Press Release

DON'T LET THE POSTAL STRIKE HIT YOUR CREDIT RATING

Equifax warns of long-term impact of missed payments

London 23rd September 2009 - Leading instant online credit information provider, Equifax, is warning consumers to make sure late payments on credit cards as a result of the postal strike doesn't cost them more than a penalty charge.

"It has been reported that credit card holders could face late payment fees totalling £150 million because of the regional postal strikes that have already taken place", confirmed Neil Munroe, External Affairs Director, Equifax. "And whilst these fees could soon mount up, what should be of equal concern is the impact late payments could have on someone's credit rating if they are not dealt with quickly."

It has been estimated that over 13 million people with active credit cards rely on the post to deliver their monthly cheque payments. Wanting to hold onto their cash for as long as possible, many people send off their payments pretty close to the deadline. But the cheques may already have been delayed as a result of the regional postal strikes and if consumers don't check with their credit companies that they've received payment, they may find they incur a penalty charge for late payments - and could even have a default notice on their credit file.

"In the current climate you have to have a pretty good credit status to be able to get new loans or finance", continued Neil Munroe. "So just one late payment - even if it was of no fault of your own but down to a postal strike - could be the difference between getting approval on a new credit agreement or getting the best rate - or not.

"Many credit card companies will apply a 'grace period' before they report late payments to the credit reference agencies - but with reports of backlogs of post already building up at sorting offices and the threat of a national postal strike, there is a risk payments could be delayed for some time. If consumers don't check that credit companies have received their payments they could be in for a nasty surprise.

"What is particularly concerning us at the moment is that a number of families and individuals are reaching the end of fixed rate mortgage deals. So they are shopping around for the next deal and need their credit status to be as good as possible to get the best rate. It would be a huge shame for them to have a default on their credit file which will affect their credit rating, simply because the cheque was delayed in the post.

"Our advice is switch to direct debit; use the post office or go online and make the payments direct. Direct debit payments can be timed to only take the payment out of your bank account at the right time to meet the deadline and avoid any risk to your credit status - or penalty charges. And, of course, you're completely in charge of timings if you choose to pay via the post office or online.

"It is probably also worth getting an up to date copy of your credit report to check if any defaults have gone onto your credit file already. If they have - and they were genuinely because of late payments as a result of the postal strikes - then you can add a Notice of Correction to your credit file to explain the reasons. This information will be held on your credit file for future lenders to review."

The Equifax Credit Report, with the facility to access credit information for the first 30 days free, is accessible simply by logging onto www.equifax.co.uk. Designed to help individuals understand their credit file and see what lenders see to assess new credit applications, the Equifax Credit Report also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life's challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

ENDS

For interviews with Neil Munroe please contact the Equifax Press Office: Wendy Harrison, Cecile Stearn, Elinor Puzey or Louise Fowler on 020 8977 9132. louise@harrisonsadler.com