Press Release

EQUIFAX SUPPORTS CML ACTION PLAN

Account management tools key for lenders reducing impact of credit crunch

London, June 2008 - Leading credit information provider, Equifax is supporting the recent letter sent to Chancellor, Alistair Darling by the Council of Mortgage Lenders (CML) proposing a range of activities designed to help borrowers in financial difficulty.

The CML has announced a plan of action to be taken by lenders to minimise the impact of the credit crunch on borrowers. CML members are focusing on measures to ensure repossessions are a last resort and will be analysing existing arrears management policies to implement changes in line with industry guidance. Actions include offering consumers early warning of when they are coming out of a fixed rate deal and onto higher rates, as well as outlining their own arrears management process to help borrowers understand what to expect.

"The new CML initiative is a welcome step in helping borrowers weather the current credit crunch," confirmed Neil Munroe, External Affairs Director for Equifax. "The latest CML figures indicate that more than 23,200 people who took out 100% mortgages in the year to 31 March could face negative equity. And arrears levels have increased in the last year, with the level of repossessions predicted to be around 45,000 for the whole of 2008. It is critical, therefore, that lenders act now to help consumers through this difficult financial time.

"Whilst credit scoring has, historically, not been a heavily used tool in the mortgage lending sector, with the new Banking Code and the increased pressure on consumer finances, it is crucial that all forms of good account management practice are employed. In particular, lenders should work with the credit reference agencies to create scoring models that offer a clear - and complete - picture of an individual's financial status.

"More and more mortgage lenders are recognising the value of Equifax's information and scoring tools for on-going account management. By being able to identify the customers who are going into arrears on other credit products, lenders can spot the early warning signs of those facing financial difficulties.

"The CML's letter to Alistair Darling demonstrates clear commitment from the industry as a whole to find ways to manage its business, while lending responsibly. Equifax will continue to deliver high quality credit information that offers a range of solutions to help mortgage lenders face the challenges of the current market."

For further press information please contact: Wendy Harrison, Cecile Stearn, Margot Tomkinson or Jenny Staniforth at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: wendy@harrisonsadler.com