Consumer Credit Bill — New Clause 1 — Data Sharing — 14 Jul 2005 at 13:15

After section 36F of the 1974 Act (inserted by section 50 of this Act) insert:

36G Data Sharing (1) In this section— 'authorised person' means a consumer credit business, or consumer hire business, or an ancillary credit business or any person acting on behalf of any such business. 'credit reference agency' means any person within the meaning of section 145(8) and who holds a licence in respect of such activities under Part III of this Act. all reference to 'debtor' shall include a reference to hirer and all references to credit shall include a reference to hire. (2) Any authorised person may, provided the conditions in subsection (3) below are satisfied, disclose to a credit reference agency, and the authorised person and credit reference agency may use, any information relating to the credit history or financial standing of any debtor of the authorised person, for the purposes referred to in subsection (4) below, notwithstanding any enactment or rule of law prohibiting or restricting the disclosure or use of, or authorising the withholding of, such information. (3) The conditions referred to in subsection (2) above are that— (a) the authorised person has notified the debtor that it may disclose the debtor's information under this section; and (b) the debtor has not, within 28 days of the date of notification, informed the authorised person in writing that he objects to such disclosure of his information. (4) For the purposes of subsection (2) above, the permitted purposes are— (a) vetting applications for credit or applications that can result in the giving of credit or giving of any guarantee, indemnity, or assurance in relation to the giving of credit; (b) verifying the identity of the debtor or any applicant for credit, for the purpose of or in connection with an application for credit, or for any other purpose relevant to the financial standing of the debtor, including the prevention of money laundering; (c) managing credit accounts including debt tracing and recovery; (d) preventing, detecting or apprehending crime, and for the enforcement of criminal law whether in England and Wales or elsewhere including the tracing and recovery of any sanctions imposed thereunder; (e) statistical analysis of credit risk assessment in a case where no individual is referred to by name or necessary implication; (f) any other purpose to which the debtor subsequently consents; and (g) any other purpose specified in an Order made by the Secretary of State for the purpose of this subsection (4). (5) In this section— 'application for credit' includes an application to refinance or reschedule an existing credit agreement; 'credit reference services' means the furnishing of persons with information relevant to financial standing of individuals, which is information collected by the person furnishing the purpose of so furnishing it.".'.—[Norman Lamb.]

I beg to move, That the clause be read a Second time.

The House divided: Ayes 106, Noes 234.

Debate in Parliament | Source |