30 March 2006
A number of the high street's biggest banks have signed up to a new scheme aimed at increasing awareness of customer indebtedness.
HBOS, HSBC, Lloyds TSB and RBS are all involved in the scheme. Working in conjunction with a credit reference agency, Callcredit, the banks will be better placed to assess the suitable credit commitments for each customer.
Customers and lenders alike are set to benefit from the scheme and there are hopes to turn it into an industry wide initiative.
Callcredit managing director John McAndrew said: "The government wants more customer protection for borrowers and the lenders want to provide a better service to their customers. We are delighted to have been able to help the industry achieve this.
"It is true that only a small percentage of customers are overindebted and our initiative provides additional opportunities to offer these customers appropriate advice and support."
It is hoped that consumers will benefit from early warning and support when they are approaching the limits of their credit affordability.
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