Possibility of free credit checks for victims of data loss : Credit Card Guide

Possibility of free credit checks for victims of data loss

Following the recent fiasco where HM Revenues and Customs lost disks containing the bank account details of around 25 million people, the government has entered into talks with two of the nation's largest credit reference agencies, with a view to offering free credit checks to those that may be affected by the loss of data.

Around seven million families have been affected by the loss of data, and the government has issued warnings that those affected need to be on guard to reduce the chances of becoming the victims of fraud.

Details are still being discussed between the credit reference agencies, Experian and Call Credit, and the government. It is not yet clear whether the discussions relate to providing one free credit report to those affected or whether it will be for continual access to credit reports over the coming weeks. A single credit report normally costs the consumer £2 and access to live reports on a continual basis costs £6.99 per month.

It is estimated that the cost of providing these reports to those whose information has been lose could be as high as £50 million. Another credit reference agency has stated that it will offer a reduction of around 60% on the cost of credit reports to those affected by the blunder. With the other agencies it is not yet clear who will foot the bill for the cost of these reports.

One official from Call Credit stated: 'No agency, including ourselves, is going to do this out of the goodness of their heart. Whether the Government will cover the costs or not at this stage is unclear, but there is a reason why agencies are stepping forward like this.'

Tom Smith
1st December 2007

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