NEWS...
Principles of Reciprocity Encouraged
Industry leaders should reconsider the principles of reciprocity in data sharing, according to experts.
Speaking at the recent IEA Consumer Finance Conference, Donna Pumfrey, director of public policy at MBNA, said it wasn't helpful when credit card lenders couldn't see current account information.
The principles of reciprocity would allow lenders would only be able to see data if they contribute their own, equivalent, figures.
Donna explained: "I think it is time the principles of reciprocity were looked at again. We don't offer current accounts so can't see that data. If you have the right controls around it you should be able to do it."
Paul Ross, retail director at BBA, thought it could help with lending decisions, although banks would always fear that the information would be used for marketing campaigns.
He added: "It's a very difficult area. The idea is you get out what you put in. You'd have to find a manageable way of doing that."
Gev Lynott, Asda's head of financial services, concurred: "I support the idea. I think the time has come."
Original article courtesy of Credit Today. For further information visit www.credittoday.co.uk
