Does race play a part in commercial credit scoring?
I read with interest in the FT on Saturday about a commercial credit agency in the UK that gave a profitable UK company a poor rating, due partly to the fact that neither director was a UK national. One of the directors of Powerchex called the action of agency Creditsafe discriminatory. I must say, i was surprised to see this in the paper. Being a Managing Director of a credit reference agency myself, i know the characteristics that make up our own scorecard, and race of Directors is certainly not present in the list .
In this case, the two Directors were Americans living in London.
I sincerely hope that as a nation, we don’t send out a message to the world that there is no point their entrepreneurs coming to Britain because even if they succeed in building a strong business, they won’t enjoy a good credit rating here!!!!
For more ,please see the FT article from 25th april-