Damages
A court’s estimated compensation, in money terms, for a wrong suffered by Plaintiff in contract, or as a result of other damages.

Data
The raw ingredients, (usually facts or figures), that when processed, produce information for management information reports.

Data Access Tools
An end-user orientated tool that allows users to build SQL queries by pointing and clicking on a list of tables and fields in the data warehouse.

Data Acquisition
A process of bringing data into a system, including data quality management processes for validation, transformation, joining, or eliminating duplicate information prior to its entry into a database or data warehouse.

Data Aggregation
A type of data derivation where a data value is derived from the aggregation of two or more contributing data characteristics in different data occurrences within the same data subject.

Data Archaeology
Tracing data to its original source and understanding the validation processes that have been used to collect, correct, and store the information.

Data Capture
The process of collecting data from application forms or other paper based sources, and transferring it to computer media. This may involve keying or scanning. Also known as Draft Capture.

Data Classification Schemes
Abstract levels of data classification above the working level that provide a broader perspective of data. Also see Categorical Levels of Data Classification.

Data Cleaning
The process of ensuring that all values in a data set are consistent and correctly recorded. Also known as Data Cleansing.

Data Cleansing
The process of ensuring that all values in a data set are consistent and correctly recorded. Also known as Data Cleaning.

Data Clusters
Clustering is an unsupervised version of Classification. See Categorical Levels of Data Classification.

Data Element
The most elementary unit of data that can be identified and described in a dictionary or repository and cannot be subdivided.

Data Encryption Key
A key used for the encryption of message text and for the computation of message integrity checks. Also see Signatures.

Data Encryption Standard
A popular standardised encryption scheme.

Data Enhancement
A process whereby a customer file has data appended to it, (such as age, income, home value), from an external data file. Also see Overlayed Data and Enhancement.

Data Entry
The process of entering names and addresses and other data into magnetic media such as tapes. Also see Keypunching.

Data Extract
Data that normally resides on an operational system and is removed from that system for loading into a Data Warehouse.

Data Instance
The point in time or the period of time for which the data value accurately represents the real world. Within the common data architecture, data instance is not the same as a data occurrence.

Data Integrity
Uses protocols and calculations to ensure that a message is not changed (intentionally or accidentally) during transmission.

Data Management Systems
A set of software modules that are used to manipulate and manage, create, read, update, and delete, data elements within one or more databases.

Data Mapping
Not all databases capture exactly the same information in the same way, and so merging databases into a single consistent structure requires transformations, calculations, and other ‘mappings’ from one context to the other. For example, one database may capture a client’s age in years, while another captures the date of birth, and a third captures the age in terms of defined ranges.

Data Mart
A copy of transaction data specifically structured for query and analysis It is designed to address a specific business problem rather than the information requirements of an entire organisation. A data mart is a logical subset of the complete data warehouse.

Data Mining
The extraction of predictive information from large databases. Also known as Predictive Modelling.

Data Normalisation
A process to develop the conceptual schema from the external schema.

Data Recovery
To recover data that has been corrupted or erroneously erased.

Data Replacement
Substituting data into fields in place of the data that originally appeared there. It is used for imputing missing values, replacing anomalous data, and limiting the influence of outliers.

Data Specification
A description of all of the data that is considered during the scorecard development.

Data Staging Area
A storage area and set of processes that clean, transform, combine, de-duplicate, household, archive, and prepare source data for use in the data warehouse.

Data Structure Assumptions
The specific data requirements for statistical modeling techniques. For example, some modelling techniques require the data to be categorical, whilst others have distributional assumptions.

Data Transformation
Data transformation is the process and development of utilities to allow the loading of data into a data warehouse.

Data Value
The individual fact and figures contained in data characteristics, data characteristic variations, data attributes, and data items.

Data Visualisation
The visual interpretation of complex relationships in multidimensional data.

Data Warehouse
A copy of transaction data specifically structured for query and analysis, and designed for cross-functional data integration. The data warehouse is the combination of all the constituent data marts. Also see Data Extract.

