Consumer credit card debt reached $650 billion in Q3 2015 — the highest level since Q4 2009.

As thought leaders in every industry make predictions for what 2016 will bring, I’m guessing there will be a few constants. New couples will marry. Some couples, sadly, will divorce. Young and old will move – some into first homes – others downsizing or making moves cross-country for work. And waves of individuals will clamor to the latest devices – a new iPhone7, perhaps. The Apple rumors are already flying. Yes, no big surprises, right? But, do you know what all of these very standard life events have in common? These transitions often result in shifts in consumer data, sometimes making people more difficult to track and contact. New last names, new addresses, new phone numbers. Suddenly, the consumer data that companies and lenders have on file are dated, and when it comes time to reach out to these individuals, it’s a challenge to connect. But that is just the beginning. The Federal Communications Commission (FCC) is increasing its efforts to register consumer complaints and taking aggressive actions to stop companies from making unsolicited phone calls. And the penalties are steep. Fines per individual infraction can be anywhere from $500 to $1,500. Companies have been delivered hefty penalties in the thousands, and in some cases millions, of dollars, over the past few years. All have questions and are seeking to understand how they must adjust their policies and call practices. Now those multiple attempts to call and find a consumer can cost you – big time. No more “shotgun” approaches to identifying and using phones. It’s simply too risky. The Telephone Consumer Protection Act (TCPA), enforced by the FCC, has been around since 1991, but regulations have been closely scrutinized over the past year since the FCC announced a new ruling last summer to clarify hot topics. In their July paper, they aim to communicate the definition of an “auto-dialer,” consent-to-call rules, how to address the reassignment of cell phone numbers, and the new requirement for “one call” without liability. In short, the Declaratory Ruling has opened the door to even greater liability under the TCPA, leaving companies who place outbound customer calls at-risk for compliance violations. Some are projecting the TCPA rules will continue to become even more expansive in 2016, so companies must really assess their call strategies and put best practices in place to increase right-party contact rates. Suggestions include: Identify landline and cell phones for TCPA compliance with dialer campaigns Focus on right- and wrong-party contact to improve customer service Score phones or apply cut-off scores based on the confidence of the number or match Scrub often for updated or verified information Establish a process to identify ported phones Determine when and how often you dial cell phones Provide consumers user-friendly mechanisms– such as texting “STOP” or “UNSUBSCRIBE” – to opt-out of receiving TCPA-covered communications. Review the policies and practices of third-party vendors to ensure they are not sending communications violating the TCPA With the huge advancements in mobile technology and the ever-changing digital landscape, it’s challenging to keep up, but regulators are cracking down on violations, and a slew of lawyers are ready to file on behalf of unhappy consumers dialed one-too-many times. Beyond a best-practice review, tools and systems are available to identify the right number for those moving and changing consumers. And I’m sure we can all agree, those life events will continue to happen in 2016. Marriages, divorces, moves, new devices. They’re coming. As a result, it’s necessary to track the resulting changes to consumer data. Only then will you have a shot at avoiding negative customer experiences and fines.

As 2016 approaches, many people have identified their New Year’s resolutions, but the majority fail to stick to these resolutions.  While 45% of people make resolutions, only 8% are successful in achieving their goals. The most common resolution types:* To increase the likelihood of keeping resolutions, experts recommend setting small, attainable goals and regularly tracking progress. *Total is higher than 100% because of multiple resolutions >> New Year's Resolution Statistics

According to PlayNetwork.com, for the first time in two decades Mariah Carey’s “All I Want For Christmas Is You” is no longer the most-played holiday song in retail stores. The list of top songs includes: Rank Artist Title 1 The Shins Wonderful Christmastime 2 Mariah Carey All I Want For Christmas Is You 3 Christina Aguilera Christmas Time 4 Waitresses Christmas Wrapping 5 Jack Johnson Someday At Christmas 6 Kelly Clarkson Underneath the Tree 7 Michael Buble A Holly Jolly Christmas 8 Bing Crosby White Chistmas 9 Train What Christmas Means To Me 10 Ella Fitzgerald Have Yourself A Merry Little Christmas >> Top 20 Songs Heard by Holiday Shoppers

