EQUIFAX WELCOMES PAYDAY LENDERS' COMMITMENT TO BETTER CONSUMER PROTECTION
“Full data sharing can help payday lenders meet their commitment for robust credit and affordability assessments”
London, 24th May 2012 - Equifax has welcomed the announcement today from the Department for Business, Innovation and Skills (BIS) on improved codes of practice by payday lenders. In particular, Equifax believes that the commitment from the sector supports its call for all payday lenders to participate in full data sharing.
Neil Munroe, External Affairs Director, Equifax, said: “Earlier this year, the BIS Committee report stated that credit checking is a key factor in ensuring appropriate lending to consumers and it highlighted a concern that not all payday providers are recording all their transactions. It recommended that payday lenders record all loan transactions on a shared database so that consumers’ credit histories can be accurately monitored.”
“The latest commitment by the payday lending sector for improved consumer protection is, therefore, excellent news. Equifax is already working with a number of payday lenders and this will provide even stronger foundations to get the processes in place for full data sharing across the sector.”
“Sharing data about customers’ payment behaviour enables payday lenders to check that they are not lending irresponsibly to people who have multiple loans and who are rolling debt over from one payment period to the next,” continued Neil Munroe. “But, as importantly, when the data is also made available to mainstream lenders, such as the high street banks, this will help to rehabilitate the credit records of higher risk borrowers who repay their payday loans on time.”
“There is no question that finances are difficult for many people and the payday loan sector provides a solution for some. But it is also vital that consumers are not allowed to simply get deeper and deeper into debt by rolling over loans or simply switching from one lender to another. Full data sharing by the payday lenders will address that risk.”
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Equifax is a global leader in consumer and commercial information solutions, providing businesses of all sizes and consumers with information they can trust. We organize and assimilate data on more than 500 million consumers and 81 million businesses worldwide, and use advanced analytics and proprietary technology to create and deliver customized insights that enrich both the performance of businesses and the lives of consumers.
Headquartered in Atlanta, Equifax operates or has investments in 18 countries and is a member of Standard & Poor’s (S&P) 500® Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. For more information, please visit www.equifax.com.