Data Warehouse Management Tools
Software that extracts and transforms data from operational systems and loads it into the Data Warehouse.

Database
Information that has been gathered that is closely related. Most databases consist of (a) fields or columns containing units of information and (b) records or rows containing sets of fields. See Flat File.

Database Administrator
This is a person who controls a database and typically manages the budget for the database. Also known as DBA.

Database Call Handling
A CTI application, whereby the ACD works in synchronisation with the database computer to process calls, based on information in the database. For example, a caller inputs digits into a voice processing system; the database retrieves information on that customer and then issues instructions to the ACD on how to handle the call.

Database Management System (DBMS)
A software application that enables you to create and manipulate data in the form of databases.

Database Marketing
A term used to describe the art/science of selecting a database of a potential set of customers for a given product or need. For example, defining a target mailing list for people likely to acquire a new mutual fund product. This results in increased customer loyalty and repeat sales.

Date Opened
The date when a credit agreement was originally initiated with a credit grantor.

Date Reported
The date when a listing of the credit status of an account is placed on the credit profile.

Day of Week Routing
A network service that routes calls to alternate locations, based on the day of the week. There are also options for day of year and time of day routing.

Days
The days since public record action was filed.

DBA
Acronym for Database Administrator. This is a person who controls a database and typically manages the budget for the database.

DBMS
An abbreviation for Database Management System. A software application that enables you to create and manipulate data in the form of databases.

DCA
Acronym for the Debt Collectors Act.  The South Africa act can be viewed on www.info.gov.za/view/DownloadFileAction?id=70649. 

DDA
Acronym for Demand Deposit Account, which is a Current Account or Cheque Account.

De Dupe
Identifying and consolidating duplicate names. This is usually done in a merge/purge operation.

De Facto
Latin meaning for "in deed, in fact, in reality". It refers to a fact or an act that occurs as a matter of practice and reality rather than from de jure, meaning a lawfully and rightfully occurring act.

Dealer Training
A process whereby dealers are trained to handle and service your product.

Debenture
A certificate of indebtedness, an instrument in which a corporation or company acknowledges indebtedness for a specified sum on which interest is payable until such time that the principle sum is settled.

Debit Card
A type of payment card where the money for each transaction made with the card is debited from the cardholder’s account.

Debit Card Activation
The percentage of debit cards owners that use their card at least once a month.

Debit Transaction
A bankcard used to purchase goods and services and to obtain cash, which debits the cardholder's personal deposit account.

Debt
Money borrowed from lenders for a variety of corporate or personal purposes. The borrower pays interest for the use of the money and is obligated to repay the principal amount on a set date.

Debt Consolidation
This refers to a loan that combines all or many of a person's debts into a single loan. Debt consolidation loans might combine some or all of the following types of debts: mortgages, credit card bills, medical bills, car loans, loans to purchase major appliances, home improvement loans, etc.

Debt Ratio
Total Debt divided by Total assets.

Debt Service
The schedule for the repayment of interest and principal amount on an outstanding debt.

Debt-to-Income Ratio
The percentage of before-tax earnings that are spent to pay off loans or credit card balances.

Debtor
An entity that is seeking protection from its creditors under the bankruptcy laws.

Debtor
Any person who is liable to another for money.

Debug
To identify, diagnose, and correct errors in program logic.

Deceased
A person who has died.

Decentralisation
When a relatively large number of decisions are taken lower down the organisation in particular operating units.

Decile
One tenth of an amount. For example, the top decile of a bank’s accounts are those falling within the top 10%.

Decision Analysis
Decision analysis refers to the broad quantitative field. It overlaps operations research and statistics that deals with modelling, optimising and analysing decisions made by individuals, groups and organisations.

Decision Engine System
Enables risk managers to design and implement profitable business strategies using a graphical user interface.

Decision Key
A data element that is used to sort accounts or applications. See Data Element or Adaptive Control.

