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Re: ICO GUIDANCE ON DEFAULTS - Vital Reading
paras 40-43 Lending code
paras 40-43 Lending code
40. Subscribers can give CRAs default information about a customer’s debts if:
the customer has fallen behind with their payments;
the amount owed is not being disputed by the customer; and
the customer has not made a proposal that satisfies the subscriber for repaying the debt following the
subscriber’s formal demand.
41. But, in all cases, the customer must be given further notice of the intention to disclose the information at least 28 days
before the disclosure is made (for example, when a default notice or formal demand is given). At the same time,
customers must be given an explanation about how default information registered against them may affect their ability
to obtain credit in the future. This notice will mean that customers have 28 days to try to repay or come to some
arrangement with the subscriber before default information is passed to the CRA.
42. For the purposes of the second bullet in paragraph 40, a customer dispute is relevant if it refers to the amount of
money owed by the customer and is genuine, reasonable and unresolved. Further detail is provided in the ICO
guidance referenced below.
43. Subscribers should refer to the Information Commissioner’s Data Protection Technical Guidance on Filing Defaults
with CRAs (www.ico.gov.uk).
the customer has fallen behind with their payments;
the amount owed is not being disputed by the customer; and
the customer has not made a proposal that satisfies the subscriber for repaying the debt following the
subscriber’s formal demand.
41. But, in all cases, the customer must be given further notice of the intention to disclose the information at least 28 days
before the disclosure is made (for example, when a default notice or formal demand is given). At the same time,
customers must be given an explanation about how default information registered against them may affect their ability
to obtain credit in the future. This notice will mean that customers have 28 days to try to repay or come to some
arrangement with the subscriber before default information is passed to the CRA.
42. For the purposes of the second bullet in paragraph 40, a customer dispute is relevant if it refers to the amount of
money owed by the customer and is genuine, reasonable and unresolved. Further detail is provided in the ICO
guidance referenced below.
43. Subscribers should refer to the Information Commissioner’s Data Protection Technical Guidance on Filing Defaults
with CRAs (www.ico.gov.uk).
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