TransUnion Introduces New Recovery Scores Containing Updated Consumer Data and Newest Modeling Technology
LAS VEGAS, NV--(Marketwire - February 8, 2011) - TransUnion announced today at the Debt Buyers Association Conference the introduction of two new recovery models -- Recovery Propensity Score and Recovery Yield Score. Both of these scores were developed using TransUnion's freshest consumer data set and advanced modeling technology, allowing customers to supplement their own internal data into the scores to better target those accounts most likely to pay while limiting resources expended on debtors unlikely to pay.
"TransUnion Recovery Scores allow collectors to spend more time recovering debt and less time pursuing uncollectable accounts," said Tom Jordan, vice president of solution sales at TransUnion. "While traditional models focus on recovery incidence, TransUnion Recovery Scores dig deeper, determining accounts which will yield the highest recoveries for your bottom line."
The TransUnion Recovery Propensity Score uses the most recent data available to reflect dynamic economic conditions and predicts the likelihood that an account will pay $50 or more within 12 months. The TransUnion Recovery Yield Score complements the Recovery Propensity Score by including components identifying debtors likely to pay more, enhancing recoveries in the most liquid populations.
In thorough and comprehensive validation tests against the previous recovery model, the scores delivered impressive results.
When testing the scores on medical debt accounts, the new models scored 29.1 percent more accounts due to less restrictive minimum scoring criteria. They also increased total dollars paid by more than 12 percent within the top 25 percent of scores.
Through other validation tests, TransUnion determined liquidations for student loan debt increased by over 32 percent, demand deposit account liquidations increased by 12 percent, and bankcard liquidations increased by 9 percent within the top 25 percent of each population segment.
More information about the new TransUnion Recovery Scores can be found at www.transunion.com/collections or at Booth #517 at the Debt Buyers Association Conference.
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs associates in more than 25 countries on five continents. www.transunion.com/collections