Callcredit launches new initiative

YORKSHIRE’S Callcredit Information Group has today announced that it is the first mainstream credit reference agency in the UK to offer a more real-time data sharing capability to lenders.

Leeds-headquartered Callcredit has launched its new service MODA and says those who have already signed up to the new initiative include Wonga, Uncle Buck, Pounds to Pocket, QuickQuid, PDL Finance (Mr Lender), Cash on Go (Peachy), MYJAR, My Mate, Northway (Swift Sterling), Sunny, Trusted Cash, Trusted Quid, and MEM (Payday Express).

Peter Mansfield, managing director at Callcredit said: “The alternative lending market has come under increased scrutiny from its regulator recently and the need to lend responsibly has never been greater. MODA supports responsible lending by providing lenders with an up to date view of significant events on consumers’ credit files on which they can base more accurate and responsible lending decisions.

“MODA provides us with the capability to update our data as quickly as the data providers send it to us. At present this frequency is daily, and we have the capability to increase the regularity of data updates.”
 
MODA will report on key changes in a consumer’s credit file.  These include new account openings and significant changes to existing accounts, such as overdue payments, rectified and settled accounts, rollovers and credit extensions.  This comprehensive view will offer a stronger and more up to date basis for more accurate assessments of the credit risk and affordability associated with new lending applications and provides the fastest and most detailed credit report currently available, Callcredit said.

Mansfield added: “Whilst many of the largest lenders in the Alternative Finance market have already signed up to our new data sharing initiative, we are seeing interest from a variety of lenders and expect widespread participation. This new initiative will help lenders to make the best possible risk assessments and lending decisions. Short Term Loans account for only a small percentage of over-indebtedness in the UK and it’s imperative that any solution provides benefits to a wide variety of lenders and consumers alike. We are currently talking with a wide range of lenders regarding their participation within MODA over the next few months.”