Experian's Income Insight(SM) Addresses Requirements of Final Federal Reserve Board Rules for Assessment of 'Ability to Pay'

COSTA MESA, Calif., Jan. 13 /PRNewswire-FirstCall/ -- Experian® announced today that it fully supports the Federal Reserve Board rules implementing the Credit Card Act, which will require credit card issuers to assess borrowers' "ability to pay". Released yesterday, Jan. 12, the final rules explicitly allow for the use of "empirically derived, demonstrably and statistically sound models that reasonably estimate a consumer's income or assets."

To meet the growing market and regulatory need, Experian, the leading global information services company, previously announced Income Insight(SM), its latest innovation in risk-management models, as a proven predictor for determining consumers' ability to pay. Income Insight is a unique product that was developed from a deep database of verified income and built on proprietary credit attributes. Its performance statistics and model development process demonstrate that Income Insight is empirically derived and statistically sound and is entirely consistent with the new regulations. Experian's Income Insight product is currently being successfully utilized by clients to evaluate borrowers' ability to pay.

Income Insight is the first income estimation model that can be delivered in a tri-bureau fashion based on credit reports from any of the three largest credit reporting companies. The output of the model is a specific dollar value rather than a range, which would limit usefulness. Income Insight is available online and in batch and can be used in account acquisitions, account review and collections.

Key benefits of Income Insight include:

• Supports lenders' compliance with recent legislation in a cost-effective and efficient manner
• Can assist lenders with responsible provision of credit through considering borrowers' ability to pay
• Complies with the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA)
• Identifies customers while considering their complete financial picture
• Improves risk-management efforts by enabling modeled debt-to-income ratios
• Accurately segments defaulted borrowers to maximize collection processes

"We are pleased that the Federal Reserve has allowed for the use of models like Income Insight for compliance with the new regulations for assessing borrower's ability to pay," said Steven Wagner, president of Experian Consumer Information Services. "Income Insight provides our clients with the ability to conveniently and efficiently provide consumers with appropriate credit offers, while protecting their privacy."

About Experian

Experian is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2009, was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and Sao Paulo, Brazil.

For more information, visit http://www.experianplc.com.

Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners.

SOURCE Experian

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