Callcredit has become the first UK credit reference agency to offer lenders a daily service alerting them to changes in their customers’ credit risk profiles.
The service, known as CallMonitor, is designed to help lenders avoid bad debts from over-indebted and fraudulent customers by providing early warnings of potential problems.
Being the UK’s first daily alert service it delivers warnings far more effectively than existing monthly services.
CallMonitor is powered by Callcredit’s dynamic database on 44 million UK consumers, which receives millions of updates everyday. It triggers alerts to lenders on a daily basis whenever consumer files register events such as missed payments, significant balance changes, new CCJs, bankruptcies and CIFAS filings. These events are often early warning signs of over-indebtedness or potential fraud.
A flexible, easy-to-deploy batch solution, CallMonitor is available with a standard set of alerts or as a tailored solution that allows lenders to specify the alerts they are interested in.
Members of SHARE, Callcredit’s closed user account performance group, will also receive alerts relating to changes in accounts that their customers may have with other members, which means they will gain a more complete insight into their customers’ credit profiles.
Callcredit’s product development director Graham Lund said: "CallMonitor is a highly cost-effective early warning system that will help lenders manage customer risk more effectively.
"All major lenders perform credit checks on new customers but many then only re-check their customers’ credit profiles when they open a new account. Yet our research shows that in just a three-month period, more than 50% of consumers experience some change in their credit profile. But this valuable information often goes unnoticed meaning that the early warning signs of bad debt or fraud remain undetected until the situation escalates and alarm bells start to ring."
He added: "CallMonitor has proved highly successful in trials. Lenders say they consider daily alerting to be extremely valuable in identifying and enabling better management of customers who are slipping into early arrears or demonstrating early signs of over-indebtedness."