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

Rhea-AI Summary

TransUnion (NYSE: TRU) launched an industry-first Credit Washing Solution on Nov 13, 2025 to help lenders detect suppression of legitimate, accurate, non-obsolete credit data.

Key data: ~5% of U.S. consumers had charged-off accounts suppressed in 2025, with an estimated $10 billion in debt erased. TransUnion reports a ~700% rise in consumer-initiated charge-off suppressions over two years and 200% lender-initiated rise over four years.

The solution adds a Credit Washing Default Score, tradeline and inquiry washing attributes, and is available as add-ons to TransUnion credit and model reports for prescreen, prequalification, and portfolio review.

Positive

• Addresses an estimated $10 billion in suppressed debt
• Identifies consumers with hidden risk using a Credit Washing Default Score
• Detects washing across 6 tradeline categories and multiple time periods
• Available immediately as add-ons for prescreen, prequalification, portfolio review

Negative

• Approximately 5% of U.S. consumers affected by charge-off suppressions in 2025
• Consumer-initiated suppressions rose ~700% over two years
• Lender-initiated suppressions rose 200% over four years
• Consumers with atypical suppressions are 3.5x more likely to charge off new accounts within 12 months

Insights

Credit risk analytics expert

TransUnion launched a credit-washing detection product aimed at surfacing suppressed legitimate derogatory data to reduce hidden lender risk.

TransUnion introduces a Credit Washing Solution launched on November 13, 2025 that flags atypical suppressions of accurate, non‑obsolete credit data. The release cites that roughly 5% of U.S. consumers had charged‑off accounts suppressed in 2025 and estimates $10 billion of debt removed from reports by year‑end. The product provides a Credit Washing Default Score, tradeline washing attributes across six product lines, and inquiry washing attributes across four lines and multiple time windows.

The disclosed data quantify the problem: a nearly 700% increase in consumer‑initiated charge‑off suppressions over two years, a 200% increase in lender‑initiated suppressions over four years, and consumers with atypical suppressions are 3.5 times more likely to charge off a new account within 12 months. These explicit metrics support the product’s use cases: routing accounts for manual review, adjusting credit limits, and screening during prescreen, prequalification, and portfolio review processes. The company states additional delivery channels and integrations will be announced in coming months.

The announcement presents clear, actionable signals for credit operations and model governance teams without making predictive claims beyond the stated 3.5x statistic and the model’s 12‑month risk window. Monitor the stated metrics and adoption milestones over the next 6–12 months, specifically the product’s integration into prescreen and portfolio review flows and any published performance metrics tied to early charge‑off reductions.

New solution to help financial institutions detect and address the suppression of legitimate, accurate, and non-obsolete credit data

CHICAGO, Nov. 13, 2025 (GLOBE NEWSWIRE) -- TransUnion (NYSE: TRU) launched today a new and innovative solution designed to combat credit washing—the practice of removing legitimate, accurate and non-obsolete credit data from credit profiles. TransUnion’s industry-first Credit Washing Solution helps financial institutions detect and combat this growing threat.

In 2025, roughly 5% of U.S. consumers have had charged-off accounts suppressed for atypical reasons, with an estimated $10 billion in debt erased from credit reports by the end of the year. These atypical suppressions—driven by consumer, lender, credit repair and debt settlement practices—cause artificial increases in credit scores that can dramatically alter how a consumer’s risk is assessed.

A TransUnion analysis shows 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. As these incidents continue to increase, the Credit Washing Solution offers a timely and powerful defense using advanced analytics and machine learning.

“Credit washing continues to be a significant detriment to the credit ecosystem with lenders experiencing great financial loss from consumers whose credit and fraud risk is not accurately represented due to missing credit history,” said Steve Yin, global head of fraud at TransUnion. “Our credit washing solution helps identify those consumers with hidden risk before they become a financial burden for lenders.”

TransUnion’s research shows that following the suppression of derogatory data, an average consumer’s credit risk will be inflated by at least one risk tier, in extreme cases shifting from subprime to super prime overnight. Furthermore, consumers with atypical charge-off suppressions are 3.5 times more likely to charge off a new account within a year of account opening compared to consumers with no credit washing activity.

“It’s important to remember that credit washing is not the same as the removal or correction of inaccurate or illegitimate credit data, an important consumer protection to address genuine issues with a credit report. On the other hand, when accurate data is suppressed for the purpose of presenting as a lower-risk borrower, that is a form of credit washing,” added Yin.

TransUnion Credit Washing Solution Surfaces Hidden Risks

The TransUnion Credit Washing Solution enables lenders to route potentially high-risk consumers to manual review, optimize credit limits, and reduce early charge-offs. The solution offers three powerful indicators:

• Credit Washing Default Score: A machine-learning model that identifies consumers with a history of charge-off suppression who may be at elevated risk of defaulting on new accounts within 12 months.
  
• Tradeline Washing Attributes: Algorithms that calculate changes in reported charge-offs across six lines of business (auto loan, bank card, collections, mortgage, personal loan, and retail card) and a range of time periods.
  
• Inquiry Washing Attributes: Algorithms that calculate changes in hard inquiries across four lines of business and six time periods.
  
  

The solution is initially available as add-ons to TransUnion’s credit and model reports and can be leveraged during prescreen, prequalification, and portfolio review processes. Additional delivery channels and third-party platform integrations are in development and will be announced in the coming months.

“Our credit washing solution is a testament to TransUnion’s focus on developing innovative solutions that help our customers continue to grow their businesses while protecting themselves from bad actors,” said Jason Laky, executive vice president and head of financial services at TransUnion. “Ultimately, this new first-in-class solution empowers lenders to proactively identify and manage credit washing risks, helping them make more informed decisions.”

To learn more about how TransUnion’s Credit Washing Solution can help lenders detect credit washing activity, better manage hidden risk and decrease losses, click here.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

http://www.transunion.com/business

Contact	Dave Blumberg
TransUnion
E-mail	david.blumberg@transunion.com
Telephone	312-972-6646

FAQ

What did TransUnion (TRU) announce on November 13, 2025?

TransUnion launched a Credit Washing Solution to detect suppression of legitimate credit data and surface hidden borrower risk.

How widespread is credit washing according to TransUnion's Nov 2025 report?

TransUnion estimates ~5% of U.S. consumers had charged-off accounts suppressed in 2025, representing about $10 billion in erased debt.

What metrics does TransUnion's Credit Washing Solution provide for lenders?

It provides a Credit Washing Default Score, tradeline washing attributes across six lines, and inquiry washing attributes across four lines.

How can lenders use TransUnion's new solution in underwriting and portfolio management?

Lenders can route flagged consumers to manual review, optimize credit limits, and reduce early charge-offs during prescreen, prequalification, and portfolio review.

Does TransUnion quantify the increased risk from credit washing?

Yes; TransUnion reports consumers with atypical charge-off suppressions are 3.5 times more likely to charge off a new account within 12 months.

When will additional delivery channels or integrations be available for TRU's solution?

TransUnion said additional delivery channels and third-party integrations are in development and will be announced in the coming months.