Letting agency "credit checks" and experian scores

A question about : Letting agency "credit checks" and experian scores

Having become debt free it's great. I can see all my money going into savings and I can really move on with my life. I'm even able to start to make some strides towards saving for a mortgage now.

But I'm deeply concerned that I won't be able to move because of the problems which will remain on my credit file for years.

Why?

Agencies, despite not reporting to my credit file, are able to nonetheless make use of credit checks from companies, such as experian, which provide them with information. Much of this is public information which is fair enough. Nothing I have against me that is in the public domain is in anyway detrimental.

Yet appended to this information (none of which is really read by the agencies anyway) is one thing that matters it seems.

A disclosure of my private information to a lettings agency about my credit file in the form of either a score, a risk rating, or in some cases a flat out yes/no answer.

Surely this is on dubious ground legally? Has anyone gone to then information commissioner about it? They aren't lending us money or reporting to our file yet they are allowed some kind of backdoor circumvention into the information which lenders see through an insight in the form of an indicator of some kind.

The fact that they don't disclose the exact details is in my view immaterial. If they aren't reporting or lending cold hard credit then they should be relying on public information and references from previous landlords (I have never -ever- paid my rent late or missed a payment or skipped out on a landlord).

Very interested to hear what others who have worked hard to end their debts and then struggled for things like this. I'm not talking about borrowing money here, I'm talking about the ability to move. Credit reference agencies are denying this of me by providing details of my personal information to lettings agencies through the back door.

I wonder if anyone has tested this against article 8 of the european convention on human rights.

Your thoughts welcome.

Best answers:

• I believe (Please someone correct me if I'm wrong) that letting agents only see the "public information" on your report. CCJs and Bankruptcies - I don't think they see late markers or defaults.
• Hmm, I wonder when that changed - I'm sure that wasn't always the case. Or maybe it's just certain agencies.
  Anyway, I wouldn't be so pessimistic - be upfront with the agent and ask them to discuss with your potential landlord if/when you've chosen one. My OH and I moved into a new rented place with two large recent (at the time) CCJs on his account.
  Your new potential landlord will have access to your rent history, as that is one question they will almost certainly ask as part of your reference checks.
• Hmm, I'm not sure they do see the detailed score information at least not all agencies, or perhaps the only care about CCJs and bankruptcy. Both myself and my OH still have trashed credit scores due to past (now fully paid off) debt however were able to get a new rental contract with no problems or questions from an agency. At the moment we're renting privately which is loads better, no crappy agency fees!!
• They shouldn't give access to credit account data. i.e. details of default, payment history etc.
  CCJs etc however are public record information, so will show.
  I think they may possibly show 'aggregated data'. For example, that defaults exist for a given period, but even that I'm a bit dubious over. They certainly cannot see specific details.
  You have to remember that link is a sales blurb. They try to make you think you will get more for your money on the report that you actually will. The sample reports I've seen from such agencies are disappointing to say the least.
• I know that they can't see specific details.
  However, using those specific details, they are given a score about the tenant.
  That's the bit I have a problem with. The score is based on information that they are simply not allowed to see and is not publicly available. (At least that is my understanding of the matter).
  The regulations surrounding who can see your credit file exist for a reason. Through use of a bit of a fudge whereby the details aren't disclosed but a risk indicator taking into account those very details is disclosed makes me wonder if this might be a bit too close to the wire.
  The lettings agencies (to my understanding) are recieving the this information, albeit indirectly and represented as a score rather than broken down in detail, as part of a service when it is not within their (the ratings agencies) gift to divulge.
• As a Letting Agent myself (don't hate me!) I can only speak for my particular company but whilst we apply for a credit reference we only see public record information. We basically see a score, confirm identity and see any CCJ's and if they're settled or not. I have to stress though that this is Not the only factor in renting a property to a client. We always rely more on previous landlord information, employment reference etc. We are working on behalf of a landlord (in our case they're not our properties) and we have to be able to demonstrate we've done all we can to protect the landlord's investment while remaining fair to our tenants. As someone with a less than perfect score myself I absolutely understand that a credit score isn't the be all and end all and we ALWAYS look at other options, its very rare for us to turn away a tenant and certainly not on a credit score alone. We don't all operate the same!
• Tia - Thank you for your comment, but I have to point out that I'm not whinging about the agencies themselves as such. They are buying a service which is provided and of course they (you!) will want to see as much as possible.
  My issue is that the score which is listed is based on non-public information. You are recieving information from the credit ratings agencies to which you have no legal entitlement. Not saying that's your fault, I believe it to be the fault of the agencies for deliberately leaking this information through the backdoor etc.
  Any score you recieve should only be based on information that you, as a lettings agency, are entitled to view. Highly accurate scores based on lending, defaults, etc should be off limits for you, and I think we both know that while you don't see the details, you DO see these accurate scores.
  This in my view is a matter for the regulatory bodies of the reference agencies and I plan to take it up with them.
• https://www.scoronline.co.uk/
  Is the industry body that oversees and sets down principles on who can access what level of data.
  If you want to give yourself a headache, then you can try reading the "principle of reciprocity" document available on that site.
• Thanks Fermi, very helpful, I'll print take a look at how they operate and compare it with some of the legislation. I am starting to form a view on this already, but happy to be enlightened.
  I am not unfamiliar with documents of this nature sadly so I'll plough on through!
• Heh,
  "Data will be shared on the principle that subscribers receive the same credit performance level data that they contribute, and should contribute all such data available "
  Their own document rather succinctly makes my point.
• I seem to recall that there are some limited exceptions to that principle buried somewhere in the document. Don't ask me what or where though.
• I suspect they are talking about what they refer to as an aggregated risk score. However, just because they've mashed all the private information about lending etc up and blended it into a score which they then add other info to and called it a 'risk score' or whatever doesn't mean that they should be able to make use of elements of that algorithm to people who don't share and have no legal right to that information.
  Getting through it now, but I think I've read enough from their own voluntary industry steering committee, time to start on the legislation soon as I'm not at all convinced this is really allowed.
  I can see how they're trying to cover it by including geostatistical analysis and suchlike which is all public. But at the core of it the truth remains that if you have defaults, you will score very poorly. It therefore becomes indicative to those who are not permitted to see that information that you have defaults which in turn means that general 'backround radiation' about your private financial details is being leaked to an unacceptable extent.
  I imagine this is an ICO thing at this point.. not sure though.
• In the info provided by the letting agency who will be letting a property for me states
  We can offer a FULL credit history check including:
  Existing credit agreements, including arrears
  County Court Judgment (CCJ) search
  Bankruptcy & IVA data search
  Linked address checks
  Electoral roll presence
  Credit Score
  That to me, if they can see existing credit agreements and see arrears then its quite a comprehensive check. They did say as one of the "selling points" that they gain permission from the prospective tenant to conduct a much more through check than is usual?
• Landlords and letting agents should not have access to credit account records, or scores derived from credit account records. The risk scores we provide to landlords are based on public data.
  brians daughter - if you'd like to share further details of the information provided by the letting agent you quote (including their name) we'll happily look into it: customerrelations@uk.experian.com
  Thanks
  James Jones
• That's right.
  James
• Thanks very much for this. If I come across any that fail me, I'll send them your way for questioning as all my public information is great!