Consumers Respond to Payment Reporting

In a recent study by the Political & Economic Research Council (PERC)¹ on the impact of credit reporting of payment data on the consumer, PERC found significant benefits for companies that report their payment data to a consumer reporting agency (CRA).

From the Consumer Perspective, PERC found:

• Consumers confirmed that Credit Reporting alters their Payment Behavior. One-half of all consumers surveyed by PERC indicated they would be more likely to pay their bills on time—even during economic duress—if their payments are fully reported to one or more CRAs and impacted their credit scores.
• Many Consumers are Unaware of What Payments are Reported: Many consumers surveyed did not know what types of payments are reported to CRAS and most did not even know that mortgages and auto loan payments were reported.

From the Company Perspective, PERC found:

• Companies that Report Payments see Changed Consumer Payment Behavior: Customers are more likely to pay on time when they are aware that their personal credit standing will be affected by their payment actions.
• The Benefits of Credit Reporting Greatly Exceed Costs:: All firms surveyed in the PERC study said that the benefits of reporting are at least equal to the costs of reporting. The benefits they listed included:
  • Decrease in late payments
  • Reduction in charge offs
  • Improvement in customer relationships
  • Reduction in fraud
• Communication is Important to Fully Realize the Benefits of Payment Reporting: The study confirmed that consumers are typically unaware of which industries report payments and most are unaware of payment reporting in general. Communication is essential to reaping the full benefits of payment reporting.

PRBC® Consumer Reporting Agency makes it easy for you to fully report your consumer payments and to realize the benefits of payment reporting. At the same time, your company becomes a part of the growing number of companies that are bringing millions of underserved consumers into the mainstream economy. Reporting to credit bureaus, like MicroBilt’s PRBC, is your best resource for rewarding consumers who consistently pay you on time and collecting from those who fall delinquent.