Credit card firm offers identity alert - 03/01/2008

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An identity alert programme is currently being offered by a credit card provider via email in an effort to develop a loyal consumer following, according to Defaqto.

Credit card holders on Capital One's scheme can now register online for free email alerts, which will inform them of any key activities or changes to their credit file, including details of all applications made for credit.

The system, hosted by Equifax, will also provide consumers with two free credit reports each year.

According to David Black, principal consultant for banking at Defaqto, it is possible that other credit card companies will soon follow Capital One's example.

"These could take the form of linked incentive accounts, more valuable incentive schemes or specifically targeted offers at niche market segments," he explained.

"The rationale is simple - encourage credit card loyalty by offering something worthwhile as a possible prelude to the later introduction of annual charges."

According to statistics compiled last month by debt charity Credit Action, 58 per cent of credit card holders in the UK claim to repay their monthly balance in full.

There are currently 181 million plastic cards in issue in the UK, including credit, debit and charge cards.

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