Article Abstract:
The proposed standard for credit bureau reporting adopted by an inter-industry group on Sep 3, 1987 could improve accuracy and eliminate some current problems. A common understanding and application of past due ratings and the timeliness of reporting delinquent accounts are two areas that would be corrected. The problem of deleting tradelines and changing derogatory status to current would also be reduced, although credit grantors are often hard pressed to respond to verification requests within the time period prescribed by law. Problems requiring future study are split inquiries from competitive credit bureaus and the 'edit out' of some information from the credit grantor's monthly tapes.
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Article Abstract:
Proposed revisions of the Fair Credit Reporting Act (FCRA) serve to illustrate the need for credit grantors to facilitate improved business dealings with credit bureaus through the enhancement of its reporting, correcting, and reverification handling services. The planned amendments to the FCRA include the empowerment of the Federal Trade Commission with regulatory powers over credit bureaus and the creation of clauses for creditor liability due to inaccurate data. Metro formats are the desired format segments for improving credit reporting. The update and loading of bureau files, possibly through multiple-part transmittal, is also a function of the credit grantors.
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Article Abstract:
Organizations can use several methods to measure the effect of credit card ownership on sales. The new market introduction method involves comparing the results of two similar markets, one in which credit cards have been introduced, and one in which they have not. The split market blitz method involves selecting a market, dividing the market into a group of test stores and a group of control stores, and evaluating the results of credit promotion in the test stores. The catalog pre-screen method involves selecting potential credit card customers on the basis of past catalog purchases, offering credit to the test group, and evaluating the effect on sales.
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