NEWS...
Data Sector Threatened by Axe
Credit reference agency Callcredit has claimed abolishing the edited electoral register would lead to the failure of a 'number of companies engaged in the information sector in the UK'.
In their response to the MoJ's recent consultation on the matter, Callcredit also underlined that the edited register 'must under no circumstances be abolished'.
It highlighted the fear that replacing the comprehensive nature of the edited register would take a long while and would be costly, with some businesses not being able to afford – and therefore survive – such changes.
If businesses are no longer able to locate debtors then it will impact on whether or not they can extend credit. Current collection guidelines state finding a debtor is not enough and there must be certainty in identification to avoid distress to innocent parties.
Callcredit's response also added: "If people can readily abscond leaving a trail of unpaid debt, this will limit the circumstances in which companies will be prepared to offer credit, and increase the cost, because there will be more occasions where the debt ends up having to be written off."
However, some key figures in the industry believe even the edited register does not provide enough information.
Callcredit's response echoes the sentiments of both the CSA and DBSG, which have previously stated the perils of introducing such measures into the industry.
Original article courtesy of Credit Today.