Payments and the Internet of things has been colliding for a while now – and it surfaced again recently with Mastercard announcing that it is working with an array of partners including Capital One to launch payments in connected devices. The thinking here seems to be that payments is a function in the Marlow’s pyramid of needs for any new consumer device. I am conflicted on this point – not that I don’t believe the Internet of Things isn’t important, but that we may be overthinking in how payments is important to be shoved inside everything that has a radio baked in. And not everything will have a radio in the future, and the role of a smartphone as the center of the connected device commerce universe isn’t going away. It is important to keep perspective here – as this announcement is less about coat sleeves hiding NFC chips with tokenized credit cards – rather it’s the commerce enablement of devices that we may carry on our person so that they can be armed for payment. Though I may disagree on whether a coat sleeve or jewelry are essential end-points in commerce, a platform of capabilities to challenge, authenticate and verify, and ultimately trust and provision a tokenized representation of something, whether its a card or a fragment of a consumer's identity, to a device that itself represents a collection of radios and sensors is very exciting. It is exciting because as device counts and assortments grow, they each have their own residual identity as a combination of things and behaviors that are either deterministic or probabilistic. The biggest shift we will see is that the collective device identities can be a far better and complete representation of customer identity that the latter will be replaced by the former. Name-centric identities will give away to algorithmically arrived ones. As Dan Geer puts it, no longer will I need to announce that I am Cherian, but my collection of devices will indeed do so on my behalf, perhaps in consultation with each other. More over, none of these devices need to replicate my identity in order to be trusted and tethered, either. Coming back to Payments, today my Fitbit’s claim to make a successful payment is validated way before the transaction, when I authorized provisioning by authenticating through a bank app or wallet. What would be interesting is when the reverse becomes true – when these class of devices that I own can together or separately vouch for my identity. We may forget usernames and passwords, fingerprints may prove to be irrevocable and rigid, but we will always be surrounded by a fog of devices that each carry a cryptographically unique and verifiable signature. And it will be up to the smartphone, its ecosystem and the devices that operate in its periphery to individually negotiate and establish trust among each of them. So this is why I believe the MasterCard effort in tokenizing devices is important when you view it in conjunction with the recent launch of SwiftID from CapitalOne. Payments getting shoved in to everyday things like wearables, disguises the more important effort of becoming a beachhead in establishing trust between devices, by using tokenization as the method of delivery. As you may have gathered by now, I am less excited of pushing cards in to devices (least of all – cars!) and more about how a trusted framework to carve out a tamper proof and secure cache within an untrusted device, along with the process to securely provision a token or a signed hash representing something of value, can serve as the foundation for future device – and by extension – user identity. On a side note, here’s a bit about pushing cards in to cars, and mistaking them for connected cars. To me there are only two connected car classes today. One is Tesla where each car on the road is part of the whole, each learning separately and together as they examine, encounter and learn the world around them to maneuver safely. The other is a button in an app that I hit to have a car magically appear in front of me. Other than Tesla and Uber, there are no other commercial instances of a connected car that appeals (Google has no cars you can buy, yet).

Millennials, now the largest generation in the United States, are taking longer to establish credit than earlier generations of young people.

The numbers are staggering: more than $1.2 trillion in outstanding student loan debt, 40 million borrowers, and an average balance of $29,000. With Millennials exiting college and buried in debt, it’s no surprise they are postponing marriage, having babies, home purchases and other major life events. While the student loan issue has been looming for years, the magnitude is now taking center stage. All of the 2016 presidential contenders have an opinion, and many are starting to propose solutions – some going as far as to call for “debt-free college.” The issue has also caught the eye of the Consumer Financial Protection Bureau (CFPB). In its 2014 report, the CFPB stated one in four recent college graduates is either unemployed or underemployed. They also stated when faced with the inability to repay their debt, students lack payment options and are unclear as to how to resolve their debt. There is a bright spot. Experian reported new findings stating that among adults 18 to 34 years of age, the average credit score of those who had at least one open student loan account was 640, 20 points higher than others in their age group. So, if paid in a timely manner, student loans can help younger people establish a decent credit history before they go on to buy things like homes and cars. Still, education is key. Today, only 24 U.S. states require some form of financial literacy to be included in their high school course work, with only four states (Utah, Montana, Tennessee and Virginia) devoting a full semester to a personal finance course. Education is needed before students start diving into the student loan scene, and also after they graduate, to ensure they understand their repayment options and obligations. The CFPB is calling on all parties (universities, colleges, private lenders, advocates, policy makers and even family members) to get involved. Providing financial education, financial literacy, repayment options, deferral methods and income calculators are all needed to tackle this growing problem. The Great Recession and slow recovery brought home the importance of a college degree in today’s economy for many Americans. Bachelor’s degree recipients fared much better than their counterparts who only finished high school. The question becomes how to fund it, and make sure students who rely on loans understand the finances attached to this milestone investment. Learn more about Experian’s student debt trends and credit education in The Increasing Need for Consumer Credit Education: A Review of Student Debt.

