Jump to content


Bank shares credit details


style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 6542 days.

If you need to add something to this thread then

 

Please click the "Report " link

 

at the bottom of one of the posts.

 

If you want to post a new story then

Please

Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 

 

Thanks

Recommended Posts

I am aware that the following is from 2005 but are banks allowed to share such information under the Data Protection Act?

 

Bank shares credit details

25.08.05

HSBC has become the first UK bank to share once-secret customer details with other banks and credit companies in an attempt to crack down on irresponsible lending.

Banks have long shared details of customers who have been struggling with repayments, but from now on HSBC will give credit-referencing agencies details of all the HSBC borrowing products customers hold.

A clearer picture

The Association of Payment Clearing Services backed the move. "This will enable lenders to build a better picture of someone's exposure to debt," said spokesperson Mark Bowerman. If more lenders followed HSBC's lead, lenders would be able to see how much debt the customer has already, making them better-placed to work out if they can afford to take on any more.

HBOS - the UK's largest mortgage lender - has also called on the government to release details of council tax arrears and student debts. However, as this demands a massive loosening of the data protection rules, the government is unlikely to bow to this wish any time soon.

Bad debts

The announcements follow BBC claims that trusted high street banks, including Lloyds TSB, have been mis-selling loans and loan insurance.

HSBC's move is a step in the right direction, as evidence mounts that we're starting to struggle with our £1.1 trillion collective debt. Lloyds TSB has recently confirmed that losses on its loans increased by 21% in the first six months of the year. HSBC said its bad debts were also worsening, while figures from the Council of Mortgage Lenders reveal that repossessions have increased by 50% over the last year.

How to measure?

However, even if more information is shared, the fact remains that there's still no effective guidance on how such data should be interpreted. Damon Gibbons, chair of charity Debt on Your Doorstep, said: "There's still a need for an objective measure for over-indebtedness. The government is struggling with this."

Despite government attempts to protect us from debt problems, there isn't any requirement for lenders to ascertain affordability. Paul Latham, finance director for Debt Free Direct, said: "We've got stronger rules for protection after the event, but we need them before the event."

:) Go on ... you know you want to click me :)

:lol:don't be like the banks - give a little back :lol:

:D There was a time before CAG but now CAG is here we are the empowered! :D

In progress:

Mechs and Mother (deceased) V Halifax - N1 form filed at Court 9 Aug 06

Advice & opinions of mechs, The Consumer Action Group and The Bank Action Group are offered informally, without prejudice & without liability. Seek advice of a qualified insured professional if you have any doubts.

Link to post
Share on other sites

That is what credit reference agencies do, share information, which reading this seems to be ok under the DP Act. The way I see it is that HSBC are showing any lending their customers have, not just loans etc. Not sure what else there would be though as I am not an expert.

The Consumer Action Group is a free help site.

Should you be offered help that requires payment please report it to site team.

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    • No registered users viewing this page.

  • Have we helped you ...?


×
×
  • Create New...