Financial Empowerment for the Unbanked & Underbanked Consumer: “Crossing the Red Line” (Dec. 2006)

  Study Findings & Recommendations

• The industry must provide a mechanism to transition and graduate consumers from sub-prime to prime credit scores in order for them to be able to accumulate wealth.
• The industry and legislative bodies must work together to develop a new business model and a set of regulatory policies to provide access to mainstream products and require financial service organizations to report payment histories to the major credit bureaus.
• Organizations that offer credit products to credit challenged consumers must be allowed to factor in appropriate risks when extending these services while fostering a competitive regulatory environment.