Leveraging customer intelligence in the age of mass data compromise Hardly a week goes by without the media reporting a large-scale hack of sensitive personal or account information. Increasingly, the public seems resigned to believe that such compromises are the new normal, producing a kind of breach fatigue that may be lowering the expectations consumers have for identity and online security. Still, businesses must be vigilant and continue to apply comprehensive, data-driven intelligence that helps to thwart both breaches and the malicious use of breached information and to protect all parties’ interests. We recently released a new white paper, Data confidence realized: Leveraging customer intelligence in the age of mass data compromise, to help businesses understand how data and technology are needed to strengthen fraud risk strategies through comprehensive customer intelligence. At its core, reliable customer intelligence is based on high-quality contextual identity and device attributes and other authentication performance data. Customer intelligence provides a holistic, bound-together view of devices and identities that equips companies and agencies with the tools to balance cost and risk without increasing transactional friction and affecting the customer experience. In the age of mass data compromise, however, obtaining dependable information continues to challenge many companies, usually because consumer-provided identities aren’t always unique enough to produce fully confident decisioning. For more information, and to get a better sense of what steps you need to take now, download the full white paper.

Environmentally friendly, lower fuel costs and tax incentives. These are all words that describe alternative-powered vehicles, and serve as reasons why many car shoppers flocked to their local dealerships over the past several years with the intent of “going green” with their next vehicle. However, that trend seems to be fading into the past. As gas prices continue to trend downward, we have seen more and more consumers steer away from hybrids. In fact, according to Experian’s recent Automotive Market Trends and Registrations analysis, when it came to fuel type, hybrids only made up 2.5 percent of the vehicles registered in the third quarter of 2015. This was a 19.2 percent drop from a year ago. Meanwhile, gas-powered vehicles dominated the market at nearly 94 percent. Furthermore, the analysis found that the hybrid car was the vehicle segment that suffered the second largest year-over-year decrease in registrations and its second consecutive quarterly decline, reducing by 19 percent. Conversely, the upper premium sports car (including vehicle models, such as the Porsche 911, Jaguar XJ and BMW 6-Series) saw the highest percentage increase, growing by 45 percent over the same time period. From an overall market perspective, the analysis found that through the third quarter of 2015, new vehicle registrations increased by 5.5 percent from the previous year – a clear sign that the market continues to trend in a positive direction. As previous Experian analyses have indicated, as long as consumers continue to stay on top of their monthly payments, the boom in new vehicle sales will be a positive sign for the industry. The analysis also examined the demographic characteristics of the new vehicle buyer, and found that nearly 50 percent of the new vehicle purchasing power in the U.S. falls to consumers between the ages of 40-69. What’s more, individuals with incomes from $50,000-$100,000 made up 35.5 percent of all new vehicle buyers. Like many things in life, the automotive market is ever changing. At one moment, a segment of vehicles could be selling like hot cakes, and the next moment suffer a steep decline in sales. Gaining insight into these types of trends enables manufacturers and retailers to better understand the fluctuations in the market, and more easily position their businesses for success. And the better positioned they are for success, the more “green” these companies will see.

