Four high street banks are teaming up to try to halt the burgeoning mountain of personal debt in the UK.
HBOS, HSBC, Lloyds TSB and the Royal Bank of Scotland are to collaborate with the credit reference agency Callcredit in an attempt to better manage levels of debt.
The banks are concerned that credit card companies, homeowner loan providers and other finance companies dealing with unsecured borrowing have not done enough to calculate affordability when issuing debt.
The banks will share their customer information, along with Callcredit’s database, to identify customers who may need help to tackle their debt levels.
“The government wants more customer protection for borrowers and the lenders want to provide a better service to their customers,” said John McAndrew of Callcredit.
“We are delighted to have been able to help the industry achieve this. It is true that only a small percentage of customers are over-indebted and our initiative provides additional opportunities to offer these customers appropriate advice and support.”
The programme will also launch an “early warning” system which will let customers know if they begin to approach the limits of their affordable debt.
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