CoreLogic Teletrack will be introducing the latest model of the LendOptix product in spring 2011. LendOptix enables non-traditional lenders to make risk- based customer acquisition decisions more efficiently in store or online, enabling early determination of credit risk based on similar products. Built exclusively from payday loan performance data, the LendOptix risk model helps lenders understand and predict payment risk in the rapidly growing payday loan market. This model from CoreLogic complements the AWARE credit report to provide a statistically sound and easy to utilise summary assessment of credit performance risk specific to payday lending.
Whilst incrementally valuable in the overall decision process, scores from the broader credit market may not reflect the higher inherent risk associated with the rapid nature of payday lending, which is why utilising the LendOptix model prior to accessing data from traditional credit repositories is an efficient and cost-effective way of evaluating risk.
By leveraging its extensive loan performance data and market expertise, CoreLogic allows consumer finance companies to model the profitability and performance of their lending portfolios by controlling the degree of acceptable lending risk at origination and any subsequent renewal or rollover of the loan. The LendOptix model can be accessed through the same interface used to process credit searches against the Teletrack AWARE database. CoreLogic enables use of LendOptix independently or in combination with bank account, identity and traditional credit data.
Review of Reporting Requirements
As a Credit Reference Agency, Teletrack contractually requires customers to report all accounts that are issued, preferably, at the time that they are issued, and that customers update the current account status as the status changes or no less frequently than once a month. These updates are a requirement of both Teletrack and Experian, and in accordance with The Principles of Reciprocity.
The Principles of Reciprocity indicate that data will be shared on the principle that subscribers receive the same credit performance level data that they contribute, and should contribute all such data available. At a minimum, you must report account status updates to Teletrack and Experian on a monthly basis in order comply with The Principles.
Current status of outstanding obligations is both a positive and a negative sign for a consumer. It is an indication that the consumer was trusted for the extension of credit, but too much outstanding debt could warn a lender against issuing credit to the consumer. Because of this, it is extremely helpful to share accurate current information on consumers’ activities among lenders.
Report Accounts
Teletrack recommends that all account information be updated in real time. This provides the most accurate credit picture to all subscribers and improves the quality of the credit information on an individual. Experian requires a monthly update in batch form from each subscriber of the account activity from the preceding month.
Teletrack facilitates monthly updates through the creation of a snapshot batch file from its databases to Experian, thus satisfying your contractual agreements with Experian.
The Teletrack Reporting schema should be used to report accounts in real time. You will need to furnish both the consumer information and the account information. The schema identifies several data elements that are required and others that may not be relevant to the type of account or to the status of the account. For example, Due Date is a required field, but the Closed Date/Time is not required until the loan is Paid or Closed.
The Subscriber ID and Account Number are critical for updating consumer credit performance. The Account Number is the number that you have assigned to the account. All references to a specific account must include these two elements.
To obtain a copy of the Teletrack Reporting schema contact Teletrack at uk@teletrack.com.
Required Information
As discussed above, there are several required pieces of information of account reporting and update, including:
- Account Type
- Open Date/Time
- Currency
- Current Balance
- Account Condition
- Account Number
- Account Status
- Transaction Code of the original search
- Transaction Date/Time
Demographic information related to the consumer must also be sent for each transaction and update. In addition, several other data elements are required the first time you report a loan, including the Original Balance and Due Date. We recommend that you send all the available and appropriate fields concerning a transaction each time you update that consumer’s account status. This information is helpful in ensuring that each consumer’s record is accurate and current.
If you would like more information about reporting and updating accounts, please contact us at uk@teletrack.com.
