Credit card firms to extend customer data sharing

More information on payment patterns will be shared by credit card companies

Five UK credit card issuers - Barclaycard, Capital One, GE Money, HBoS and MBNA - will begin sharing 'behavioural data' on their customers' accounts from December.

Currently, shared credit card details include the customer's balance, credit limit and whether payments are up to date.

The new data will include the amount of their last payment checked against minimum payment amounts, as well as changes to credit limits and withdrawal limits, and whether the customer is signed up to any promotional deals.

The move is intended to identify and assist people who may be slipping into financial trouble, according to UK payments association Apacs.

But the information, which will be shared via credit reference agencies such as Experian, is also expected to offer firms more visibility into how customers use their credit cards, so that they can lend accordingly.

"The holy grail for credit card companies is to have access to data that could predict a customer's future ability to repay," said Paul Rodford, head of card payments at Apacs.

"This new data relates to how customers manage their accounts and will enable lenders to intervene, at an earlier stage, for those showing signs of debt stress and ensuring that those already struggling are not given further credit. "