Callcredit unveils realtime service

wonga_2291467bCallcredit has reacted to calls for a more robust credit checking system for payday loan firms by launching a realtime information service which will reveal other loans held by applicants.
In March last year, Labour MP Yvonne Fovargue, who chairs the All-Party Parliamentary Group on Debt and Personal Finance, said the credit industry should be forced to build a realtime database of borrowers to prevent consumers flitting between payday lenders and ending up in even more debt.
Launching in April of this year, Callcredit said that the scheme would have “a major positive impact for both lenders and consumers”. Previously details were updated on a monthly basis.
A number of firms have already signed up to the initiative, including Wonga, which will provide them with information about any missed repayments, rollovers or extensions to loans.
“Given the importance of an accurate and up-to-date picture of an individual’s borrowing history and financial position in deciding whether to extend credit, Wonga hopes that the platform will be adopted beyond the short-term credit sector and across all UK consumer financial services,” said Rael Sarembock, Wonga’s head of decision analytics.
Russell Hamblin-Boone, chief executive of the Consumer Finance Association (CFA), which represents short-term lenders, said: “The CFA supports an industry-led solution and there will be some CFA members among the early adopters of Callcredit’s model.”

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