In the bulletin, a service provider to these financial institutions is defined as “any person that provides a material service to a covered person in connection with the offering or provision by such covered person of a consumer financial product or service”. Vendors, then, would include any entity the financial institutions contracts with such as risk assessment services, software providers and the like.

The CFPB said it will take a close look at these service provider’s interactions with consumers and will hold all appropriate companies accountable if legal violations occur. In addition, the CFPB asserts that supervised banks and non-banks are contracting with honest third parties to protect consumers from irresponsible and negligent service providers.

The steps recommended in the CFPB bulletin:

- Conducting thorough due diligence to verify that the service provider understands and is capable of complying with Federal consumer financial law.

- Requesting and reviewing the service provider’s policies, procedures, internal controls and training materials to ensure that the service provider conducts appropriate training and oversight of employees or agents that have consumer contact or compliance responsibilities.

- Including in the contract with the service provider clear expectations about compliance, as well as appropriate and enforceable consequences for violating any compliance related responsibilities, including engaging in unfair, deceptive, or abusive acts or practices.

- Establishing internal controls and on-going monitoring to determine whether the service provider is complying with Federal consumer financial law.

- Taking prompt action to address fully any problems identified through the monitoring process, including terminating the relationship where appropriate.

Read the entire CFPB bulletin here.

DataX has taken many steps to provide our clients with the assurance of compliance and internal due diligence. DataX maintains strict control of all data and the entire work environment. We are committed to the integrity of all information and maintain strict policies to ensure Fair Credit Reporting Act compliance.

To meet these standards, DataX routinely performs internal IT security reviews of applications, systems and IT infrastructure. DataX adheres to PCI standards and all data is stored in a SAS70 compliant data center. DataX also released the Quality Assurance Audit and Report Card program, which assures the quality and accuracy of consumer credit data in our bureau.

For more information, please contact Jeff Woltemath at 1-800-295-4790 or via email.

DataX’s Comprehensive Debit Report provides a level of insight into a consumer’s banking behavior like no other banking product in this business.

By providing the three-year history of a consumers direct deposit account inquiries and a five-year history of any accounts being forcibly closed all in real time, this data is incredibly predictive of loan performance and default rate.

Furthermore, the amount of detail provided, such as retail bounced check information and check printing order history, will assist in triangulating data by cross referencing consumer supplied information with reported information.

The data is updated on average nearly 350,000 times each day.

Below are just a few of the main attributes of the Debit Report:

1. Access to over 300 million consumer records in real time.
2. Recognize which consumers change checking accounts often.
3. Identify consumers with a history of fraud.
4. Debit data provided by 90% of the nation’s financial institutions
5. A predictive risk score
6. Knowledge of financial behavior outside of the payday space to aid in decisioning.

DataX recently did a large retro data study and I would be happy to discuss and provide our findings as well as discuss recommended waterfall placement.

Please contact me with questions.

David Paul
David.Paul@DataXLTD.com
954-290-1693

LAS VEGAS – March 6, 2012 – Today, DataX [www.DataXLtd.com], the industry-leading real-time credit reporting agency and data verification provider, welcomes Joseph Zhou to the company as Vice President of Analytics. Zhou will improve portfolio performance and profitability for the company’s clients by spearheading advanced statistical modeling techniques that mitigate risk and optimize the underwriting process.

“DataX continues to strategically evolve within the consumer financial market, bringing our clients the most advanced analytical and technically-driven solutions possible,” said Nanette Leonard, Executive Vice President at DataX. “Joseph’s vast experience in both the finance and data industries will add an incredible lift to DataX’s services. He has a great understanding of consumer financial data and knows how to best leverage information to better serve our lending partners.”

Zhou has a robust background managing and developing analytical programs to help companies better target their core audience and maintain valuable customer relationships. Specifically, his experience developing programs that identify fraudulent data will help DataX’s clients minimize credit risk and limit unexpected financial losses.

