25 Feb 2015

A question about : Are credit reference agencies government regulated?

I'd like to know why they're held in such high regard without any doubt of their legitimacy by banks and lenders the country over. Surely there's some legislation they have to adhere to in order to confirm that the information they have is true - something other than he said she did this, so we hold that information.

Best answers:

  • I don't know if there is specific legislation but they are definitely covered by data protection which holds that all information must be accurate
  • Data protection Act 1998
  • Is that seriously all?
  • It is a joke, isn't it? Add to the fact that you cannot check your data without providing a further swathe of personal information which they use to populate their data set - and you cannot opt out of this requirement.
    Add the fact there is now a land-grab for your NI number due to the change in Electoral Registration rules - the gift that just keeps on giving.
  • On the phone with equifax. The only information they take is (bless the poor woman, she didn't speak much english and I grilled her for an hour) "data" and "documentation" from a lender.
    They do not request any evidence or proof of a credit agreement at all. Not one bit.
    The only thing they adhere to is the data protection act 1998, however, if they're not asking for evidence or proof of the information that they hold, then they're distributing false information.
    https://www.cps.gov.uk/legal/d_to_g/fraud_act/#a07
    If we look at this nugget of information from the CPS, we'll see that this is definitely, without a shadow of a doubt, fraud.
    Fraud via false representation, misuse of a position of power, and generally... well... alot of stuff to be honest.
    One part of that which proves the fraud to be something that should be taken to court is the phrase "loss & gain". The consumer loses their ability to obtain credit and the credit agencies with their "scores" stand to 'gain' many ЈЈЈ from instilling a sense of fear in the public.
    I wonder if anyone's actually aware of what a shambles and mockery this industry is?
  • Nothing wrong with it for me, they are regulated by the FCA. Good solution to see if someone is credit worthy. Please enlighten us with a better solution. They report what is provided by the lenders.
  • Thanks Hazzinho, got a link to the electoral roll thread?
  • https://forums.moneysavingexpert.com/....php?t=5023672
    The NI is for fraud prevention and isn't passed on.
  • Thanks. Some hilarious remarks on that thread, lol!
  • How would that work exactly, a signed credit agreement for every person and every account? The lender caused your issue not the CRA'S, they should have reported factual info. Defaults drop off after 6 years by the way so you did well having it on for 7 years. If you feel you're wronged by the CRA'S then go to the FCA which is consumer focused.
  • When you buy a mobile phone, unless it's PAYG, you invariably enter into a contract to pay the supplier. If it's not cancelled, then payments become due and if they're not made a default is issued.
    The majority of complaints from people on here about CRA's are where people have simply stopped paying. Why shouldn't companies report this to the CRA's ? If people took responsibility for their mistakes, it wouldn't come back to bit them on the !!!!. If information is incorrectly reported to the CRA's this can be amended by the lenders and the CRA will remove it.
    On the forum we see a small number of complaints about CRA's, imagine how many people don't have reason to complain.
  • Could there be another misselling scandal in the making with the credit reference agencies? They use fear of fraud, identity theft, low credit score etc. to sell services of questionable value. Experian charges Ј14.99 per month for membership when all most people need is to check their credit report a couple of times a year at a statutory cost of Ј2 each time.
  • It may be impractical to check the accuracy of personal data someone else provides. In recognition of this, the Act says that even if you are holding inaccurate personal data, you will not be considered to have breached the fourth data protection principle as long as:
    you have taken reasonable steps in the circumstances to ensure the accuracy of the information (see the Keeping personal data accurate and up to date (Principle 4) and Retaining personal data (Principle 5) pages of the guide)
    From the ICO. CRA's are NOT doing this at all.
    This, too:
    Data protection FAQs
    The Act provides you with the following rights:
    The right to a subject access request to find out what personal data is held about you.
    The right to prevent processing of personal data
    The right to prevent process for direct marketing
    Your right in relation to automated decision-taking - for e.g. individuals have a right to object to automated decisions made them where there has been no human involvement
    The right to compensation for damage or distress caused by a breach of the Act.
    The right to rectify, block or erase inaccurate data held on file
    The right to ask the Information Commissioner to assess your case if personal data has not been processed in accordance with the Data Protection Act.
    CRA's are "above the law", clearly.
  • What experian say they do https://www.experian.co.uk/assets/res...onguidev16.pdf
    Credit Reference Agencies obtain data from a variety of public and
    financial sources about individuals, for multiple purposes, such as
    helping banks and other companies make decisions about whether to
    lend money to them or not. One of the sources of data is financial
    information from organisations that the data subject already has dealings
    with, for example in relation to an existing loan agreement. Banks
    and other creditors provide regular 'feeds' of data (usually monthly) to
    the Credit Reference Agency.
    • As the data is being provided to the Credit Reference Agency by
    a third party, i.e. the existing loan account information from the data
    subject's bank, the information can be deemed accurate, as long as it
    is recorded correctly as has been provided by the lender.
    • Because credit referencing data can have a significant impact
    on the data subject, i.e. it can affect credit decisions made
    about them. Althought the data has been obtained from a lender,
    the Credit Reference Agency must take reasonable steps to
    ensure its accuracy. It does this, by conducting tests on a sample
    of data received each month - to check for any discrepancies
    or inconsistencies.
    • The Credit Reference Agency ensures that they are keeping data
    from lenders and other sources up to date by obtaining regular
    (usually monthly) updates from its sources.
    An individual obtains a copy of their credit report and notices that
    it shows a mistake. They contact the Credit Reference Agency to notify
    them of the inaccuracy.
    • The Credit Reference Agency takes reasonable steps to ensure
    the accuracy of the data by contacting the third party that
    provided it (for example, a lender).
    • In the meantime, they add a 'dispute notice' to the item of data,
    so that anyone viewing it while the accuracy of the data is being
    challenged will be aware that it may be inaccurate.
    • The individual could also add a 'notice of correction' to explain
    circumstances surrounding information on their credit report,
    for example late payments due to losing their job unexpectedly.
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