POR Checklist
Wednesday 10 January 2024
Principles of Reciprocity Checklist – Which credit checks can I do and when?
Definitions
Negative data – delinquent (arrears) or default (relationship between lender and borrower has broken down) data.
Positive data – all other data
| Type of member | |||||
| Screening potential members – no previous application (marketing purposes) | Screening existing members before offering them new products – no application (marketing to members) | Assessing new applications for credit – new and existing members | Assessing members with existing credit with the credit union | ||
|
Type of information |
Raw Standard Positive Data – all data other than delinquent or default data | No | No | Yes | For members in arrears with the purpose of recovery or prevention only |
| Raw Additional Positive Data – as Standard but relationg to consumer credit and store cards | Only to determine if a member is high risk | Only to determine if a member is high risk | Yes | For members in arrears with the purpose of recovery or prevention only | |
| Raw Qualifying Flags/Codes – additional information to other data e.g. arrangements, DMPs or Gone aways | Only to determine if a member is high risk | Only to determine if a member is high risk | Yes | For members in arrears with the purpose of recovery or prevention only | |
| Raw Negative Data and Arrears Data – data on defaults and arrears | Only to determine if a member is high risk | Yes | Yes | Yes | |
| Positive Characteristic – summarised data which is not raw e.g. counts, totals or averages | No | No | Yes | Yes | |
| Overall or Aggregated Risk Score – Positive | No | Yes | Yes | Yes | |
| Overall or Aggregated Risk Score – Negative | Only to determine if a member is high risk | Yes | Yes | Yes | |