Credit Reference Agencies

In Britain there are a small number of specialist reference agencies. These hold records on a large percentage of the population. We found a large proportion of the information held to be inaccurate, and in other cases listing or threatening to list a person was used as a means of blackmailing an individual involved in a dispute. We found it just about impossible for a person to get the record put right.

A persons credit status, may effect there ability to open a bank account rent a home, get a mortgage, or be involved in credit transactions. these restrictions can cause people to not be able to gain employment (bank account and ability to move is often necessary), and in some cases went on to cause family breakups.

Those who use the services of agencies or play in credit scoring have a poor idea as to the relevance of the information, and that it is as often wrong as right.

Action is needed urgently to correct this.

Credit Scoring.

Not a science, more a style of witchcraft is how we could best describe credit scoring. Credit scoring involves taking factors about your life, marital status, type of employment, style and size of home, and financial information adding a spell from credit reference agencies, often nothing more scientific than adding up how many references have been obtained on you, too many and your score decreases. With this magic they claim to see in the crystal ball how likely you would be to default on a debt, to run into financial difficulty or fail to pay your rent.

Make it sound scientific, claim to be an expert in it and a large fee can be charged, often charged on to their victim, which if you are not careful will be you.

If you recognize that credit scoring is being used, often spotted by a range of irrelevant questions being asked, as well as large application fee. The best course is to save your money and your credit rating, for if you fail a credit score, yes the fact will be recorded on your credit record.

You will find that those that peddle this, are able to persuade otherwise quite rational people that it is their best interest and can be relied upon. Any protest by the victim will look as if you have something to hide.

There are few practices that are more clearly wrong than using credit scoring.

Credit applications and renting property.

Often letting agencies charge anything from £80 to £200 for processing an application. We feel that this is completely unnecessary where a tenant is able to show a record of their rent being paid for some time. In these case we would suggest that proof of the rent being paid on time plus the managing agent looking after the property they are currently in should be all that is needed. We do not see any fee is justified in these cases. The letting agent getting paid as a percentage of rental income by the landlord.

Where a person is looking for their first private rented accommodation and do not have the necessary credit reference information we would like to see an insurance offered to cover the landlords risk. By maintaining a register of rent defaulters insurers should be able to eliminate major risk, making it a very cheap form of insurance.

Bank accounts.

We would like to see every citizen have the right to bank account unless they can be shown not to be able to manage one. We are not suggesting to start with that banks have to give credit, guarantee cards or other services but a fair deal; document should show on what basis each extra service can be obtained. It should not depend on the size of the balance or income but relate to the responsible way that they manage their account.

At one time it was very easy in Britain to open an account but over reaction to stop money laundering and similar has given the banks the excuse to pick the clients they want. It may have escaped the banks and authorities but money launderers are not short of funds and can open accounts anywhere very easy!!! added to which criminals will get around such action while honest citizens are harmed.

Post script - the UK government working with the Bank of Scotland have produced a type of account anyone can get, when they get employment so that those without bank accounts are not excluded. Unfortunately no publicity has been given to this.