Credit card providers to share more customer data

by Gill Montia

Story link: Credit card providers to share more customer data

Some of the UK’s top credit card providers have signed up to an agreement that allows new methods of sharing customers’ “behavioural data”.

The move is in response to government demands that lending practices should become more responsible than in the years leading up to the credit crisis.

From next month, Barclaycard, Capital One, GE Money, HBOS and MBNA will be sharing more information about their credit card customers and other lenders are expected to come on board in the months ahead.

Currently data sharing is focused on the customer’s balance, credit limit and payment history.

In future, the data will include the amount of the last monthly payment; changes in credit limits; cash withdrawals and details of any promotional offers included on the account.

According to UK payments services body, Apacs, this will bring the industry in line with the revised Banking Code because the change should help identify customers at risk of getting into financial difficulties.

Apacs’ head of card payments, Paul Rodford, explains that credit card providers will be able to assess how customers manage their accounts and ensure those already struggling with debt are not given further credit.

Apacs figures suggest that there are over 67 million credit cards on issue in the UK.