The LexisNexis Risk Solutions study, “How Suppressing Liens and Judgments Intelligence Decreases Decision Accuracy: Impact Report,” comes approximately two years after the three major credit bureaus began suppressing liens and judgments data as part of the National Consumer Assistance Plan implementation, which went into effect in July 2017.
By the spring of 2018, Equifax, TransUnion, and Experian fully discontinued offering liens and judgments data on U.S. consumers. The lack of liens and judgments intelligence creates a significant decisioning disadvantage for lenders and creditors trying to accurately assess consumer creditworthiness.
Key Findings from the Report
• A consumer with a lien or judgment against them over-scored by 16 points on average, meaning their actual default rate is higher than their score would indicate.
• In auto lending, those with a lien or judgment who had a credit bureau score above 700 defaulted at two and half times the rate than consumers without a lien or judgment.
• Out of a sample of only 1,900 auto loans, borrowers with a lien or judgment recorded more than $61 million in charge-offs.
• In the auto lending space, at a 620 credit bureau score cutoff, knowing a customer has a lien or judgment increases a lender's ability to identify likely defaulters by 36%.
Download our Liens and Judgments Impact Report to learn more about the negative consequences of suppressing liens and judgments data from credit decisions.