead industry initiatives to provide financial institutions methods to clearly identify consumer accounts that are subject to financial hardship as a result of COVID-19 and ensure that such information is properly reflected in credit reports and scores. We’ve built a culture of continuous innovation at Experian, from the way we work to the solutions we create. This has formed a workplace where our teams across the world have a sense of purpose, with a collective desire to help change the lives of millions for the better. Now, more than ever, this is a crucial role we play as we work to create innovative solutions and tools for consumers and businesses to successfully navigate this evolving financial landscape moving forward. Our support of the CARES Act is just one step of many, as we support consumers and customers alike to help bolster the financial ecosystem.

Having a diverse workforce is vital to help us innovate and deliver on the needs of our increasingly diverse clients and consumers. Over the years, we’ve made some great progress, but there’s so much more we can do and it’s going to take the collective effort of all of us to continue to move the needle. That’s why we’re gearing up to celebrate International Women’s Day (IWD). It’s a day celebrated in many countries around the world to recognize the achievements of women and drive equality among men and women. At Experian, IWD activities are extending throughout the month of March. Have a look at what’s going on around the world as Experian celebrates this important day: Asia Pacific The Asia Pacific region is hosting a range of activities across our offices in March, which will include round-table and speaker events as well as an opportunity to network and pledge their support for IWD. EMEA and UK&I EMEA and UK&I are joining together for IWD to support and celebrate diversity and inclusion. The week started with a video of employees from both regions reflecting on what diverse teams bring to our business. Employees will also be invited to a variety of events to engage and network with inspirational women and hear stories from our leaders on what diversity means to them personally. Latin America Throughout the month of March, Latin America has been running a campaign to share stories of achievements in their region and raise awareness about breast cancer prevention and other diseases more common in women. On IWD, there will be a panel of women leaders who will address issues such as the social inclusion of women in the region, women’s participation in the labor market, Experian’s commitment to female leadership and the importance of a work/life In Brazil, IWD is kicking off with a presentation by members of the United Nations to present their 50-50 Gender Equality program (which aims to eliminate gender inequalities by 2030) and how they are working with companies around the world to achieve this vision. Employees will have an opportunity to hear from leaders in our business about diversity and inclusion plans for the region, and listen to a panel of external speakers discuss diversity challenges and career development. North America Our employees in North America will be kicking off the week with celebrations across their ITS’ 13 offices in the region. Each office will have daily activities throughout the week, and all employees – including virtual and those based in smaller offices – will be invited to attend webinars focused on Diversity and Inclusion topics. On IWD, there will be panel discussions with senior leaders who will speak on various career development topics. To close out the week, there will be a special Book Club discussion on March 9. We will continue to update this blog post all week with pictures and other ways we’re celebrating IWD. Bookmark this page and come back.

I work at SEGA, a global games company. I first met Nakamura-san, my contact at Experian, about eight or nine years ago. I remember telling him at the time that I was a little sceptical of credit report and analytic companies – I thought they were either too expensive or their reports weren’t detailed enough. However, a year later I needed help from a company like Experian, and I thought I’d put them to the test.   My team and I were starting to communicate with overseas markets, to work with companies around the world. So, I phoned Nakamura-san. It was a business negotiation, so I had my poker face on – I played the usual mind games you have to, insinuating that if Experian did this job well then our company might be able to offer them even more business in the future.   Safe to say, they passed the test. We’ve been building a really positive relationship with Experian for the last eight years.   We’re working with companies in Hong Kong, Taiwan and London at the moment. To work with them, we need information – for instance, we need to know if they’re actually located where they say they are. Even if a company gives us an address, it’s always possible that it operates from a different country – we’ve all heard about companies and their tax havens. When we have these questions, Nakamura-san and his team at Experian collect and analyse data on these companies, and give us very thorough information – breaking it all down and explaining everything to us really clearly.   It’s really difficult to get the rich, detailed analysis of data you need, but Experian provides us much better data than any of our previous credit research companies managed to. They consult with us, and help us use this data to get our business to a better place. I’m very grateful for it – they’ve added great value to our business. Mr. Shinji Mutazono, Team Manager, SEGA Group Companies Finance Department, SEGA Holdings CO., Ltd. 

In Malaysia, nearly 280,000 people live without electricity. By volunteering with the Liter of Light program, we’re bringing solar panel lights to remote villages, transforming the quality of life and brightening the darker hours for families. In Malaysia, more than 1 percent of the population lives without electricity – one of life’s basic necessities – which equates to nearly 280,000 people living in darkness after the sun goes down. Some people have never had electricity in their life, making simple tasks like cooking or reading nearly impossible after dark. I wanted to change that. My day job is to support and enable individuals within Experian to pursue various career opportunities, but what I’m most passionate about is the way Experian helps me invest in my local community through the Heart of Experian Corporate Social Responsibility program. This year, my team and I had the chance to collaborate with Liter of Light (LOL) – a global, grassroots movement committed to providing affordable, sustainable solar light to people with limited or no access to electricity. In February, we joined one of their projects to install 60 solar street lights in the village of Orang Asli, an indigenous community in the Cameron Highlands.   Over the span of two days in February, a group of 30 Experian volunteers built and installed the solar panel lights. On the first day, the LOL team taught us how to build the panels, teaching us the skills needed to cut wire, assemble PVC pipes and drill holes. The second day, we rode in Jeeps through muddy roads and a three-foot deep river to reach the village. We spent hours unloading the lights and assembling the panel boxes, plotting the village maps and identifying the right spots to install the solar panel lights. I was happy to see some of the local villagers’ curiosity and participation throughout the day. Some helped us assemble the lights while others prepared the right spots for installation by building bamboo stands. The weather was kind to us, so by 5 p.m., nearly all the lights were installed – just before dark! After completing all the hard work, our team recorded a group video using a drone that all of the Orang Asli children chased after. Thanks to our service project providing light to a village in darkness, 150 villagers in Orang Asli will now have more productive, higher-quality lives during the dark hours of the day. I’m so glad I got to play a role in that.