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How to take control of your Metro 2® credit reporting and FCRA compliance

Michael Berard Data quality

The major consumer credit bureaus expect for data furnishers to report on their data in a single, standardized format, known as Metro 2®. While the Metro 2® standards are designed to make it easier to keep credit information up-to-date, many organizations still face many challenges with their Metro 2® reporting. From lack of resources to manual, time-consuming processes, many organizations currently struggling to comply with Metro 2® regulation take a reactionary approach to their reporting. As consumers become more well informed about their credit, through various ease-of-access channels, and as disputes grow exponentially, many data furnishers are looking for ways to ease their Metro 2® reporting.

When data furnishers prepare their reports on credit and debt, it’s important that they be as accurate as possible. Inaccurate data can lead to furnishers being fined, along with dissatisfied consumers. With the current process most organizations follow, however, there’s a good deal of room to make mistakes. Most financial institutions and other businesses that must report on credit prepare their Metro 2® report at the end of each month and send the report off to the Credit Reporting Agencies (CRAs). Within the first week of the following month, results are received, mostly through multiple reports, and furnishers must manually aggregate the information into a single file, reconciling any discrepancies, making sense of rejects, and so on. Simultaneously, they must already be preparing the report for the next month. This process is reactive and requires a great deal of effort from the staff getting the reports ready.

To simplify the current process, Experian developed a tool that can help data furnishers comply with the requirements set forth by the Fair Credit Reporting Act (FCRA) and automate reporting process. DataArc 360™ is a powerful solution that removes manual processes and enables you to proactively manage your reporting process. It will flag any discrepancies against a pre-built set of rules and measure the results through an interactive dashboard where a user can even drill down to the account level. In addition, furnishers can also run the analysis as often as desired to monitor trending statistics. With the ability to measure rules and provide status codes on the state of your reports, DataArc 360 makes it easy to report on consumer debt and gives you confidence that your file(s) will be accurate and FCRA-compliant. The tool brings discovery in-house so that rather than reconciling any discrepancies post-submission to the CRAs, you can deal with issues proactively.

Rather than chasing your tail or playing catch up, DataArc 360 can help you stay ahead of the game when it comes to your data integrity. The tool helps you make the most of your scarce resources, allowing your staff to focus on investigating issues and focusing on how to fix them. By streamlining and automating the Metro 2® process, you benefit from trusted accuracy in your credit reporting, risk mitigation from regulatory bodies (such as the Consumer Financial Protection Bureau), and aligning your credit reporting with larger data strategies, such as data quality or data governance. With a platform that hosts results, you can easily share information and collaborate across your organization with risk, fraud, anti-money laundering, sales, marketing, and compliance. More accurate reporting also leads to a better customer experience, and ultimately, to greater customer loyalty.

Are you interested in easing your Metro 2® reporting? Check out how DataArc 360 can help.

Be proactive!