Background Credit reporting agencies are a key player, helping facilitate modern commerce Credit records help predict the risk of a transaction Credit bureaus actively gather data about consumers and businesses … but make it difficult for the subjects of their reports to review their own records In the US, the Fair Credit Reporting Act regulates credit bureaus

Trust relationships Between credit bureaus and their customers (credit report users)… not between bureaus and the subjects of their reports Secret scoring algorithms dont explain why a consumer received a low score Correction of erroneous data is difficult Consumers have no control over the release of their personal data to creditors

Identity theft due to Social Security Numbers Fraud Assistance at Trans Union: 1992: 35,235 cases 1997: 522,922 cases Social Security Number misuse investigations: 1996: : 1, : 39,000

International Credit Rules / international reputations EU has strict rules protecting individual credit histories Also enforces strict rules about notification Only one of the big three bureaus is active in Europe Foreigners find that perfect credit records in their home countries dont follow them to new places. Effectively, they start anew after every move. Either have a US citizen co-sign, or be a student at a good college, and you will be allowed to get a bank account. Then you get an ATM card, then a check card, and finally after a few months of credit history you get your first credit card with a limit of $300. After four years I finally have good credit limits and any card I might apply for. In a few more years Ill be able to get a mortgage for a house. - International student

Things you can do on the Internet Order a sandwich

Things you can do on the Internet Send flowers

Things you can do on the Internet Pay a bill

Things you can do on the Internet Balance your checkbook

Things you can do on the Internet Trade stocks

Things you can do on the Internet Buy US Treasuries

Something you cant do on the Internet Manage your credit reputation

Credit bureaus in the news Mar. 3: Financial services groups plan to fight tough new privacy laws being considered in state legislatures. Mar. 8: FTC orders Trans Union to stop selling consumer reports in the form of targeted marketing lists Apr. 10: E-Loan allows consumers to see their FICO scores; Equifax cuts its data feed. E-Loan president: Consumers have the perfect right to have their credit information and use it as they see fit. Apr. 10: Credit data vendors are fighting credit unions attempts to improve privacy for their members.

The current environment FCRA restrictions Stringent privacy rules in the EU Big three continuing pursuit of heavily-regulated consumer-hostile activities and information sales

Emerging Trends Increase in small or one-time-only Internet transactions Increase in small-scale international transactions High awareness of privacy issues Skyrocketing use of SSN for identity thefts Development of XBRL (Extensible Business Reporting Language)

A credit report is like a permanent record for adults You cannot change the contents of your record You must ask permission (and often pay) to review your record You have little control over who else sees it Doesnt that seem odd? (say YES)

What if you had some control over your permanent record ? creditbinder brings consumer control to credit histories and personal records improves the quality of information for all interested parties

How does it work ? Credit gathering

How does it work ? Infomediary queries

How does it work ? Secure one-time identifiers

How does it work ? Long-term identifiers

Target audiences Educated, affluent, privacy-aware new-economy consumers Emerging industries - Internet and highly-wired new economy companies Emerging markets - the developing world, C2C microeconomies International consumers and companies who need a global credit/reputation dossier

Extensions Medical records Personal profiles you release to selected marketers Unlisted addresses

Consumer control Consumer cooperation Borderless credit reputations Security from ID theft and abuse