Decision Support
The activity of transforming data into information to allow for the making of decisions in an organisation.

Decision Support System
A computer-based system, almost interactive, designed to assist managers in making decisions.

Decision Tree
A tree-shaped graphical representation of the relationships between a dependent variable and a set of independent variables. Typically, the dependent variable is positioned at the top or left of the tree (root node), while independent variables (nodes) and their relationships are shown as branches in the tree. This is also called a Classification Tree.

Decision Variable
A controllable variable whose value is determined by the application and whose value forms part of the solution to the problem being solved.

Decisioning Strategy
A decisioning strategy determines how an organisation will make a particular type of decision: for example, a strategy aimed at increasing revenue, which determines how to select customers for credit line increases.

Declared Limit
The credit limit that is notified or declared to the customer.

Declines
Those applicants that are not granted the credit they applied for.

Decoy
A unique name added to a mailing list, which is used to spot unauthorised use of the list. Also see Seeds.

Decree
Scottish equivalent of a Count Court Judgment.

Deductive Reasoning
Deductive reasoning is based strictly on the rules of logic. In deductive reasoning conclusions are validated using only previously, deductively established results together with the rules of logic.

Deed of Settlement
The written record of the final resolution of an action or dispute between the parties. A deed of settlement may be made by an order of the court.

Default
Failure to carry out the terms of a loan contract by missing one or more loan payments. It could apply to any part of the loan agreement.

Default Judgment
Judgment granted to the Plaintiff in the absence of and without hearing the defendant. This judgment is taken when the defendant fails to indicate to the court that he wishes to defend the action, fails to plead or fails to attend the trial.

Default Notice
A notice that must be sent to customers who are in arrears, before litigation or other recovery actions can be taken to recover the debt. Once the notice has been served, the lender has the right to demand repayment of the full balance outstanding rather than only the arrears or over limit amount outstanding.

Default Probability
The likelihood of default on a debt within a stated timeframe.

Defect
Defect is an imperfection in a device, machine or software.

Defendant
The party responding to a court action, usually the debtor.

Deferred Interest
In some cases, a credit granter may offer an interest free period. This is usually conditional on timely payment of the minimum required instalment.

Deferred Payment
Customer is given a grace period before having to make the first account payment.

Degaussing
A magnetic stripe data erasure.

Degaussing
Magnetic stripe data erasure.

Delegation
Occurs when one person gives another the authority to undertake specific activities or decisions.

Delinquency
Failure to make a loan payment on time. Delinquent loans payments may be subject to a late fee, expressed as a flat fee or a percentage of the amount due.

Delinquency Distribution Report
A report produced from a credit grantors master file, which depicts the number of applicants booked and delinquent at various score intervals and account date opened timeframes.

Delinquent
A rating assigned to accounts when the consumer fails to make the obligatory payments. An account is delinquent when the credit obligations (payments) are not meeting the current definition (for example, an account that is 30 days delinquent has missed one month of payments; an account that is 60 days delinquent has missed two months of payment; etc.).

Delivery versus Payment
The good delivery of items in exchange for simultaneous, final and irrevocable payment.

Demand Deposit Account
This is a Current Account or Cheque Account. Also known as DDA.

Demand Feature
A feature that allows a lender to call for repayment of the full balance owed under specified conditions such as a decrease in income or the decline in value of security (collateral). See Acceleration Clause.

Demand Inflation
Price increases which result from an excess of demand over supply for the economy as a whole. Demand inflation occurs when supply cannot expand any more to meet demand; that is, when critical production factors are being fully utilised.

Demand Lead Time
The elapsed time that a customer is prepared to allow between placing an order for a product or service and actually receiving it; in certain situations this time is effectively zero.

Demand Loan
Loan with no established maturity period, which is callable on the demand of the lender, for repayment. The interest is calculated on a daily basis and paid periodically.

Demand Loan
A loan that must be repaid in full, on demand.

Dematerialisation
The process of eliminating physical certificates or documents proving title of ownership and converting these records into electronic format only. Also see Immobilisation.

