Sharing Non-Consensual Credit Data
The Government is keen to promote responsible lending in the credit market as part of its strategy to minimise over-indebtedness.
One aspect of responsible lending concerns the making of lending decisions. Lenders are encouraged, wherever practicable, to consider the full extent of a consumer’s credit commitments when deciding whether or not to lend to that individual.
This is usually achieved through the sharing of credit data via Credit Reference Agencies. However, accounts opened before the late 1990s did not contain provision for customers to give permission for data to be shared and lenders are therefore unable to share this non-consensual credit data.
A consultation earlier in 2007 sought views on the extent to which data on certain customers' existing credit commitments could be shared by lenders, subject to appropriate safeguards, in order to enable lenders to make better, more responsible, lending decisions.
The consultation considered the removal of barriers to the sharing of such data and sought views on the appropriate balance between individuals' rights to privacy and the protection of their data on the one hand and the wider public interest of responsible lending on the other.
The Government considered the responses to the consultation and decided to establish an expert working group to examine in detail the costs, benefits and options. The group comprises representatives of lenders, credit reference agencies, consumer groups, academia, relevant government departments and public bodies who have an in-depth understanding of data sharing practice, as well as data protection and human rights considerations. The group will report its findings to Ministers within a year.
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