Credit Card Companies Share Data to Identify Customers in Financial Danger

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Credit Card Companies Share Data to Identify Customers in Financial Danger

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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.

source link: http://www.money.co.uk/article/1002074-credit-card-industry-launches-data-sharing-initiative.htm