Credit check pays off for Experian’s £63m man

In the money: Brian Cassin

The boss of Experian, whose credit checking determines whether people qualify for loans and credit cards, has landed another bumper pay packet as households grapple with spiralling bills.

Brian Cassin made £7.4 million last year, confirming his position as one of the highest-paid chief executives in the FTSE 100 index of leading companies.

The payout takes his total earnings since taking charge nine years ago to more than £63 million.

Experian and its two main rivals, Equifax and TransUnion, hold highly sensitive data on almost every adult in the UK.

They play a vital role in deciding who gets a mortgage, personal loan, car insurance – or even a basic bank account or mobile phone.

Its activities are under increasing scrutiny as access to credit is crucial for many families trying to navigate the cost of living crisis.

Credit reference agencies hold information about where individuals live, how much they have borrowed and how quickly loans have been repaid.

The data is collected on behalf of banks and other lenders to build a credit score that helps them decide whether an applicant is a safe financial bet.

But concerns have been raised over how agencies use the information they hold, and its accuracy. Earlier this year a tribunal found that Experian had not handled the personal data of more than five million people transparently, fairly or lawfully because it failed to tell them it was being processed for direct marketing purposes.

But it rejected claims brought by the Information Commissioner’s Office (ICO) that Experian’s privacy notice was unclear, that using credit reference data for marketing was unfair, and that Experian did not properly assess its lawful basis.

Experian said it was ‘very pleased’ with the decision, which the ICO is appealing against.

The Financial Conduct Authority, the City watchdog, has also urged credit reference agencies to improve the quality of their data amid concerns that millions of people could be excluded from accessing finance due to inaccurate information. It is also investigating whether there is a lack of competition in the UK credit rating market.

It is estimated that over seven million people in the UK risk being excluded from accessing affordable financial services because of flaws in credit scoring, which forces them instead to turn to more expensive options such as sub-prime lenders, according to a report by software firm Lexis- Nexis Risk Solutions.

Another survey by Experian found that five million people struggle to access financial products and public services, because there isn’t enough information on their credit record.

These so-called ‘credit invisibles’ include those on low incomes, young people without an established credit score, recent immigrants and expats, and older people who have limited credit and therefore no file.

Cassin, 55, saw his pay package fall from £8.5 million the previous year as Experian’s profits dipped.

With its headquarters in Dublin, the bulk of Experian’s business is in North America.

Revenues in the UK and Ireland rose 5 per cent to $784 million (£613 million) in the year to March, while profits nudged 1 per cent higher to $170 million (£133 million).

The shares, which peaked at just over £36 at the start of 2022, have since fallen below £30, valuing Experian at £27 billion.

This post first appeared on Dailymail.co.uk