The guide which was originally published in 1993 has been updated to take into account changes in legislation including the Consumer Credit Act and Data Protection Act. The guide has been produced by the credit industry and credit reference agencies. The guide is for users and developers of scoring systems, and is seen as an important contributor to responsible credit granting.
Credit scoring calculates the level of risk that a loan is repaid using statistical modeling.
It enables credit grantors to manage their business more effectively, and benefits consumers who borrow what they can afford to repay. The guide also deals with the concerns of the Office of Fair Trading that consumers who are declined credit should be given reasons that are both useful and of help to them in the future. The guide has a foreword by the Director General of Fair Trading and the Data Protection Registrar, who expressed their pleasure at the way that the credit industry has adapted to changes in legislation.