FactorTrust Aligns Solutions to Address Ability to Repay for Non-Prime Lenders

  • FactorTrust, leading provider of underbanked data, analytics and risk scoring solutions, has worked with lenders for the past eight years to ensure they can assess a consumer’s ability to repay
  • FactorTrust solutions help short-term, small dollar lenders comply with anticipated regulatory changes

ATLANTA--()--Anticipated regulation from the Consumer Financial Protection Bureau (CFPB) is expected to require lenders to determine a borrower’s ability to repay prior to providing a loan, specifically for short-term, small dollar loans. For nearly a decade, lenders have relied on FactorTrust’s robust data and analytics capabilities to assess a consumers’ ability to repay. The company remains a reliable resource and innovator for lenders looking to comply with the anticipated regulation.

FactorTrust’s History in the Industry

In the short-term, small dollar lending market, lenders require cost-effective data, analytics and scoring solutions to address ability to repay. FactorTrust works with its customers to provide data and analytics that address these unique underwriting needs, and to proactively provide both innovation and compliant solutions to customers.

“Regulators’ recent focus on consumers’ ability to repay has driven increased awareness; however this is not a new concept. Affordability and capacity to pay have been long-standing in the credit arena,” explains Greg Rable, CEO of FactorTrust. “One of the markets that we serve is short-term, small dollar lending and we know that our customers are keenly aware of, and have always addressed, ability to repay in their underwriting processes.”

In response to the anticipated regulation, FactorTrust continues aligning its suite of solutions to support lenders’ ongoing compliance. “Our company philosophy is to continue to evolve our analytical models and data assets that address ability to repay through a combination of cutting edge technologies, predictive data sources and innovative partnerships. Our focus is to keep our solutions simple, proactive, cost-effective, and in step with customer needs that meet the CFPB’s requirements,” Rable continues.

Offerings for Short-Term, Small Dollar Lenders

FactorTrust currently provides a wide range of solutions for short-term, small dollar lenders and other non-prime lending markets to help them assess a consumer’s ability to repay. Solutions allow lenders to:

  • Access the most robust non-prime tradeline data, not available elsewhere:
    • Short-term, small dollar borrowing history
    • Employment and income status
    • Debt to reported income ratio
    • Consumer stability data
  • Access secure electronic bank statements. This offers lenders the ability to:
    • Verify a borrower’s income and employment
    • Verify monthly expenses
    • Verify credit obligations
  • Employ proprietary risk models, which are statistically derived to evaluate the likelihood that an underbanked consumer will repay his or her debt.

Anticipated Regulation

Although the decision on content of proposed regulation and implementation timing are uncertain, many feel that once regulations take effect, short-term, small dollar lenders will be prohibited from extending loans without considering the borrower’s ability to repay based on income and financial obligations, as well as the number of short-term, small dollar loans previously received. With these changes, FactorTrust’s solutions will become even more critical for lenders to comply.

“As a leader in underbanked consumer data and analytics, FactorTrust will continue to remain abreast of the regulatory landscape, consumer finance industry associations and our customers and prospects to continue to cost-effectively meet the requirements of the proposed rule,” Rable concludes.

Lenders looking to discuss their specific needs in more detail should call FactorTrust at 1-844-205-4111 or visit www.FactorTrust.com for more information.

About FactorTrust

FactorTrust has compiled the most comprehensive data on the underbanked market in the industry through lending portfolios that report data daily, in real time. This daily loan performance data on millions of underbanked consumers is analyzed and combined with leading third-party data attributes in order to provide instant lending decisions using the company’s comprehensive scoring platform. Lenders are continually faced with the challenge of how to effectively and intelligently manage risk to capitalize on this segment. This analysis uses data not typically reported to the credit bureaus, and is invaluable in helping consumers have access to better borrowing options, while also providing a more accurate assessment of the consumer for lenders. For more information, please visit www.factortrust.com or contact FactorTrust at 1-866-910-8494.


Trevelino/Keller Communications Group
Savannah Weeks, 404-214-0722 Ext.110


Trevelino/Keller Communications Group
Savannah Weeks, 404-214-0722 Ext.110