Credit card lenders to pool data on debts

gobbyash

http://thescotsman.scotsman.com/business.cfm?id=2343562005


FOUR lenders have unveiled plans to share information on their credit card customers in a bid to spot those getting into financial difficulties.

Barclaycard, Abbey, the Co-operative Bank and Egg will share data on how much is being spent on a card each month, including how much is being taken as cash, as well as how much is being repaid.

They will also give details on any changes to credit limits, how many people use the card and any cheques that have been sent in for payment, but have subsequently bounced.

The groups hope that by sharing this "behavioural data" they will be able to identify changes that suggest someone is having debt problems.

The move comes just days after analysts predicted profits at Barclaycard, which tumbled 17 per cent during the first half of the year, would be hit further during the second half due to bad debt.

But Barclaycard insisted the move was not purely motivated by this issue, adding that, while "good lending decisions" were obviously good for its business, they would also help consumers.

It is the first time information of this nature will be shared between different lenders, although the industry has shared data about customers who have fallen behind on payments since the late 1980s.

Robert_Sterling

A step in the right direction if it leads to less reckless lending.

abe999

Too Bloody Right,

About time they stopped pestering peeps with new cards and raised credit limits.

Every time I step in the bank I have to suffer the "do you know that we offer a credit card" etc etc.

Lenders are too quick to dish out the cash and then go "wot" "wot did we do" when peeps fail to pay.

They are like Jeckyll and Hyde. Smiling when you are paying but the bloody knives soon come out when you can't. (rant over!)