Experian data shows consumers are more confident managing their credit since the recession. The Q3 2015 Experian Market Intelligence Brief was released today featuring data that highlights consumer credit card debt has now reached its highest level since Q4 2009. Credit card debt levels reached $650 billion in Q3 2015, the highest it has been since Q4 2009 when it was $667 billion. Credit card delinquency rates on outstanding balances 60 or more days past due have decreased 71 percent during the same time period. Combining those indicators with the national unemployment rate dropping 50 percent during the same span illustrates a positive economic outlook on credit card trends among lenders and consumers. “Overall credit card limits have increased 102 percent since Q4 2009 with $82 billion originated in Q3 2015,” said Kelly Kent, vice president of Experian Decision Analytics. “The increase in limits from lenders and the steady climb in credit card debt combined with exceptional delinquency rates signals greater confidence among consumers as they are showing more assurance in managing their credit since the recession. We expect to see credit card debt increase in Q4 based on historical seasonal trends driven by the holiday shopping season especially with the early positive holiday sales as a sign.” The Q3 2015 Experian Market Intelligence Brief report is now available.

Last December, American Banker named online marketplace lending its innovation of the year as a result of the “industry’s rapid growth and evolution.” Meanwhile, in 2015, millennials scored headlines in nearly every publication imaginable – industries, politicians and academics all trying to understand and articulate how the now largest-living generation will influence how we work, live and lead. So perhaps it’s no surprise the two hot topics have collided this year. Gen Y is tech-dependent and Internet-enabled. They have increasingly grown to expect the tools and services they use to be available online, including anything and everything in the financial services space. Marketplace lenders are ever-so eager to sweep in and serve. Online and mobile solutions are certainly one thing, but Experian’s latest research reveals this generation is also very receptive to “non-bank” lenders for the ease, speed and accessibility they provide. 47 percent of millennials said they are likely to use alternative finance sources in the near future 57 percent reported they are willing to use alternative companies and services that innovate to meet their needs 13 percent said they’ve already taken out a loan from an alternate or non-bank lender As they come of age, hitting those big milestones – college graduations, marriage, starting families, making home purchases – Gen Y is wading through its financial options. Research and logic suggest millennials will without a doubt have a greater openness toward nontraditional banking, representing a huge market for online marketplace lenders. For the millennial entrepreneurs especially, marketplace lending is proving to be a good fit. “They are on the earlier curve of their small business ownership and entrepreneurial paths,” David Solis, sales performance manager at Bank of America, told CNN Money. “It makes sense they’re going to be pursuing alternative forms of lending.” Affluent millennials are another segment open to alternative financial services. A 2015 LinkedIn study on this specific target stated affluent millennials are particularly likely to envision a cashless, sharing-based economy in the future, where banks no longer serve as their primary financial institutions. Nearly seven out of 10 affluent millennials are likely to consider such offerings outside of the traditional financial services space, compared to just 47 percent of affluent Gen X’ers. The millennial generation may not fully understand all products traditional banks offer, since they rarely set foot in “brick-and-mortar” establishments, but they are a prime market for online investing and lending services. They’re more experimental, more digital, less loyal. In short, they are looking for financial services that are as tech-savvy as they are; those who don’t keep up may get left behind, and online marketplace lenders are certainly positioning themselves to win over this generation. To be most successful in capturing this highly sought-after generation, online marketplace lenders will need to continue to innovate both in terms of differentiating their product offerings and getting more sophisticated in their targeted marketing approach. As the online marketplace continues to expand with more players, heating up with increased competition, segmentation strategies will be key in finding the right borrowers and matching them with the right offer. As we head into 2016, there is no doubt many will continue to monitor the financial services trends emerging. Chances are online marketplace lenders and millennials will likely be attached to many of the headlines. For more information, visit www.experian.com/marketplacelending.