“I’m thrilled to be added to DataX’s notable roster of industry leaders,” said Joseph Zhou, Vice President of Analytics. “Joining this team aligns with my professional vision—to continually push the industry forward by helping to shape its best practices.”

Before joining the DataX team, Zhou was the Vice President of Marketing Analytics at M&T Bank, where he led a team of business and statistical analysts who provided marketing analytics for all departments within the organization. Prior, he was Vice President of Analytics and Modeling at Citigroup.

Zhou received his doctorate in Demography/Applied Statistics and master’s degree in Sociology from Brown University, as well as a bachelor of arts in English from Hebei University.

DataX will be speaking on the panel “The Latest in Consumer and Product Trends” at the annual CFSA (Community Financial Services Association of America) conference on March 7-9, 2012 (www.cfsaa.com). This session will take a closer look into middle-market consumers and what you can do to be prepared for this new growing consumer base. This session will focus on the expansion of the middle-market consumer, how to recognize them, what mix of consumers do we expect to see in the future and discuss how to make them profitable. The company will be exhibiting at the conference at booth number 502.

About DataX Ltd.
DataX, Ltd., a Selling Source, LLC company, specializes in developing industry leading risk analytics focused on positive decisioning. With the most advanced Credit Reporting bureau in the market, the DataX approach to fraud and risk management solutions goes beyond any other. Armed with this data intelligence, lenders can boost profitability through smarter decisions. For more information, visit www.DataXLtd.com.

About Selling Source, LLC
Selling Source, one of the largest privately-held digital marketing companies in the United States, provides customer acquisition and data services. The company operates proprietary, scalable technology platforms to cost effectively deliver a substantial volume of precisely targeted, real-time sales leads while maximizing return on investment for advertisers and publishers. Continually expanding its broad online reach via an array of diverse branded web properties, as well as through external partner relationships, the company attracted over 550 million visitors to its branded web properties in 2010. Selling Source has a strong, varied client base and specializes in two key verticals: Consumer Specialty Finance and Performance-based Marketing.

London Bay Capital, a private equity firm based in San Francisco, acquired a controlling interest in Selling Source in December 2007. For more information, please visit www.SellingSource.com.

Over the past 18 months, DataX has been working diligently to assure the quality and accuracy of its consumer credit data. As a result, we have launched the Quality Assurance Audit and Report Card program. This unique tool is provided to all DataX clients on a quarterly basis. The QA Audit reflects the quality of consumer credit data as reported back by lenders and entered into the DataX databank.

Ultimately, if this data is not reported, or is reported incorrectly, it can adversely affect the consumer’s risk profile and impede underwriting rules. Good predictability comes from clean and accurate data that properly reflects consumer behavior. At DataX, we know that with accurate readings of consumer behavior and patterns, we can help our clients discern between low and high risk consumers, thus providing lending intelligence for profitable performance.

As online lenders are non-traditional service providers for specialty financial products such as payday loans, cash advances and small dollar loans, they will be subject to increasing government oversight and regulation. That’s why DataX strongly encourages all online payday lenders to take the reporting process very seriously. The quality and precision of consumer credit data is vital to the lending industry.

To that end, the Quality Assurance Audit and Report Card program upholds DataX’s mission to provide superior consumer credit reporting. Trust DataX to assist you with the most advanced risk assessment solutions, and to show you how to get the most out of their complimentary, quarterly Quality Assurance Audit and Report Card.

For additional information contact:  Eric Agrelius at 1-800-295-4790 or sales@dataxltd.com.

SUNRISE, Fla. – October 24, 2011 – Today, DataX, a leading real-time credit reporting agency and data verification provider for lenders, unveils its new company AXIS, Application Xpress Information Systems, a cloud-based solutions provider for the specialty finance industry. The company’s solutions – as well as consulting and data services – address market needs by enabling businesses to increase efficiencies and security by automating manual processes, and enhance their customer experience, all while reducing exposure to fraud.

