Clarity Services, a provider of thin-file and underbanked consumer data reporting, has called on Experian to provide identity verification and fraud detection services for its subprime market product.
Clarity will use Experian’s Precise ID platform in its Clear Subprime ID Fraud product to provide identity verification points and a custom Clarity Fraud Score. With this product, Clarity aims to reduce lender fraud losses and improve loan acceptance rates for the subprime market.
Within the subprime market, lenders face the challenges of detecting fraud in the application process, misuse of Social Security numbers and other forms of identification problems associated with a particular bank account. Clarity’s custom score and report helps lenders detect and identify possible warning flags across applications.
Clarity says that after introducing its Subprime ID Fraud Score last October, credit default rates have dropped 4% to 5% and loan acceptance rates have increased for good customers. These figures are based on over one million reports.