Identifying Debt Settlement Risk Before Enrollment
TransUnion’s research also found predictive measures that lenders can use to help identify consumers likely to opt for third-party debt settlement programs before enrollment occurs. More than half of all debt settlement enrollees were current at the time they entered a program, highlighting the limitations of relying solely on delinquency-based monitoring.
The analysis showed that combining bankruptcy-related risk signals with trended credit attributes significantly improved identification rates. Adding TruVision attributes enabled the model to capture an additional 25% of debt settlement enrollees within the highest-risk 10% of consumers, with…