TransUnion Responds to Growing Challenge of Credit Washing with Pioneering Fraud Detection Solution

Core Insights - TransUnion has launched an innovative Credit Washing Solution aimed at helping financial institutions detect and combat the suppression of legitimate credit data, a practice known as credit washing [1][7] Industry Overview - In 2025, approximately 5% of U.S. consumers had charged-off accounts suppressed for atypical reasons, leading to an estimated $10 billion in debt being erased from credit reports [2] - There has been a nearly 700% increase in consumer-initiated charge-off suppressions over the past two years and a 200% increase in lender-initiated suppressions over the last four years [3] Company Strategy - The Credit Washing Solution utilizes advanced analytics and machine learning to identify hidden risks associated with credit washing, allowing lenders to make more informed decisions [3][7] - The solution is designed to help lenders route high-risk consumers for manual review, optimize credit limits, and reduce early charge-offs [6] Product Features - The solution includes three powerful indicators: a Credit Washing Default Score, Tradeline Washing Attributes, and Inquiry Washing Attributes, which help assess the risk of consumers with a history of charge-off suppression [8] - It is initially available as an add-on to TransUnion's credit and model reports and can be used during prescreen, prequalification, and portfolio review processes [6] Market Impact - The suppression of derogatory data can inflate a consumer's credit risk by at least one risk tier, with some cases shifting from subprime to super prime overnight [4] - Consumers with atypical charge-off suppressions are 3.5 times more likely to charge off a new account within a year compared to those without credit washing activity [4]