The Credit Reporting and Lending Industries have long needed a breakthrough in alternative scoring and lending. Now more than ever, especially due to the COVID-19 economic hardships brought on by COVID-19, creditworthiness is perilous for citizens of the United States and globally. In March of 2020, then-Senator, Vice President Kamala Harris, publicly Tweeted, “We must suspend wage garnishment, car repossessions, credit card interest and penalties, and any negative credit reporting for the duration of the pandemic (including for at least 120 days after this is over).”
Several years ago, the Founder & CEO of Plensy™ Sam Errama, who provides Lead Generation services for Automotive Dealerships through his company Pownder®, recognized crippling profit margins and punished consumers. These dealerships’ sales departments expressed their inability to provide loan options to customers, and Mr. Errama dived into creating a new points-based lending system and platform called, Plensy™.
Sam Errama further elaborates, “After witnessing firsthand numerous potential buyer’s credit reports with low or no scores at all in the automotive market, I knew the painful car buying and lending process needed disruption.”
The credit scoring system used by Americans today was implemented in the ‘80s using an antiquated mathematical algorithm equation. Plensy™’s new lending-points system leverages modern data analytics and algorithmic models to accurately assess a borrower without Increasing credit risk or any basis of discriminatory racial effects and is set to begin beta testing with the automotive market in 2022. By expanding the marketplace, diversifying risk, and creating social impact, Plensy™ is the most intricate and needed part of the equation to disrupt the monopolized for-profit companies —Experian, Transunion, and Equifax.
Two hundred twenty million US Citizens’ social security, lending collections, and payment data are absorbed by these companies without consumers’ permission or approval, punishing them on race, hospital bills, inquiries, and everything in between. In addition to charging a subscription fee to view credit scores, the big-3 even lower consumer scores when their credit is pulled for lending or applications for homes.
Demos, a think-tank organization, published a paper written by Associate Director Amy Traub in April of 2019, titled “Establish a Public Credit Registry”; now under Biden’s plan, the monopoly is under a financial microscope. Plensy™ is leading the race and well ahead of this proposed campaign.
“Plensy™ has solved it. It’s time we evolved with it. So, humanity can thrive, not just survive, by bringing blockchain technology and asset-backed tokenized loans to the credit and lending industry. We are ready to engage with like-minded VC’s and Angel Fund Groups to pursue this endeavor further,” Brandi Kolosky, Chief Growth Officer of Plensy™, further expresses.
While past performance may be a sufficient indicator for a borrower whose financial circumstances have not changed, that is not the case for many borrowers. In addition to traditional jobs and professions, many borrowers supplement their income through non-traditional means such as e-commerce, multi-level marketing, app driving, and food delivery services. Financial conditions change rapidly, and failure to acknowledge those changes puts a borrower at a significant disadvantage.
Under the traditional model, a borrower’s credit score can be updated monthly or at least every 45 days. This lag in real-time data is woefully inefficient for today’s fast-paced economic environment, where transactions can be completed within a matter of nanoseconds using blockchain technology.
The current credit scoring system does not consider other important factors, such as government regulations, market conditions, the borrower’s expenses, employment history, the loan terms, or the total down payment the borrower is willing to pay on the transaction.
The process to obtain lending-points is simple and without cost, through the Plensy™ App. Connect your bank accounts, add proof of rental or mortgage payment history, upload copies of your legal identifications such as driver’s license or passport, as well as additional variables that can raise your lending points.
Plensy™ issues these lending points based on a lending point application programming interface (API) that inputs the data into the Plensy™ algorithm. The API is available to sellers and calculates the borrower’s tier-based upon relevant data inputs. A borrower may change their tier anytime, without penalty or fees, by changing input variables, such as the amount of down payment, the purchase of warranties or additional insurance, or liens on other assets.
Once the loan terms are agreed upon, and the parties enter into a contract to repay the loan, the loan contract is uploaded on the Plensy’s digital platform. A smart contract created by blockchain technology allows full transparency of terms to all interested parties. The asset, title, and tokens associated with the loan are all linked by a smart contract. Tokens are released to the network for trading based on the value of the asset. Plensy™’s Blockchain technology allows for transparency of a digital asset’s current value by maintaining a decentralized public ledger available to the public.
More About: Plensy™ is a patent-pending points-based lending platform on the blockchain. We seek to disrupt the antiquated automotive lending system by offering asset-backed tokenized loans.