 
“The first of its kind, AXIS’s cloud solutions offer the highest quality to maximize profitability. We are especially excited about what we can do for the retail specialty finance industry. Any facility with a computer and web access can use AXIS’s turn-key solutions to operate more efficiently and with greater confidence,” said Nanette Leonard, Executive Vice President of DataX. “Combining cloud based solutions, and our consulting and data services, we work collaboratively with each client to review their current application process and seamlessly integrate an automated solution.”
 
AXIS will reveal its first product to a select few at the 23rd Annual FiSCA Conference & Exposition, October 28-30 in Grande Lakes Orlando.
 
About AXIS LLC
AXIS, Application Xpress Information Systems, is a cloud computing company that provides turn-key solutions for retail and online payday lenders. The company’s solutions, and consulting and data services enable businesses to increase efficiencies and security by automating manual processes and enhancing the customer experience, all while reducing exposure to fraud.
 
AXIS is a subsidiary of DataX. For more information, visit www.AXISLLC.com.
About DataX Ltd.
 
About DataX Ltd.
DataX, a Selling Source company, specializes in developing industry leading risk analytics focused on positive decisioning. With the most advanced Credit Reporting bureau in the market, the DataX approach to fraud and risk management solutions goes beyond any other. Armed with this data intelligence, lenders can boost profitability through smarter decisions. For more information, visit www.DataXLtd.com.

DataX, FCRA-compliant credit reporting agency, specializes in developing industry leading risk analytics focused on the non-prime consumer. By leveraging the most advanced credit reporting in the market, its proven approach to fraud and risk management solutions extends well beyond any other resource. DataX provides a comprehensive suite of real-time credit reporting, data verification and authentication services that benefit financial institutions and private equity lenders.

Through this joint venture, lenders are able to deploy and manage underwriting strategies configured to isolate and reject high-risk consumers and potential fraudsters while simultaneously identifying the most profitable borrowers.

“Our partnership with DataX provides ample opportunities to better refine the industry’s lending protocol,” said Joe Fitzpatrick, CEO and Founder of TranDotCom. “Joining forces will undoubtedly deliver the technology solutions the creditors and financial institutions are looking for when trying to lower lending risk and increase profitability.”

TranDotCom has been providing software solutions for the consumer finance industry since 2000. Its Loan Management System is a highly flexible web-based software solution that provides the tools needed to operate a successful consumer finance lending business. Further, TranDotCom recently announced its new Line of Credit product and enhanced Installment solution that enables lenders to offer a more flexible loan product that will appeal to a large group of consumers.

About DataX Ltd.
DataX, Ltd., a Selling Source, LLC company, specializes in developing industry leading risk analytics focused on positive decisioning. With the most advanced Credit Reporting bureau in the market, the DataX approach to fraud and risk management solutions goes beyond any other. Armed with this data intelligence, lenders can boost profitability through smarter decisions.

About TranDotCom Solutions, LLC
TranDotCom Solutions is a leader in automated consumer finance transaction processing, providing a full range of consulting, software, support and transaction processing services which allow lenders to be more competitive and highly efficient. TranDotCom Solutions understands and specializes in all of the components of consumer finance lending including payday advance and line-of-credit products. TranDotCom pioneered the industry’s first web-based transaction management system and has been processing transactions since 2000, supporting storefront and online lenders in the United States, Canada, and the United Kingdom. TranDotCom may be reached at 678-433-1200 or sales@tdcemail.com .

About Selling Source, LLC
Selling Source, LLC [www.SellingSource.com] is one of the largest integrated digital marketing companies in the United States. The company owns and operates branded web properties which generate significant organic traffic. It also provides extensive and customizable solutions to develop and manage brands, acquire consumers cost effectively and maximize return on investment for advertisers and publishers. Combining unparalleled consumer insight and media reach, Selling Source utilizes its industry-leading technology to offer scalable results in the areas of online and offline direct marketing, media buying, list management, data solutions, brand management, website solutions, search, display advertising, affiliate marketing and credit reporting. Selling Source is owned by London Bay Capital, a private equity firm based in San Francisco.