Reaction to the Government’s Over-Indebtedness Annual Report
December 7th, 2007 Leave a comment Visited 24 times, 1 so far today
Graham Lund, Deputy Managing Director, Callcredit comments “The DTI classifies an individual as being a cause for concern if they spend more than 25% of their gross salary on unsecured debt, or 50% if rent or mortgage is included. This currently accounts for around 8-10% of people but with the current predictions for a worsening economic climate, the number affected may well increase in 2008.
“In 2004, in line with DTI launching a task force to tackle the over-indebtedness problem, Callcredit consulted with major lenders and determined that there was a clear need for increased data sharing, in order to ensure responsible lending. To this effect in 2006 we launched our Over-Indebtedness Initiative with some of the major high street banks sharing details on their customers’ income for the first time. The additional shared data has been of significant value to the lenders, enabling them to make decisions on whether to lend based on financial commitments and income and providing them with a more realistic picture of affordability.
“Our advice to consumers is always to seek help as soon as they think they are in financial difficulties from either their lender or a professional body such as the Consumer Credit Counselling Service.”
ENDS
About Callcredit:
· Callcredit (www.callcredit.co.uk) is the UK’s most innovative, state-of-the art credit reference agency, with an extensive range of information and value added services for businesses and individuals.
· MyCallcredit is the consumer arm of credit reference agency Callcredit and provides consumers with online access to the details of their credit file at http://www.mycallcredit.com/
· Callcredit has harnessed state-of-the-art information technology with an unrivalled knowledge of the industry’s needs to develop a range of innovative information solutions. Solutions that are enabling major lenders and a host of other blue chip companies to address regulatory requirements, make better credit decisions, target new customers more effectively and manage existing customers more profitably.
· Callcredit forms part of the Skipton Information Group, and is one of five core businesses along with database management company EuroDirect, market analysis firm GMAP Consulting, online payment service provider, Legatio and DecisionMetrics, specialists in the development and implementation of scorecards and affordability assessment.
Julia Burchell
GolinHarris
Fox Court
14 Gray’s Inn Road
London
WC1X 8WS
t +44 (0) 207 067 0017
f +44 (0) 870 990 5447
m +44 (0) 7970 720 329
jburchell {at} golinharris(.)com
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