Home> Red Flag

Red Flag

It’s not uncommon for 20 percent of new consumer credit applications to contain a different address from the corresponding consumer credit file. By reconciling address discrepancies, financial institutions can increase their applicant pool, generating a higher percentage of offers presented and then accepted. Lenders would be best served in choosing a comprehensive approach to red flag regulation that provides a favorable return on investment.

—Larry Kahn, Subject Matter Expert, Credit & Compliance, Zoot Enterprises

Red Flag—So What?

Satisfying Red Flag requirements means maintaining reasonable policies and procedures for detecting, preventing, and mitigating identity theft, but what does all of that mean? Zoot’s subject matter experts have teamed up with third-party resources to provide you with in-depth information answering that question as it evolves. The first step is making sure your institution knows it is mandatory for consumer credit grantors to have a Red Flag compliance program—vetted by the financial institution’s (FI’s) board—in place.

What Do I Need?

A key component is intelligent, automated workflow that is capable of identifying all current Red Flag indicators. With a robust, flexible solution in place, FIs can address more than one aspect of Red Flag criteria at a time while maintaining rapid responses and consistent logic across all lines of business (LOBs).

No Need to Rip and Replace

In addition, Zoot’s Red Flag Solution easily interfaces with your existing systems. This allows you the simplicity of a single platform and the depth to support each channel and LOB’s individual opportunities. Shared logic, used for both instant prescreen and consumer-initiated inquiries, can be easily modified by business users. Across the board, automation allows you to manage risk better while lowering the cost per booked account.

Get the Most for Your Money

Zoot’s Red Flag Solution is truly comprehensive.  It is based on our extensive experience in the credit decisioning and loan origination spaces and developed with expert input and review from third-party compliance specialists. We know how important your customer’s experience and protection is to you, thus our solution delivers best-practice capabilities to meet all issues of Red Flag and broader fraud concerns.

Red Flag ROI

Ready for More

Red Flag legislation is changing the way lenders do business. The good news is the new practices will greatly reduce identify theft and increase consumer trust. The bad news is the future is uncertain. Zoot’s tools and services approach to the solution is versatile and offers agile deployment to meet the requirements now and as they evolve.

Perhaps your institution has already automated and integrated Red Flag compliance but could use additional insight into how to increase your margins. The industry experts at Zoot can help.

Learn more:
Webinar, "Red Flag Regulation: What You Should Know"
White Paper "Three Overlooked Opportunities of Red Flag Legislation."