The Abuse of the Credit Rating System

A question about : The Abuse of the Credit Rating System

It saddens me to think that the the vast majority of british citizens are at the unscrupulous hands of the Credit Rating Systems.
No doubt if you work at one of these places you'll probably have a fantastic credit rating (now that would make an interesting survey), but for the rest of us, we fall into at least four categories.
Those that pay regularly and never miss a payment (usually earn enough not to care too much)
Those that have fallen on bad times due to employment, ill health, etc. (the list is endless)
Those that the 'system' has completely messed up (the usual nightmare admin mistakes)
& Those that just dont want to pay.

What worries me is those that have a disagreement with a companies dealings with them (often because of bad admin which includes computer errors) are then hounded, harrassed, into paying by the threat of Getting a BAD credit rating.
What amazes me more is that you now have to pay to LOOK at your credit rating!! So these people write stuff about you & you have to pay to see if its true. How did they get away with that?
Whatever is on there (rightly or wrongly) is considered gospel!
Amazing!! if not completely pathetic...and we all let it continue by doing nothing.
So I can't help feeling that there is a conspiracy (well.. what is a forum without a conspiracy theory) between the industries to bully people into paying when they don't owe and that this is an accepted if not encouraged practice.
TBC

Best answers:

• I've never paid for a credit file in my life. If you spend responsibly and live within your means you will never have any trouble with credit ratings. Even if you fall upon hard times through no fault of your own, there is help available to minimise any problems. The trouble is that some people just bury their heads in the sand then cry "not my fault" when the !!!! hits the fan later on. These are sometimes also the people why cry "irresponsible lending"
  There is no conspiracy, and no, i don't work for any credit reference agency.
• Sorry Meer53 that is wrong, I have been trapped by the incompetence of British Gas who were unable to manage my account transfer and kept sending final bills based upon estimated readings! I refused and kept advising of the correct readings, 2 debt collection agencies tried to force me to pay and I advised both that if BG sent the correct bills I would pay. They both gave up and put a mark against me.
  How is that fair or my fault?
• Yeah get all that, they are wrong. But i've been complaining about their incompetence and inability to present a correct bill for 12 months and only once you know about it can you do anything. Nobody asks you if it is correct you only find out once you get declined.
  As such it is a flawed system, they should be required to at least inform the individual before they raise the mark. And only after this option for consultation has been offered should any comment be placed upon a credit record.
• I think as a nation people are a little obsessed with the magic number. Debt essentially is when we want something yet can't afford it but we inherently become disappointed when the system says we aren't good enough to buy now and pay later. Some threads here bear witness to this "I've just completed my DMP and my credit crating is poor. Can I get a loan to improve it" yet these people don't need a loan.
  I think the magic number makes people feel good. My rating is 4/5 yet I have never missed a payment and I use 2% credit that is available. This disappoints me. I don't know why I am not viewed as top credit worthy, yet I have a job spending my salary so either way I shouldn't care.
  It's a very materialistic society we live in.
• British Gas are one of the worst companies to deal with and apply defaults at the drop of a hat.
  When I moved into my current property they tried to make me pay bills I kept receiving that were not mine and not in my name. I even found at a later date that they had applied a default to my file changing the name that was on the bills that weren't mine to mine!
  I know this as I actually had an account with them in my own name that was running at the same time that they applied a fictitious account to my credit file and defaulted it. Why would I have two gas accounts for the same address running simultaneously? And one of them started before I had taken up residence.
  These companies have a real responsibility to ensure the data reported is accurate and it is made simple for those with incorrect information reported on their file to get it removed and accurate information reported. I had a real nightmare of a time being treated like I was trying to get out of paying a debt that they had decided was mine when it wasn't. I do suspect people pay up through fear that they will not be able to get a credit card or more importantly a mortgage that they need in the future because of this. One tiny default can ruin someone's whole future.