TransUnion launched 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 suppression--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.
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: Al 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.
