Deciphering dishonours

Posted by Rick Meredith on 2020-09-16 15:09 AEST
Rick Meredith
Find me on:

What do you need to know about dishonours?

Understanding a customer's history of dishonoured payments is an essential part of any credit assessment. Not only do you need to know whether the customer’s transaction history contains dishonours, you probably also want to understand:

  • what kind of payments they were for
  • how many there were
  • how recently they occurred
  • whether or not they’ve since been resolved.

Unfortunately, the way dishonours are recorded in customers’ transaction histories doesn’t make it easy.

Banks don't treat all dishonours the same way - they use different terminology, treat transactions differently (sometimes removing transactions entirely), and apply fees differently. The result is that there is no one-size-fits-all solution for identifying and quantifying the different things lenders want to know about customer dishonour behaviour.

shutterstock_767667193

Accurate analysis matters

Luckily for you, we’ve seen it all before. 🙌

We can configure a solution that will give you all the customer dishonour insights you need to manage your responsible lending and risk obligations - regardless of how the customer’s bank treats them. Our custom insights include 30+ decision points that can answer any questions you have about customer dishonours. Want to know how many loan repayments have dishonoured? Can do! Want a score that more heavily weights recent dishonours over older ones? We’ve got you covered! Want to know something really abstract about dishonours that’s critical to your credit assessment process? If you can describe it to us, we can build it!

Assessing dishonours in terms of the lending and compliance risks they represent is an unavoidable part of credit assessment. Talk to us today about how we can help you solve this one and get on with business.

Topics: Credit Sense, New Zealand, Australia, Canada, decision points, dishonour