CHICAGO, IL – Today, the Federal Reserve Board’s division of Research and Statistics issued its latest study that concludes that TransUnion and other credit reporting agencies operate in an effective manner for the benefit of consumers. The study, entitled “Credit Report Accuracy and Access to Credit,” found that “evidence indicates that the information that credit-reporting agencies maintain on the credit-related experiences of consumers…have substantially improved the overall quality of credit decisions while reducing the costs of such decision-making…If not for the information that the agencies maintain, consumers on the whole would receive less credit at higher prices.”
“The conclusions reached by the Federal Reserve’s independent study clearly confirms that the credit reporting industry has created a system of policies and procedures to assure maximum accuracy,” said TransUnion’s Colleen Martin, vice president of Corporate Affairs. “It is these types of polices and procedures that allow access to credit for all consumers.”
The study used a representative sample of more than 300,000 de-personalized credit records and took into account various factors and limitations that could have both positive and negative impacts to credit scores and their accuracy. Noting these variables and the current scoring models, the study concluded that “they often have little or no bearing on an individual’s credit history score or access to credit.” The study further concluded that “Further remedies, such as imposing additional legal liability penalties may, in a system of voluntary reporting, lead to unintended consequences, including less information reporting and a less efficient and effective system.” The study also recognized many of the improvements the industry has and continues to make for the consumer’s benefit.
“We are pleased that the study recognized the improved practices and policies of our industry,” said Martin. “However, there is nothing more important than the security and reliability of our data. Initiatives designed to improve accuracy will continue to be a focal point for TransUnion’s research and investment activities. This commitment to accuracy will ensure our ability to continue to provide access, choice and reliability to business and consumer customers.”
About TransUnion
TransUnion is a leading global information solutions company that customers trust as a business intelligence partner and commerce facilitator. TransUnion offers a broad range of financial products and services that enable customers to manage risk and capitalize on market opportunities. The company uses leading-edge technology coupled with extensive analytical capabilities to combat fraud and facilitate credit transactions between businesses and consumers across multiple markets. Founded in 1968, Chicago-based TransUnion employs 4,100 associates that support clients in 29 countries. Visit us at www.transunion.com.
