Press Release

DON'T LET SLEEPING ACCOUNTS LIE!

Equifax warns that dormant accounts could cost more than just a 'dormancy fee'

London, 2nd September 2009 - Credit card provider, American Express, has recently announced that it plans to charge customers who no longer use their Amex card. A £20 per year 'dormancy fee' will be charged to all Platinum Cashback credit card holders 'if the aggregate amount of all transactions [on their account], other than cash advances & balance transfers, that have taken place during the preceding 12 months is £0'. Whilst this is indicative of actions being taken by a number of credit card providers, leading instant online credit information provider, Equifax, is warning that unused accounts could cost more than just a 'dormancy fee'.

"The current market conditions mean that many lenders want to be certain that new applicants are not at any risk of becoming indebted" confirmed Neil Munroe, External Affairs Director, Equifax. "And this includes looking at how many credit cards they may have on their credit file - even if some of those accounts aren't being used at all. A considerable number of credit cards on an individual's credit file could have quite a detrimental affect on their credit score - and could be the difference between them getting a yes or no on a new loan or credit card application. Their score will also, just as importantly, could have a significant influence on the rate they are offered.

"Many consumers keep extra accounts open for an emergency. However dormant accounts, where the account is not active but has not been closed, can leave consumers vulnerable to credit refusal and even ID theft. It's crucial, therefore, that if someone has an account or card they simply are not using - and probably don't intend to use again - they close it down."

Equifax is advising consumers to get a copy of their credit report to check on all the accounts they may have opened and identify any that might be worth closing. Getting an up to date copy of their credit file will also give them a valuable insight into any accounts that may have a small outstanding balance that, perhaps, they had forgotten about because the minimum payment was being made by standing order each month.

"Of course many consumers have a very good grip on their financial commitments" continued Neil Munroe. "But a recent survey we conducted amongst Equifax Personal Solutions customers* revealed that 15% didn't know how much they owed on credit cards and other loans. For these individuals, getting a copy of their credit report could provide a useful insight - and even save them some money in the long-term."

The Equifax Credit Report, with the facility to access credit information for the first 30 days free, is accessible simply by logging onto www.equifax.co.uk. Designed to help individuals understand their credit file and see what lenders see to assess new credit applications, the Equifax Credit Report also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life's challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

ENDS

*Survey conducted May 2009 amongst 1704 Equifax Personal Solutions customers

For interviews with Neil Munroe please contact the Equifax Press Office: Wendy Harrison, Cecile Stearn, Elinor Puzey or Louise Fowler on 020 8977 9132. louise@harrisonsadler.com