TransUnion Launches Bankruptcy-Specific Risk Model to Help Credit Grantors Identify Potential Losses Before They Occur

    CHICAGO--April 9, 2002--TransUnion, a leading global information solutions company, announced today the release of TransRisk Bankruptcy(SM), its new consumer risk model designed to calculate the likelihood of a prospect, applicant or accountholder filing for bankruptcy within twelve months of scoring.
    According to statistics released in February by the Administrative Office of the U.S. Courts, bankruptcy filings have increased 90 percent since 1990, reaching an all time high in 2001 rising 19 percent to 1,492,129, up from 1,253,444 in 2000. Consumers accounted for nearly all those filings.
    "Despite recent indications of improving economic conditions, lenders continue to be concerned about a potential surge in bankruptcies," said Chet Wiermanski, vice president of TransUnion. "TransRisk Bankruptcy(SM) was specifically developed as an early bankruptcy protection tool for credit grantors to help reduce bankruptcy losses, especially instances of `surprise' bankruptcies. Based upon client validations, TransRisk Bankruptcy(SM) is superior to similar models currently on the market."
    Because TransRisk Bankruptcy(SM) was developed on recent credit data, it is better adapted to identify credit behavior patterns leading to bankruptcy than older bankruptcy models, improving a credit grantor's ability to identify potential bankruptcies before they occur. In addition to improved bankruptcy prediction, TransRisk Bankruptcy(SM) has also proven to successfully predict charge-offs and repossessions. By leveraging TransUnion's vast experience and understanding of credit information, TransRisk Bankruptcy(SM) scores more credit files, without sacrificing performance.
    "Credit grantors need to make informed decisions to alleviate losses to their business and can do so through a tool like TransRisk Bankruptcy(SM). When coupled with one of our other scoring products or account monitoring solutions, TransRisk Bankruptcy(SM) can help mitigate bankruptcy losses, leading to significant improvements in profitability," added Wiermanski.
    The TransRisk Bankruptcy(SM) risk model will assist credit grantors in deciding whether or not to approve or decline applicants and in setting credit parameters. It can also help portfolio managers focus collection efforts on those accountholders likely to declare bankruptcy and thereby not incur preventable losses. For example, TransRisk Bankruptcy(SM) can decrease the cases where credit limits are inflated or reduced due to decisions based solely on delinquency scores.
    TransRisk Bankruptcy(SM) works hand-in-hand with other TransUnion products such as TransRisk New Account(SM), TransRisk Auto(SM), TransRisk Account Management(SM) and TransRecovery(SM) to help credit grantors reduce their exposure to risk in this era of high losses.

    TransUnion is a leading global information solutions company that customers trust as a business intelligence partner and commerce facilitator. TransUnion offers accurate and reliable financial data through a broad range of products and services that enable customers to manage risk and capitalize on market opportunities. The company uses leading-edge technology coupled with extensive analytical capabilities to prevent fraud and facilitate credit transactions between businesses and consumers across multiple industries and channels, including the Internet. Founded in 1968, Chicago-based TransUnion employs 3,600 associates that support clients in 24 countries. Visit us at www.transunion.com.