Banks To Share Information To Reduce Debts
July 27th, 2005
I’m not sure what the privacy zealots will feel about this (or indeed if they’ve got anything to worry about at all), but HSBC is taking steps, which is likely to be followed by other retail banks, to share customer information with other banks with a view to reducing the ease with which those already in debt can borrow more money.
They will be sharing all personal credit information (both good and bad) on their customers through the 3 main credit agencies, Experian, Equifax and CallCredit.
It is seen as a good way of ensuring that the banks only lend to those that can afford it, and I guess it will work in the same way as credit checks that are taken out in other areas of the financial industry.
