: "Improved concessions improve the customers' performance."
ing agencies and creditors two weeks ago.The bureau said it hopes agencies will use it to prioritize the flood of customers they are likely to get when the bankruptcy law goes into effect.
"There was a need in the industry for a more analytical approach to how counselors and lenders deal with customers," Mr. Rosenthal
said.The score will help counselors manage their new customers "without them having to add a huge incremental staff." TransUnion
also hopes the debt-management score will help counselors determine the action appropriate to the person's debt burden and overall financial situation, Mr. Rosenthal
said.Though debt-management plans are their most common , and extreme , remedy, counselors may also recommend budget planning or consolidating loans for customers in better shape, he
...Mike Rosenthal, the director of TransUnion's debt-management unit, predicted that the tests, which will continue until "enough data is collected," will show that "improved concessions improve the customers' performance."
The score is calculated using TransUnion's consumer information and data from initial counseling sessions, Mr. Rosenthal
said.The information is entered into the bureau's Web-based software, which then calculates and generates the score.Three counseling agencies have already signed up, he
Issuers Test Needs-Based Approach to Concessions