New study on U.S. credit card debt advises card issuers on how they should operate in order to prevent a surge in losses
ATLANTA (August 15, 2017) – LexisNexis® Risk Solutions, a part of RELX Group plc, has been named in the Mercator Advisory Group report, “U.S. Credit Card Debt: Circle the Wagons and Fortify,” as a data provider offering specialized tools, which give collections departments an edge.
Mercator’s Brian Riley suggests that the U.S. Card business is becoming riskier, making it urgent for issuers to take stock in their collection tools. Targeted, more effective collection strategies will ensure that issuers who wanted to be “top of wallet” are also “top of the household budget.”
Data enhancement is one of the “nine essential facets for a well-designed collection strategy,” according to the Mercator report. It is critical in assessing whether a consumer who defaults on a credit card payment might also default on other loans.
“Routine national credit bureau updates add value, but specialized tools, such as those offered by LexisNexis Risk Solutions, integrate into the workflow and strategic process with keen insights on a customer’s ability to repay, right-party contact numbers, and skip-tracing reconnaissance,” says the report.
“We are pleased to be included in this Mercator Advisory Group report, which recognizes our strength as a leader in providing data and analysis to the collection industry,” says Linda Straub Jones, director of collections compliance, LexisNexis Risk Solutions. “We work closely with clients to assess their needs and then provide the necessary customer data to create a smooth collections process.”
Having an effective collections strategy is an area of focus for credit card issuers, as household debt outpaces household incomes and defaults are on the rise. According to the Federal Reserve Bank of New York, U.S. household debt increased by $460 billion in 2016, the largest increase in 10 years. Meanwhile, credit cards with 30-day delinquent balances increased from 5.15 percent to 5.90 percent between Q1 2016 and Q1 2017.
The report also notes, “LexisNexis Risk Solutions can also enhance data with information covered under the Fair Credit Reporting Act, such as bankruptcy, civil and criminal judgments, and beyond the limits of FCRA, including telephone contact points and residential information.”
“This report highlights the importance for credit card issuers to use data and analysis that goes beyond what is offered in traditional credit reports,” says Straub Jones. “LexisNexis Risk Solutions’ advanced linking technology accurately links consumers to addresses and phone numbers, so that credit card issuers can communicate effectively with the customer about resolving delinquent accounts.”
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About LexisNexis® Risk Solutions
At LexisNexis Risk Solutions, we believe in the power of data and advanced analytics for better risk management. With over 40 years of expertise, we are the trusted data analytics provider for organizations seeking actionable insights to manage risks and improve results while upholding the highest standards for security and privacy. Headquartered in metro Atlanta, USA, LexisNexis Risk Solutions serves customers in more than 100 countries and is part of RELX Group, a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.lexisnexis.com/risk.