Demographics
Demographic data usually refers to the data, which a country’s Census Bureau collects on a neighbourhood, such as income, education level, etc. This data can be appended to a household record. The data is not necessarily accurate for any particular household as it is the average for households in that block. However, this is usually the only data that is available.

Dependence
The interdependence of the information contributed by two or more characteristics. For example, the ownership of a car and car insurance are two characteristics, which have nearly 100% dependence. Neither of them contributes any additional information about the applicant over and above what is contributed from just one of them.

Dependent Variables
The fields that you wish to predict.

Deposit
A deposit is a varied amount paid by the borrower to reduce the overall finance or loan amount outstanding. In some cases, a minimum deposit is required on certain asset purchases, for example, a 10% down payment on vehicles purchased.

Deposit Account
A special account into which funds are deposited for a specific period, for example, 32 days. Account withdrawal can only be made upon expiry of the specific notice. The interest rate over the period is fixed with the terms of the deposit negotiated upfront. Also referred to as a Notice Deposit Account.

Deposit Credit
The value of a merchant's credit card purchases that are credited to its bank account after the acquiring bank buys the merchant's sales slips. The deposit is credited but is not funded until the acquiring bank gets the monetary value from the issuer during settlement. Also referred to as Credit Deposit.

Deregulation
The reduction of government's role in controlling markets.

Derivation
The creation of new independent variables as functions of existing fields. The new fields are created in the expectation that they will be better predictors than the existing fields.

Derivative
A financial contract whose value is derived from the performance of assets, interest rates, currency exchange rates, or indexes. Derivative transactions can include a wide assortment of financial contracts.

Derogatory
A rating assigned to accounts when the consumer fails to make the obligatory payments and is turned over for special handling, such as collections, charge-off, repossession, etc.

Descending Cumulative Statistics
A table of scores showing, for each score, the percentage of applicants that can be expected to achieve that score or higher.

Desktop
A screen that includes the background, icons, tools and windows for the computer environment. 

Detailed Analysis
The process of defining all the possible attributes for every characteristic, and analysing each to show their good/bad distributions. Also see Fine Classing and Operational Grouping.

Development Sample
The group of accounts that is used to develop the scorecard or a part of a population used to estimate or train a model. Also see Training Sample.

Dial-up Line
A communications medium described as a non-dedicated telephone line, in which a connection is established by dialling a destination number and broken when the call is complete. This is the same type of phone line that you use at home.

Dial-up Terminal
Electronic equipment used in a point-of-sale payment system that automatically dials a designated telephone number to obtain authorisation for sales by an electronic transfer of funds for cash, checks, or drafts in the purchase of retail goods and services. Also see Point-of-Sale (POS) Payment System.

Dialled Number Identification System
This is a system whereby a call centre can observe what number the incoming callers dialled to reach the call centre. This is important as call centres handle calls from many incoming numbers for many purposes, but use the same bank of agents to take the calls. The call centre personnel need to know what number people were dialling so that they can react properly to the call. Also see DNIS.

Dichotomous Outcome
Where there are only two values possible. Also known as Binary Outcome.

Differentiation
Consists of offering a product or service that is perceived as unique or distinctive on a basis other than price.

Digital
An electrical signal converted into a form consisting purely of on-off pulses, similar to those found within computers.

Digital Line
A type of telephone transmission service that is much more reliable than the standard analogue line. All data is converted into bits before it is transmitted. A standard telephone line is called an Analogue Line.

Digital Signature
An electronic signature created using a public-key algorithm. A digital signature can be used by the recipient to authenticate the identity of the sender and to ensure the integrity of the message.

Digital Subscriber Line
Also known as DSL. Technology that enables high speed information transfer to end users over ordinary copper telephone lines.

Digitising
Conversion of non-textual data to digital form.

Dimension Reduction
The reduction of the number of variables in data analysis, by elimination of those that have no impact on the analysis.

