Metro 2 – Credit Bureau Reporting
Whether you are working with a prime or subprime bureau. Credit Reporting Agencies (CRAs) all require members to report performance of each individual loan, line of credit, mortgages, credit cards or any other forms of credit being offered to the individual consumers.
In the United States, Consumer Data Industry Association (CDIA), the trade organization representing most of the consumer credit reporting agencies published a standard for members to report credit performance data. This standard is called Metro 2 Format.
Besides the standardization of data reporting of a consumer’s credit history. Fair Credit Reporting Act (FCRA), a federal law mandates all companies that furnishes consumer credit account data on a regular basis to correct and update consumer credit history.
It is essential that all lenders, no matter what types of loans or credit they offer must report consumer credit history. Failure to do so will be a violation of the Fair Credit Reporting Act and could put your business in jeopardy, heavy fines or worse.
Accurately reporting consumer credit history is one of the best thing you could do for a consumer. The reporting standards are established and credit reporting agencies all have robust processes to collect reported information. The missing link is often the translation between your Loan Management System to CDIA’s Metro2 format. MaxDecisions, Inc. has helped many clients to bridge this gap and have been reporting with the standard Metro 2 format to Prime and Subprime bureaus alike.
Credit Bureau Reporting Success Circle
- Data Collection
- Accuracy of Reports
- Consistency in Updates
Remember to update your entire consumer database. Payments might have bounced or recovered since your last attempt. Consumer might have made payments to an aged and charged off account. All of these nuisances must be considered when you are updating your credit bureau reports.
Metro2 Reporting Made Easy
Accurately report consumer history to all credit bureaus is not only the best thing you could do for a consumer to help him or her to build strong and robust credit history, it is also required by Fair Credit Reporting Act (FCRA). To comply however it doesn’t have to be complicated. Here are some quick bullet points on the Metro 2 Format.
- Consumer Data Industry Association (CDIA) standardized reporting
- All Credit Bureaus have developed robust in take processes
- You can report on a weekly or monthly frequency
- A routine and an audit trail with respect to consumer credit history reporting is essential part of your compliance program
Credit Bureau Report & Metro2 Format
It is federal law that all lenders or credit information furnishers must report consumer credit history to all CRAs or credit reporting agencies. The specific federal law called the Fair Credit Reporting Act must be followed and failure to do so will result in heavy fines.
There are software out there that can assist you to make it into the Metro 2 format. However these software have the “first-mile” issue where it doesn’t know whether you’ve categorized a loan as current, late, etc correctly. It takes what you report as gospel. There are obvious risk involved and you might need experts help you.
Sometimes your Loan Management System might come with this functionality but it often misreport and worse doesn’t report to the appropriate credit bureaus.
MaxDecisions has helped lenders to understand detailed nature of their loan portfolio at a payment by payment basis. We help our clients to reconstruct what’d happened to a consumer’s loan performance and accurately report the loan status on a weekly or monthly basis. We work with all major credit bureaus and our Metro 2 formatted files have passed their in take process time and a gain. Our services takes the pressure off of lenders so they can focus on what they do well.
Credit Bureau Reporting - Metro2
Metro 2 Format is a standardized reporting format developed by Consumer Industry Data Association. It is a reporting standard widely adopted by consumer credit bureaus or CRAs (Consumer Reporting Agency). Consumer lenders are required by federal law to report accurate and timely information to consumer reporting agencies. Untimely or inaccurate reporting will result in heavy fines and additional security of your business. Here are some resources we found helpful: