Payday lenders to share instant data on borrowers

Loans sign Payday lending picked up when banks pulled back on credit

Payday lenders will receive more up to date information about individuals' borrowing habits when they apply for a loan.

Concerns have been raised about how easy it is for borrowers to overextend themselves by signing up for multiple loans from different lenders.

But from April, credit reference agency Callcredit will offer daily information about other loans held by an applicant.

At present this information is only updated every month.

Borrowers would still be able to apply for several loans on the same day but people finding themselves in a debt spiral should find it much more difficult to secure multiple loans.


Callcredit said that the move would have "a major positive impact for both lenders and consumers".

The industry has come under pressure from MPs to improve sharing of up-to-date information among payday lenders.

A number have signed up to the latest initiative, which will provide them with information about any missed repayments, rollovers or extensions to loans.

Lender Wonga is among those companies which have signed up.

"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, 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."

More on This Story

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

More Business stories



  • A very clever little girlBrain gain

    Are people getting more intelligent?

  • Don Roberto Placa Quiet Don

    The world's worst interview - with one of the loneliest men on Earth

  • This Chinese character has taken China's internet by stormDuang duang duang

    China goes crazy for Jackie Chan's mystery word

  • Lauren Wallace (right) wins the women's 1000m Day in pictures

    Striking images from around the world over the past 24 hours

From BBC Capital


  • 3D model of Christ the Redeemer statueClick Watch

    Using drones to 3D map the famous Brazilian landmark Christ the Redeemer

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.