Research and Applications

PERC is a non-profit organization dedicated to finding Information Solutions for Development Challenges worldwide. Going beyond the standard think tank model of solely carrying out research and producing reports, our staff develops real-world applications and works with policy makers at all levels to bring about the change we seek.

Find out more: About PERC

Serving the Missing Middle

PERC's mission is to serve the Missing Middle, the almost 4 billion people above the global poverty line who do not have access to affordable mainstream credit, by utilizing a new type of economic development: information-led development.

Find out more: Information-Led Development, Who are the missing middle?

Overcoming the Catch-22

Up to 70 million Americans are excluded from the financial mainstream because of the Credit Catch-22: you need to have a history of debt to get credit. PERC's Alternative Data Initiative has already helped many Americans overcome this Catch-22 and access affordable mainstream credit.

Find out more: Alternative Data Initiative

Smart Disaster Recovery

PERC has developed metrics for the Louisiana Recovery Agency and the World Bank to track small business recovery from natural disasters.

Find out more: Gulf Coast Economic Renewal

Donate to PERC

You can help support PERC's mission of global asset building by donating via Paypal. PERC is a 501(c)3 non-profit organization incorporated in the state of North Carolina. All donations are tax deductible.

Alternative Data Initiative (ADI)

Printer-friendly version

The Problem
PERC's Solution
Timeline

» An estimated 35 to 54 million Americans have insufficient credit information to qualify for affordable mainstream credit. (Sources: Experian and FICO)

» The number of thin-file and no-file Americans may exceed 70 million, if immigrants are included. (Source: NCRA)

» Most outside the credit mainstream may only access credit from high-priced lenders including check-cashing services, payday lenders, and unscrupulous predatory lenders.

» It is estimated that each year Americans spend $4.2 billion on fees and charges for payday lenders, check cashing services, and predatory lenders. (Source: Center for Responsible Lending)

» An individual borrower could save $40,000 to $360,000 over the course of a career by opening a simple checking or savings account. (Source: The Brookings Institution)

» Nearly all energy utility and telecoms firms report negative customer payment data (delinquencies and defaults) to credit bureaus, either directly or indirectly through collections agencies.

» Under the current system, energy utility and telecoms customers are penalized for late payments, but are not rewarded for timely payments.

» PERC promotes the full reporting of customer payment data—negative and positive data (timely payments and the amount paid)—by energy utility and telecoms firms to consumer reporting agencies (CRAs) as a way of helping millions of Americans quickly build a positive credit history and enable them to access affordable credit.

» In 2004, PERC launched its Alternative Data Initiative (ADI) with the goals of (1) Exhorting energy utility and telecoms companies to fully report to CRAs; and (2) Moving the market by encouraging demand (use by lenders in underwriting) and supply (collection of data by CRAs).

ADI Phase 1: Framing the Issue (January 2004—March 2005)

» Testified before House Financial Services Committee.
» Released “Giving Underserved Consumers Better Access to the Credit System,” (National Press Club).

ADI Phase 2: Making the Market (April 2005—January 2007)

» Released “Give Credit Where Credit is Due” with Brookings UMI, measuring economic and social impacts of full payment reporting to credit bureaus.
» Built broad coalition of supporters including lenders, credit bureaus, CRAs, and consumer advocates.
» Extensive outreach with public and private sectors.

ADI Phase 3: Building a Policy Consensus (February 2007—December 2008)

» Survey of energy utility and telecoms firms building business case to report.
» Study measuring impacts of having rental payment data and other public record data reported to CRAs.
» Federal and state outreach.

ADI Phase 4: The Last Mile (January 2009 - December 2010)

» Extensive outreach with state lawmakers to remove any statutory/regulatory barriers to full payment reporting.
» Outreach to top energy utility and telecoms industry executives to exhort to fully report payment data.

Download the Alternative Data Initiative brochure here.

Asia-Pacific Credit Coalition

APCC is a PERC-managed coalition committed to promoting a regional standard for full-file, comprehensive consumer credit reporting to private credit bureaus within the 21 Asia-Pacific Economic Cooperation (APEC) member economies. Please visit PERC's coalition for credit standards in the APEC region, the Asia-Pacific Credit Coalition