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Taking the pain out of credit reporting

Let’s face it, depending on your institution’s resources and how you go about it, credit reporting can be a huge pain! Whether you provide consumer data to one or several Credit Reporting Agencies (CRAs), whether or not you use a third party to submit data, and whether you test data proactively or reactively, (or not at all) dealing with bureau rejects, data monitoring, and disputes can require significant time and resources.

More than that, it’s sometimes just the month-to-month variability that causes most concern. How much time will be required for remediation this month? How much time will IT need to spend on SQL coding to update or improve your system of record?

While the Metro 2® reporting format is going to become mandatory beginning February 2018, there can be differences in the responses. And even if you do use a third party processor to submit your data after it has been formatted, they do not relieve your burden of ensuring accurate reporting under the Fair Credit Reporting Act (FCRA) and other Consumer Financial Protection Bureau (CFPB) rules, or of having policies and procedures in place to validate the accuracy of your data and investigate/respond to disputes. You, and your board members, are still responsible for FCRA complaince and your data quality.

Of course, there is also the time pressure, i.e. the challenge of dealing with rejected reports, investigating errors, fixing any issues and responding to customers’ disputes within 30 days, per the regulations. If errors have occurred and the system of record needs to be updated, that has to happen in a timely fashion too, otherwise you’ll likely be repeating the same errors next month!

There are very strong benefits to helping customers establish their credit, both for them and for the furnishers who provide the data. Consumers with better scores get better loan rates and furnishers are able to better manage their risk.  If you monitor your data every month, you’ll be totally familiar with the problems that can and do occur because of data quality issues. The result of not attending to them is, at a minimum, poor customer satisfaction. At worst, your organization can incur significant cost. The costs can include unnecessary time spent on remediation efforts and the risk that errors in the sytsem of record will perpetuate other issues. Not to mention the potential for regulatory fines and bad PR when inadequate processes and policies are in place that negatively affect consumers.

What’s to be done?

There is a way to reduce the pain and eliminate a good deal of the risk and cost. What if you had a tool that could proactively validate your data and eliminate the vast majority of common errors? One that can be brought online within a few hours, doesn’t require any SQL (or other) programming, and that automatically tests for over 115 common credit reporting issues, including making adjustments for the reporting nuances between the credit agencies.

DataArc 360™ Powered by Experian Pandora is designed to check the consumer credit information provided by data furnishers prior to submission to credit bureaus. This allows data providers to take a proactive approach to ensuring the accuracy of information submitted to the bureaus, which will result in fewer credit disputes and a more positive interaction between consumers and their credit. DataArc360 allows you to:

  • Assess and correct your Metro 2®  file prior to submitting to the credit bureaus. It’s bureau agnostic and can be used when sending data files to all CRAs.
  • Analyze and uncover data issues, find root cause, perform ad hoc investigations, monitor quality over time, and prioritize and justify actions.
  • Rules can be easily added or modified by the business user to meet your own unique reporting conditions, policies, and product features.
  • Perform data preparation, instantaneous data browsing, filtering, and relationship discovery.

 

Not just a visual representation, but rather a rules-based approach to data analysis, DataArc 360 allows credit data furnishers to proactively manage their submissions, quickly profile and identify errors across their entire database—not just a data sample— to find missing or duplicated entries, and check for illogical conditions such as accounts in repayment not reporting a balance.

Beyond proactive data quality management, this powerful data reporting solution helps significantly with the post processing of reject reports and handling of disputes by easily “normalizing” rejects across different bureaus, allowing matching to Metro 2® files for analysis, and providing an efficient mechanism to manage the process going forward.  In summary it:

  • Saves IT time and effort
  • Reduces cost of remediation (staff time)
  • Reduces customer dissatisfaction
  • Reduces the pain and improves the moral of your credit reporting and compliance staff.

With the right tools at your fingertips, you can feel good knowing your customers credit is accurately represented and data reporting processes aren’t such a pain after all.

Ready to see how DataArc 360 can help you improve your data reporting practices?

Learn more

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