Dimensional Data Modelling
A design methodology that for each business process enumerates relevant dimensions and measures. It provides a multidimensional conceptual view of data, including full support for hierarchies and multiple hierarchies.

Diners Club
A Travel & Entertainment card issuer.

Direct Access
A disk is a direct access device. Tape drives are not direct access devices as to find data on them; you have to read all the way through thousands of records to find the one you want. With direct access, you have all of the data stored at particular addresses. Accordingly, you can access each piece of data directly.

Direct Cost Percent
The percentage of revenue that is applied to the cost of the product plus overhead, fixed costs, etc.

Direct Mail
Any commercial offer mailed to a customer or prospect known at least by name and address.

Direct Marketing
Direct marketing is an interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location, with this activity stored on a database.

Direct Marketing Interactive
This is direct marketing that produces a measurable response or purchase. The data is stored on a database.

Direct Payment
A method of collection used in the ACH network for certain claims, generally those that are repeated over a period of time, under which the debtor gives the originator a standing authorisation to debit his or her account. See ACH and ACH Network.

Direct Response
A form of advertising or promotion, which seeks to generate a measurable reaction from customers or prospects, such as an inquiry, order or visit. Print or broadcast advertisements featuring a mail-back coupon or toll-free telephone number are among the most common forms of direct response advertising.

Dirty Price
The price quoted for a bond or stock purchase, including any interest accrued.

Disclosure Statement
A document required by federal or state laws that is prepared by lenders to provide their customers with an explanation of their credit terms, such as the Annual Percentage Rate (APR), finance charge, method of interest rate computation, payment schedule and minimum monthly payment, periodic rate, principal and other fees associated with the loan.

Discontinued Operations (Net Tax)
Includes the net income from discontinued businesses as well as the gains or losses arising from their disposal.

Discount Rate
The amount by which any future currency amount must be divided to produce the net present value of the amount. The formula is DR = (1 + i)/n where i = market rate of interest and n = number of years. The interest rate is usually doubled in the formula to account for risk. See DR.

Discrete
Discrete means separate and distinct. Discretion and discreet derive from the same origin and have to do with the use of separate or individual judgement. See Categorical.

Discrete Characteristic
A characteristic where there is no connection between its attributes. For example, employment can have multiple, unrelated attributes.

Discrete Fields
Fields that contain different categories of field values. Also known as Categorical Fields.

Discriminant Analysis
A classification technique used to allocate an applicant to one of a number of existing groups, e.g. goods and bads.

Discriminate
To treat an applicant less favourably than other applicants.

Disinflation
A reduction in the rate of inflation either as a result of government policy or of declining economic activity.

Disintermediation
1) To remove the middleman. The Internet is a great force of disintermediation, whereby consumers now have the opportunity to deal directly with manufacturers, cutting out the distributors and middlemen. 2) A withdrawal of funds from a financial institution in order to invest them directly.

Disinvestment
A reduction in capital investment as reflected by a decrease in capital goods and engaged through a company's decision not to replace depleted capital goods.

Dispute
To question statements placed on a credit profile (short form codes) by either the consumer or the creditor in relation to a trade line.

Distribution
The manner in which the data within a characteristic is spread across all of the attributes.

Divergence
A measure of the strength of the scorecards. This is the distance between the means of the score distributions of Good and Bad accounts or applications. The greater the divergence, the better. Also see Scorecard Power.

Diversification
A general risk management technique that combines a variety of investments or activities within a portfolio to minimise the impact of any one investment on the overall portfolio performance.

Dividend
The proportion of a company’s earnings distributed to shareholders. Dividends are declared by the company board of directors.

DNIS
Acronym for Dialled Number Identification System. This is a system whereby a call centre can observe what number the incoming callers dialled to reach the call centre. The call centre personnel need to know what number people were dialling so that they can react properly to the call.

Docket
The schedule on which the clerk of the court records all motions, pleadings, memoranda, orders and all other court filings.

Doing Business As
Refers to the specific name and location of the merchant establishment where credit card purchases are made.

