TransUnion Moving Into Different Credit Arenas | McCathy Law, PLC
May 25, 2016

TransUnion Moving Into Different Credit Arenas

TransUnion is currently the third largest credit bureau in the country. Along with the other credit bureaus (Experian and Equifax), TransUnion tracks everything related to a person’s finances and how well one keeps up with payments. Given the intrinsic nature of a credit bureau’s business, it’s no surprise that these companies have an abundance of data collected on each and every consumer. Most commonly, this information is sold to banks and other businesses in order to aid them in deciding whether or not to grant a line of credit, offer a particular interest rate on a loan, or give a loan altogether. But TransUnion has plans to expand their data providing side of business ten-fold, by moving a bulk of their business into the data analytics field.

Jim Peck, CEO of TransUnion since 2012, arrived at the company with a grand vision, and in just a short four years, his plans for growth are well under way. Peck wants TransUnion to be more of a risk solutions and information services provider, rather than just a credit bureau. With this type of model, Peck envisions moving into broader arenas such as insurance, health care, and law enforcement, to name a few. Credit is only one facet of Peck’s growth plan for TransUnion – at this time, roughly 55 to 60 percent of the company still remains focused on credit related businesses.

Some examples of how Peck hopes to reach these other markets include helping law enforcement find abducted children, helping insurance companies with underwriting auto insurance plans, and providing what-if scenario searches to better depict a person’s credit image. Peck explained that two people may appear to have very similar credit scores, but in actuality have very different spending habits. So, he has figured out a way to narrow credit profiles even more by using fact based what-if scenario algorithms.

While Peck wishes to grow the company and expand its areas of focus, he still feels very adamant about the effectiveness of a person’s credit report to accurately portray his/her ability to pay on a loan. Peck says credit scores are more accurate and advanced than ever before, and are helping to keep interest rates competitive while giving lenders greater security. Along these lines, Peck is also a firm believer that countries without a fair credit reporting system simply cannot thrive. Peck asserts that where there is no credit reporting system, it is harder for the masses to get loans, and therefore more difficult to build a middle class. And thus, the gap between the poor and the wealthy remains enormous.

Peck has been on a mission to eradicate the lack of credit reporting systems in under-developed countries. For example, he recently worked to build a credit bureau system in the Philippines and as a result, has dramatically increased the population’s ability to get loans. Through the procurement of loans, people are better able to afford necessities that we in the United States sometimes take for granted, such as a vehicle, a washing machine, and other appliances and goods. Peck strives for the same financial advancements in India as well. (For more information see: https://www.chicagotribune.com/business/ct-transunion-peck-exec-qa-0515-biz-20160513-story.html)

So, with all this talk about data being analyzed and sold to mass markets like insurance and health care, it would seem that now, more than ever, you would want to ensure your data is reporting accurately. At McCarthy Law, we can help you evaluate your credit reports to ensure all items are reporting the way they should. If we find anything that looks incorrect or in violation of the Fair Credit Reporting Act, we will go the extra mile to get those errors fixed. At McCarthy Law, we have a dedicated team of attorneys standing by to work on your credit reports. Our goal is to make sure that at the end of the day, you feel confident and secure about what your credit score says about you. Best of all, there’s no out of pocket cost to you – that’s right, it’s free! To find out more about all of our unique services offered at McCarthy Law, please give us a call at (855) 976-5777, or visit our website at https://mccarthylawyer.com/credit-report-errors/

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