CoreLogic, a data firm from America, has decided to stop operating its credit-checking services in the UK after a clampdown on payday loans lenders made its business unviable.
Its Teletrack UK operations will close at the end of 2015, and will conform with data protection rules by deleting its Aware database of credit checks. This comes as a setback however to the ambitions of regulators, who hoped all lenders would be moved onto real-time credit checks.
A spokesperson said: “We have stated that the CoreLogic Teletrack UK business environment has undergone significant change in the recent past, limiting our market potential. After thoughtful review, we have made the difficult decision to exit the UK market for CoreLogic Teletrack by the end of 2015.”
CoreLogic has logged approximately 80 million subprime credit checks, for 60 clients and 2.8 million people. Its services are well-valued by British regulators, although credit checks only make up a relatively small part of Teletrack”s overall business.
After new payday loans rules were introduced at the beginning of this year, capping fees and fines, the Financial Conduct Authority (FCA) does not expect many short-term lenders to remain in the market. Many companies have restricted their operations in response to the cap changes.
