Trans Union Corp.'s bid to form a credit reporting agency with a group of top banks in Mexico has stalled, a company executive said last week.

Oscar Marquis, Trans Union's senior vice president and general counsel, said the Chicago-based credit bureau broke off negotiations with the Association of Mexican Banks because of the service limitations the banks wish to place on potential customers. The association represents the country's three largest banks, known as Banamex, Bancomer, and Serafin.

'We Know That Won't Work'

"They wanted to have a credit bureau with limited access to outside companies," Mr. Marquis said.

"We're in the credit reporting business and we know that won't work."

The arrangement -- initiated with a December 1993 letter of intent -- officially is still viable. But Mr. Marquis said the possibility of the two parties striking a deal "looks doubtful."

He added that limited access to credit reporting continued to be a sticking point in negotiations.

Since passage of the North American Free Trade Agreement a few months ago, many credit-related businesses have headed south.

In January, TRW Inc., a competitor of Trans Union in the credit reporting business, joined with a Mexican investor group, Grupo CIS, to provide credit reports south of the border.

Other Deals Signed

First Data Resources Inc., the Omaha-based card processing subsidiary of First Data Corp., signed an agreement in February with Multibanco, Mexico's fourth-largest retail bank with nearly 500,000 credit card accounts.

Additionally, Citicorp, lending in Mexico since 1989, provides full banking services there. The New York-based money center also has engaged in an ATM sharing agreement with Bancomer.

Other companies, such as Diebold Inc. and Total System Services Inc., also have gained a solid foothold in Mexico through agreements and acquisitions.

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