• The purpose of this presentation is to provide an overview of the varied principles & common standards that need be applied in order to protect sensitive consumer data
  • Companies that utilise or subscribe to Credit Reference Agency databases are required to implement strict compliance with the Principles of Reciprocity
  • Individuals will gain a basic overview of the varied principles and gain an understanding of Credit Reference terms that may appear on credit files, whilst business will be better placed to service their balance sheets, to win, keep & retain its consumer base.
  • "a default can be said to occur as soon as a borrower fails to meet the terms of his or her credit agreement", however, the term default when recorded on a credit reference file should be used to refer to a serious default when the relationship with the individual is deemed by the lender to have broken down"


  • Common indicators :
  • The account has been referred to a collection agency or in-house debt collection department or 
  • The account has been referred for legal action or
  • The asset financed has been repossessed or instructions for repossession given or
  • The lender takes or has taken steps to cut off the service provided or
  • The customer has failed to make any satisfactory proposal in response to a demand for repayment or
  • The lender has evidence that the account has been opened for or used for fraudulent purpose.
  • Accounts fewer than three consecutive months in arrears should not be routinely filed as being in default, whilst accounts where those payments due have not been received for six months should normally be filed as being in default.
  • It is always best practice to agree terms directly with your lender in writing at the time of the start of the arrears & maintain your commitment, whilst lenders must be flexible in their approach, taking individual financial circumstance into account without prejudice to consumer credit rights.
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