Domain Name
A Web address that can be obtained by registering with domain companies for a .com, .net, or .org domain.

Domain Name System
A general-purpose data query service whose principal use is the lookup of host addresses based on host names. Important domains are .com (commercial), .edu (educational), .net (network), .gov (U.S. government) and .org (organisation).

Dormants
Credit or charge card accounts that are rarely or never used by the cardholder.

Dow Jones Industrial Average
An index that tracks the daily share value of 30 large US companies listed on the New York Stock Exchange. The Dow Jones generally mirrors the exchange as a whole.

Down Payment
An initial, partial payment on a purchase.

Down Time
A time period when all or part of a system or network may not available to end users due to failure or maintenance.

Download
The process of sending data from the server to the PC.

Downsizing
Moving a function from a mainframe computer to a smaller computer such as a Mini, a LAN or a PC.

DR
Acronym for Discount Rate, The amount by which any future currency amount must be divided to produce the net present value of the amount. The formula is DR = (1 + i)/n where i = market rate of interest and n = number of years. The interest rate is usually doubled in the formula to account for risk.

Draft Capture
The collection, formatting, and storage of information in computer memory. Some point-of-sale terminals perform data capture functions. Also known as Data Capture. See Point-of-Sale and Sale Payment System.

DRAM
Dynamic Random Access Memory requires constant power supply and periodic refreshing to ensure data is retained.

Drill Down
To select an element in an image in order to display additional information about that element, generally by displaying another Web page or another section in the same Web page.

DSL
Acronym for Digital Subscriber Line. Technology that enables high speed information transfer to end users over ordinary copper telephone lines.

Dual Score Methods
The use of two scores in a credit decision. For example, using application score and credit bureau score, in a matrix approach, to applications decisioning.

Dual Slot
A smart card reader that can accommodate two cards simultaneously.

Dual-Interfaced Card
A smart card that has both contactless and contact style interfaces for transferring data to and from the card.

Due Date
Date on which the principal balance of a loan, debt instrument or other financial security is due and payable to the holder. Also see Maturity Date.

Due Diligence
The process of reviewing and assessing a fund’s performance, management team, processes, etc.

Dumb Terminals
A screen and keyboard linked to a computer mainframe, allowing operators to enter and receive data from a mainframe. Dumb terminals have limited independent processing power.

Dummy Variable
These are binary variables with a value 1 or 0 used to represent the coarse classed attributes of the scorecard variables.

Dump
A printed display of the contents of a tape or data file. Organisations take a dump of a sample of records in a customer database, in order to check for accuracy.

Dunning Letter
A collections letter that is sent to a delinquent account in order to elicit payment.

Dunning Level
The number of billing cycles that an account has failed to make a qualifying payment for. For example dunning level 2 means that an account has missed 2 qualifying payments. See Cycles Delinquent.

Duplicate
The same name occurring twice or more on the same file. All very large databases contain duplicates as name or address spelling may vary slightly. Good service bureaux can reduce but never totally eliminate duplicates.

Duplication Factor
The percentage of names on one list that are also on another list. It is a measure of affinity in the lists.

Dutch Auction
An auction where the value of an item decreases over time or the offering improves over time to a point where no further offers are made. This principle is to encourage clients to take up an improved offer based on the offer previously made, however the customer is never aware when the offers will cease.

Dynamic Answer
An ACD feature that automatically reconfigures the number of rings before the system answers calls, based on real-time queue information. As costs do not commence until the ACD answers calls, this feature can save callers or the call center money when long distance charges apply. See Automatic Call Distributor.

Dynamic Delinquency Report
A report that is produced on a monthly or quarterly basis, reflecting the growth in the delinquency levels of a set of accounts that have been open for approximately the same period of time.

Dynamic Performance Cohort Matrix
A report that is produced on a regular basis to monitor the growth in the delinquency levels for a set of accounts, which have been open for approximately the same length of time, (i.e. they have the same exposure period). The reports are typically updated monthly or quarterly.