The financial services industry continues to face mounting pressures to meet the highest standards of data reporting and accuracy. New regulations and mandates are introduced regularly, impacting the way companies do business. And a more credit-educated consumer base is seeking insights into their own credit data, providing a separate second of eyes that demand accuracy. Not only has the Fair Credit Reporting Act (FCRA) set requirements on dispute investigation and response, but the Consumer Financial Protection Bureau (CFPB) is also paying close attention. Recent announcements indicate the CFPB wants more information about the credit eco-system to gain more data about consumer disputes. According to the CFPB, it’s a joint problem – “the NCRAA’s, data furnishers, public record providers, and consumers all play roles which affect the accuracy of the information with credit reports.” And it’s not just the big banks that are being targeted with fines. The CFPB has made it clear it will also direct attention to certain nonbanks and financial products. In today’s data-driven environment, there are roughly 12,000-plus data furnishers, resulting in more than one billion pieces of information being updated on a monthly basis. Over 220 million consumers have some form of credit information attached to them, and transactional data is flowing all the time. Fail to update and a furnisher will quickly see flaws in their reporting. In fact, a recent study revealed an estimated 2.1% of contact info goes bad if unattended for more than one month. Clearly, achieving data quality is an ongoing investment for any organization, but companies often lack a clean plan. Some data furnishers fail to report, or elect to report to just one bureau, even though providing better data will result in a more complete and accurate credit profile. So how do you tackle the challenge of data quality? Organizations should consider implementing these six steps: Review data governance. Correct errors in data submissions. Complete an audit of data submissions. Evaluate disputes and resolutions. Compare data to peers and the industry. Review existing policies and processes. Follow these steps and your organization will earn a reputation among both regulators and consumers for clean, credible data. Plus, the investment in better data will reduce the need to resolve future disputes and fines. To learn more about meeting your FCRA responsibilities and best practices around data quality, check out our on-demand webinar or data integrity services site.

According to the latest Experian State of the Automotive Finance Market report, leases accounted for nearly 27% of all new vehicle transactions in Q3 2015, up from 24.7% the previous year and the highest percentage on record.

It’s official. Millennials have surpassed Baby Boomers in population size, according to the US Census. And while they are quick to adopt the “selfie” and all things social, they have been slow to embrace the world of credit. Sure, there’s been increased regulation over the past decade, and coming into adulthood in the midst of the Great Recession hasn’t helped. But don’t count Millennials out of the credit game just yet. A deeper, more segmented view of this digital-dependent generation shows a very diverse population with plenty of opportunity for lenders. Plus, their sheer size in numbers and $200 billion in annual buying power demand financial institutions evolve to accommodate this massive market. As Gen Y comes of age, there is growing evidence they are open to building and growing their personal credit history. But if financial institutions wish to capture the attention and business of this demographic, they must adapt, leveraging deeper segmentation insights with more effective prospecting strategies to reach them. Experian's data reveals key trends in terms of how this generation is utilizing credit, tips and tools to find the most credit-ready individuals, and strategies to grow the thin-file Millennials as they come of age. “Given the significance millennials play in financial services and the credit marketplace, it is crucial to understand this influential consumer segment and how they use credit as a tool,” said Michele Raneri, vice president of analytics and business development. “While this generation may not look like they are on the right track financially, it’s important to keep in mind that credit scores are built on credit experiences, and while this generation has been slower to use credit, they have plenty of opportunities to build a positive credit history.” To learn more about Millennials and credit, visit Experian.com/millennials.

Customer Experience during the holiday shopping season During the holidays, consumers transact at a much greater rate than any other time of the year. Many risk-management departments respond by loosening the reins on their decision engines to improve the customer experience — and to ensure that this spike does not trigger a response that would impede a holiday shopper’s desire to grab one more stocking stuffer or a gift for a last-minute guest. As a result, it also is the busy season for fraudsters, and they use this act of goodwill toward your customers to improve their criminal enterprise. Ultimately, you are tasked with providing a great customer experience to your real customers while eliminating any synthetic ones. Recent data breaches resulted in large quantities of personally identifiable information that thieves can use to create synthetic identities being published on the Dark Web. As this data is related to real consumers, it can be difficult for your identity-authentication solution to determine that these identities have been compromised or fabricated, enabling fraudsters to open accounts with your organization. Experian’s Identity Element Network™ can help you determine when synthetic identities are at work within your business. It evaluates nearly 300 data-element combinations to determine if certain elements appear in cyberspace frequently or are being used in combination with data not consistent with your customer’s identity. This proven resource helps you manage fraud across the Customer Life Cycle and hinder the damage that identity thieves cause. Identity Element Network examines a vast attribute repository that grows by more than 2 million transactions each day, revealing up-to-date fraud threats associated with inconsistent or high-risk use of personal identity elements. Our goal is to provide the comfort of knowing that you are transacting with your real customers. Don’t get left in the cold this holiday season — fraudsters are looking for opportunities to take advantage of you and your customers. Contact your Experian account executive to learn how Identity Element Network can help make sure you are not letting fraudsters exploit the customer experience intended for your real customers. Learn more about the delicate balance between customer and criminal by viewing our fraud e-book.