EQUIFAX WELCOMES NEW BBA GUIDELINES
Helping banks act to help borrowers vulnerable to repossession
London 16th January 2008 – Leading consumer credit information expert, Equifax has welcomed the news that the British Bankers' Association has introduced new guidelines to help borrowers defaulting on mortgages. The new initiative aims to put the onus on lenders to take action to help borrowers who could be getting into financial difficulties. Equifax’s Risk Navigator credit scoring tool offers banks powerful account management capabilities to help them spot borrowers in danger of defaulting.
Previously, it has been the borrower’s responsibility to contact lenders if they were having trouble paying their debts. However, the new BBA guidance places the onus on banks to monitor consumers for signs of struggling and to contact individuals to help them resolve the issue.
“There are concerns that the interest rate hikes of 2007, combined with some 1.5 million borrowers coming to the end of fixed term rates will leave many homeowners in dire straits, as their monthly payments go up,” explains Neil Munroe, External Affairs Director, Equifax. “We are delighted, therefore, to see the banking industry taking significant steps to protect borrowers. Heavily indebted borrowers are most likely to suffer from the impact of rising interest rates, leaving themselves vulnerable to repossession.”
The BBA guidelines expect banks to look for key signs of indebtedness, such as bounced cheques for utility bills, missed repayments on loans or people falling further into their overdrafts and when these are identified to take action and help borrowers create a plan to regain control of their finances.
Equifax’s Risk Navigator and Insolvency Navigator credit scoring tools offer banks powerful account management capabilities to help them spot borrowers in danger of defaulting and or becoming insolvent. With access to information on over 45 million consumers, including CCJs and credit searches, and over 300 million consumer credit agreements and payment performance data, Equifax’s risk scoring solutions can help banks and other lenders monitor the on-going performance of their customers, and provide a highly effective customer account management tool.
“These new guidelines will heighten the need for banks to undertake account monitoring” concludes Neil Munroe. “Banks need to ensure they have the right systems in place to be able to meet the new guidelines and help borrowers avoid the threat of mortgage defaults and repossession and we believe Equifax Risk Navigator can provide a very effective tool to achieve this.”
ENDS
For further press information please contact: Wendy Harrison, Margot Tomkinson or Linda Pearson at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: wendy@harrisonsadler.com
About Equifax
Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.
Customers have trusted Equifax for over 100 years to deliver innovative solutions with the highest integrity and reliability. Businesses – large and small – rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, and much more. We empower individual consumers to manage their personal credit information, protect their identity, and maximize their financial well-being.
Headquartered in Atlanta, Georgia, Equifax Inc. employs approximately 6,900 people in 14 countries through North America, Latin America and Europe. Equifax is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.
Equifax. Information That Empowers.
