Credit Agency

A Credit Agency holds information on most adults in the UK. This helps lenders to assess the risk of lending to particular people, and reduce the risk of fraud, by allowing them to look at information held in individual credit files. This information falls into three main categories:


Public record information - the UK electoral roll (used for checking names and addresses), county court judgements (CCJs) and Scottish decrees (awarded against people who have defaulted on debts), and records of bankruptcies, individual voluntary arrangements and administration or repossession orders are held by each credit agency.


Credit account information - lenders share information about borrowers by registering it with the a credit agency. This can show whether people have kept their payments up-to-date in the past. It also lets them check whether people have loans outstanding with other lenders and, if so, whether they have kept the payments up to date.


Search information - the file also records credit checks carried out by lenders and a large number of applications made over a short period of time. This could be seen as an indication of over-commitment, or even fraud.


When you apply for a loan, credit card, bank account or mortgage, the chances are that the company involved will run a check on you with a credit agency. These agencies check the electoral register to confirm that people live where they say they do, and report on bad debts, bankruptcies and perhaps on how well people keep up repayments of existing loans. If any of the information about you is wrong, it could be extremely damaging. The Data Protection Act 1998 allows you to see this information.


If you are about to apply for a mortgage or other major loan it may be worth checking in advance to see what information a credit agency may hold on you. Correcting any errors in advance could help you avoid problems at a later stage, when you may not be able to get things put right in time.

When you apply to a credit agency, you should state that your request is limited to personal information relating to your financial standing. The data controller then has to reply within seven working days.


Under the Consumer Credit Act 1974 you are entitled to have incorrect information corrected. If the file contains mistakes, the agency must correct them and tell you what it has done within 28 days. If it refuses, or you are not satisfied with the amendment, you can send it a note of correction of up to 200 words, which it must add to your file and send out whenever information about you is supplied in the future.


If you are having problems obtaining credit as a result of the credit records of, for example, other family members living at the same address as you, you can apply to have your credit records "disassociated" from theirs. You need only make such an application to one of the main credit reference agencies. That agency will also notify the others.


If you have problems obtaining credit, it may be useful for you to read "No Credit"
published by the Information Commissioner.


The three main credit agency firms in the United Kingdom are:


Experian Ltd
Consumer Help Service
PO Box 800
Nottingham
NG1 5GX
http://www.experian.com


Equifax plc
Credit File Advice Service
PO Box 3001
Glasgow
G81 2DT
http://www.equifax.com


Call Credit plc
Consumer Services Team
PO Box 491
LEEDS
LS1 5XX