Equifax supports calls for more data to be shared on credit files

The Competition Commission has released its report on competition in the Home Credit market. In the report summary, published 27th April 2006, the Competition Commission provisionally concluded that the lack of competition, from other credit products, new entrants or among the home credit providers themselves, means that customers face higher prices for their loans than would be expected in a competitive market. Amongst the proposals made by the Competition Commission to address what it believes to be unfair consumer conditions, it has proposed that a wider use of data sharing in the Home Credit sector.

Leading online consumer credit information provider, Equifax, welcomes this data sharing recommendation. Equifax is already working with several of the leading Home Credit companies to load their customer payment records onto the Equifax consumer credit database, and External Affairs Director, Neil Munroe, believes this is an important step in improving the competitiveness of this source of finance for the consumer market.

?The Home Credit sector fulfils an important role in the overall consumer credit marketplace. A significant proportion of consumers do not want to work with the major retail lenders and banks and prefer this face to face source of credit. But it is important that it is competitive in the consumer lending market as a whole, and we firmly believe that data sharing by the key Home Credit companies will go a long way towards giving them the ability to become more competitive.

?We are already working with several major Home Credit companies to load their customer payment records onto our Insight database ? which is shared amongst most of the UK?s major consumer lenders. By being part of this community the Home Credit companies will be able to gain a better understanding of a consumer?s existing financial commitments in order to extend credit at the most competitive rate.?