Background

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Background Credit reporting agencies are a key
player, helping facilitate modern
commerce Credit records help predict the risk
of a transaction Credit bureaus actively gather
data about consumers and businesses but make
it difficult for the subjects of their reports
to review their own records In the US, the
Fair Credit Reporting Act regulates credit
bureaus
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Trust relationships Between credit bureaus and
their customers (credit report users) not
between bureaus and the subjects of their
reports Secret scoring algorithms dont
explain why a consumer received a low
score Correction of erroneous data is
difficult Consumers have no control over the
release of their personal data to creditors
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Identity theft due to Social Security Numbers
Fraud Assistance at Trans Union 1992 35,235
cases 1997 522,922 cases Social Security
Number misuse investigations 1996 305 1997
1,153 1999 39,000
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International Credit Rules / international
reputations EU has strict rules protecting
individual credit histories Also enforces strict
rules about notification Only one of the big
three bureaus is active in Europe Foreigners
find that perfect credit records in their
home countries dont follow them to new
places. Effectively, they start anew after every
move. Either have a US citizen co-sign, or be a
student at a good college, and you will be
allowed to get a bank account. Then you get an
ATM card, then a check card, and finally after a
few months of credit history you get your first
credit card with a limit of 300. After four
years I finally have good credit limits and any
card I might apply for. In a few more years
Ill be able to get a mortgage for a
house. - International student
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Things you can do on the Internet
Order a sandwich
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Things you can do on the Internet
Send flowers
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Things you can do on the Internet
Pay a bill
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Things you can do on the Internet
Balance your checkbook
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Things you can do on the Internet
Trade stocks
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Things you can do on the Internet
Buy US Treasuries
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Manage your credit reputation
Something you cant do on the Internet
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Credit bureaus in the news Mar. 3 Financial
services groups plan to fight tough new privacy
laws being considered in state legislatures. Mar
. 8 FTC orders Trans Union to stop selling
consumer reports in the form of targeted
marketing lists Apr. 10 E-Loan allows
consumers to see their FICO scores Equifax
cuts its data feed. E-Loan president Consumers
have the perfect right to have their
credit information and use it as they see
fit. Apr. 10 Credit data vendors are fighting
credit unions attempts to improve privacy for
their members.
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The current environment FCRA
restrictions Stringent privacy rules in the
EU Big three continuing pursuit of
heavily-regulated consumer-hostile activities
and information sales
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Emerging Trends Increase in small or
one-time-only Internet transactions Increase in
small-scale international transactions High
awareness of privacy issues Skyrocketing use
of SSN for identity thefts Development of XBRL
(Extensible Business Reporting Language)
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A credit report is like a permanent record for
adults
 You cannot change the contents of your
record  You must ask permission (and often pay)
to review your record  You have little control
over who else sees it
Doesnt that seem odd?
(say YES)
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What if you had some control over your permanent
record ?
creditbinder brings consumer control to credit
histories and personal records improves the
quality of information for all interested parties
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How does it work ?
Credit gathering
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How does it work ?
Infomediary queries
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How does it work ?
Secure one-time identifiers
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How does it work ?
Long-term identifiers
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Target audiences Educated, affluent,
privacy-aware new-economy consumers Emerging
industries - Internet and highly-wired new
economy companies Emerging markets - the
developing world, C2C microeconomies Internationa
l consumers and companies who need a global
credit/reputation dossier
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Extensions Medical records Personal profiles
you release to selected marketers Unlisted
e-mail addresses
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Consumer controlConsumer cooperationBorderless
credit reputationsSecurity from ID theft and
abuse