TRW to Offer New Financial Service Package

A unit of TRW Inc. unveiled a package of financial services Tuesday that it said will make it easier for consumers to apply for loans and obtain information about their credit standings.

However, at least one competitor said it is not clear whether many consumers would be willing to pay the $30 annual fee for the services, noting that some of them are already available separately for less money.

Orange-based TRW Direct Consumer Information Services, whose parent operates the nation’s second-largest credit reporting service, said its new credentials service will be the first to allow a subscriber to fill out a standardized loan application that can be transmitted electronically to certain lenders to which the subscriber has applied for a loan. Thus, subscribers would not need to fill out separate loan applications each time they apply.

The service also will allow subscribers to see their credit files as often as they wish at no extra charge. Such files, which contain information about a consumer’s credit history, are typically provided by TRW and other credit reporting firms to banks, stores and finance companies. In addition, the service will notify consumers whenever their credit files are sent to anyone and will notify issuers of credit cards when a subscriber’s cards are lost or stolen.

TRW, which said it is the first firm to offer such a package of services, will initially offer it only in California, with national expansion planned for midyear.

“Consumers want greater control and greater knowledge” over their financial affairs, said Melvin Wellerstein, the service’s general manager.

However, Edward Echt, Fullerton-based Western regional vice president for Trans Union Credit Information Corp., the nation’s largest credit-reporting service, said his firm has no plans to copy TRW’s package.

He added that company executives “don’t think it would hurt our own business” and noted that at least two of the four services are already available to consumers. For example, consumers are entitled by law to see their credit file, free of charge, within 30 days of being turned down for credit. Otherwise, the charge is $8 or less.

Also available are credit card registration services that will notify card issuers when a consumer’s card is lost or stolen. Fees range from no charge to $25 annually.

The standardized loan application would be accepted only at credit grantors that have agreed to participate. So far, that list includes 27 firms, including Bank of America, General Motors Acceptance Corp. and the Broadway stores.