CA calls for sharing of positive credit data (Jan 2005)

PRESS RELEASE

25 January 2005

Creditors Urged to Share Minimum Repayment Information
Credit Action, the money education charity is urging creditors to share minimum payment information on credit cards in order to limit the growing trend in extreme debt which causes great distress to individuals and their families.
"The vast majority of people do borrow responsibly," according to Keith Tondeur, Credit Action's national director, "but a growing number of people, for a whole variety of reasons, are borrowing more than they can ever hope to repay. This makes them desperate and drives them to despair and even, as in some recent instances, to suicide.

Often, as long as the customers are making minimum repayments, which are typically only about two per cent of the debt, creditors have no reason to believe that their customers may have borrowed beyond their ability to repay.
"Sharing of payment information does have data protection issues, but in my view there is more to be gained than lost in sharing such information."

According to Credit Action, these cases of extreme debt i.e. over £100,000 are a fairly recent phenomenon, happening in the last two or three years. Credit Action is convinced that sharing minimum payment information would halt the trend.
Credit Action helplines are open 8am to 8pm, Monday to Friday on 0800 138 1111 while practical information about everyday money matters is available at www.moneybasics.co.uk

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Notes for editors:
Credit Action is a national money education charity (registered Charity No. 1035783) established in 1994. It aims to teach people to manage money better and prevent over-indebtedness and uses a wide range of resources to this end. Credit Action also campaigns to encourage greater understanding of the need for more financial education and literacy. For those with debt problems, Credit Action offers a helpline through Consumer Credit Counselling Service, the UK's leading debt charity.