Credit Card Industry Launches Data-Sharing Initiative

by Peter Wakeford
Published on 26 November 2008
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Credit Card Industry Launches Data-Sharing Initiative

A data-sharing initiative aimed at identifying customers who are in danger of getting into financial difficulties has been launched by the credit card industry.

The credit card industry has launched a data-sharing initiative which is intended to identify customers who have put themselves in danger of financial difficulty.

According to UK payments association Apacs, which announced the deal on behalf of the industry, the move will help foster a culture of responsible lending. This will help credit card providers adhere to the new Banking Code, which was introduced in March this year.

The industry already shares information about its customers, including their balance, limit and whether payments are on course. However, additional data will now be shared, including the size of their last payment and if this was equal to their minimum payment, any changes to limits, and whether they are on promotional offers.

This last piece is included so providers will know whether customers are sticking to the minimum payment because of financial problems or because of a promotion.

Peter Tutton, senior policy officer at Citizens Advice, welcomed the news. He said: "We believe that it is increasingly important that customers who are showing signs of experiencing debt stress are identified at an early stage, so that appropriate help can be provided." He added that it was "imperative" that credit card companies made "full use" of the new information.

Five card providers - Barclaycard, Capital One, GE Money, HBOS and MBNA - will begin sharing the information from December of this year, with others joining as their IT plans allow.

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8

Your Comments

Beady
on 27 Nov 2008 18:16
I trust that all who are identified as 'Problems" will be notified at once, so that mitigating circumstances related to business might be explained to the minions of our "Peoples' Republic" of the USA
 
Blue Smoke and Mirrors
on 27 Nov 2008 18:05
The want to identify the ones having a hard time paying back so they can increase their interest rates to the point of never being able to pay off the debt. They don't make any money off of people that pay back their debts.
 
Mr. Murphy
on 27 Nov 2008 17:54
Thanks to Bank of America for reducing my credit limit so conveniently after I paid my balance down (so I would have the credit available in the future) for my small business. Why you ask? Because of this information sharing! Chevron did it to! So you know what the laugh is on them, I don't buy my gas at Chevron anymore and I don't use my B of A card. I had no missed payments but I did have some erroneous negative credit reported on me that didnt belong to me- but just try getting it off your report! It takes an act of congress! The problem is that the credit reporting agencies are in the business of offering high interest credit cards. They want you to have bad crdit reports. Oh and by the way we can also thank Joe Biden our V.P for taking all those campaign contributions from credit card companys when he was Senator Joe Biden. Thanks Joe!
 
Mr Goodcents
on 27 Nov 2008 16:53
And who is watching the banks?
 
Maria
on 27 Nov 2008 15:40
The Credit card industry is using this data to hike up interest rates on those who's cards are in difficulty, once in difficulty they have no option but to pay the inflated amounts as they are now not able to get the balance transfered to another company/bank with cheaper interest rates because of this new stype black list. Don't pretend it is not a black list, it is one and it is one aimed specifically at poorer people. Just another tool for the rich to keep robbing the poor! Why do banks hike up interest charges at a time when lesser charges are needed, greed and bullying tacticts.
 
Sue
on 27 Nov 2008 15:23
They are just looking for an additional excuse to raise rates. Don't they have enough power already?
 
Dennis
on 27 Nov 2008 13:48
well they've finally wised up, it's not just how many customers they can line up and how much credit they can keep rolling, it's with how many diffrent cards customers are doing it with, because at some point there would'nt be enough money to go around, and some people feel, why worry, if something happens I'll just claim bankrupsy !!!!!!!!!!!
 
Mrs Jackson
on 27 Nov 2008 07:41
That is very kind of the credit card industry to do this! Most people have not got themselves into financial difficulties, the banks have done it to them. Most people were managing nicely and financial stress has been caused by the banks. Shame on all of them.