Experian PLC is selling a new service to automobile lenders the credit bureau says can flag used vehicles with title problems.
Troubled vehicles "can create significant losses for lenders if they haven't identified vehicle history problems when the loan is originated," said Melinda Zabritski, the director of automotive credit for Experian Automotive, in a press release on Monday. "By leveraging information within AutoCheck Market Review, lenders can identify the markets and dealers generating the greatest number of these loans."
Of the 20 million vehicles that Experian says are purchased every year through financing, about 7% have a "major problem," Experian said in the release. In turn, such vehicles lead to higher charge-off rates for loans.
The service lets lenders view the overall number of vehicles financed with problems and analyze their market at the ZIP code level.