your Credit Reference Information
a Loan provider declines to give you a loan
lenders say they do tell applicants, in broad terms why their application
was rejected. A majority of Loan Providers and Credit Card companies
use a system of credit scoring to decide whether you're a good enough
risk. They are in any event bound to tell applicants whether they
sought information from a credit reference agency. Some people have
complained they were 'refused' a loan because of information held
on file by a credit reference agency.
this happens what can you do?
you apply for credit and are turned down, you could contact the
Loan Provider / Credit Card company within 28 days. They are legally
obliged to tell you whether they used a credit reference agency,
and if so, which one. If they did not use an outside agency and
you were turned down, you failed the 'credit scoring' ratings.
has statutory rights in this regard. These statutory rights were
formerly enforced by the Office of Fair Trading (OFT), but a change
in law means that responsibility is passing to the Information Commissioner.
Data Protection Act is fully in force, individuals have the right
to see all information about themselves, whether it is on computer
or not, and to have incorrect records amended.
the 1974 Consumer Credit Act, it is already possible to ensure that
credit-linked information is accurate. Anyone refused credit for
£25,000 or less may write within 28 days to whoever has refused,
asking the reason why and the name of any credit reference agency
consulted. More information on this can be found below.
is not mandatory to give a reason for a credit refusal, the name
and address of any agency used must be supplied within seven working
days. Section 158 of the Act says you can ask the named agency for
a copy of your file. The agency must send a copy of the information
or tell you if it has no file.
Credit Reference Agencies
of the credit reference information held by credit reference agencies
will be correct, but their is a significant amount of information
that is wrong. If you think that the credit reference information
on you is incorrect, you can correct your records by writing to
the credit reference agency asking them to change the incorrect
references or remove the entry altogether. There may be a small
charge for this.
within 28 days, you have not received a reply, or the credit reference
agency disagrees with your request, send within the next 28 days
'a notice of correction'. This notice should be up to 200 words
long and give your side of the story. If the agency agrees to change
your records or add your notice of correction, it will send details
to everyone who's requested information on you in the previous six
months. Should you reach a stalemate with a credit reference agency,
you can write to the Office of Fair Trading.
Useful contact information
can obtain copies of your personal credit file by writing to:
Consumer Help Service,
PO Box 8000,
PO Box 3001,
Make copies of all the correspondance sent and if you need to phone
make sure you note the time the names of persons you speak to. This
may prove useful if the dispute prevails.
Here at Online Consumer Information services ( OCIS ) we also
provide details on a large number of consumer watch dogs and UK
Government Department who may also provide additional information
or help. In most cases we also provide contact details and telephone
numbers for your convenience.
look at How
does a Credit Rating work?
provide general financial information, we urge you to consult an
Financial Adviser ( IFA )
before making any important decisions about your finances.