Your data is becoming less transparent

Posted in 'Credit Reports' by Richard Catlin

26 March 2009

If you are declined credit, it’s of little comfort that over the past 5 years your ability to see all the data used when you are being assessed for credit has been considerably restricted.

In January, with the consent of the Information Commissioner, fraud data on credit reports largely became invisible to consumers. You are now able to see only two types of CIFAS warnings – Category 0 (Protective Registration) and Category 2 (Victim of impersonation). Previously, you were able to see details of all suspected fraud warnings lodged, including suspected fraudulent applications made by anyone at your address.

This follows an earlier and far more significant move instigated by the Information Commissioner which resulted in the removal of ‘third party data’ from credit reports seen by consumers. Since November 2004 the information shown to consumers has been restricted to applicant data only, together with the name of any ‘associate’ derived from joint applications. Lenders, in contrast, are able to see the financial data relating to any of your associates, alongside your own data. Prior to November 2004 you were able to see all data too.

The underlying motive in both instances has been to remove your ability to see suspected frauds and the financial fortunes in detail of those persons who are ‘associated’ with you, and vice versa.

Now, finding out why you have been declined credit becomes much more difficult. Only the lender knows the reason for the decline. There is no legal obligation to tell you, unless the lender has signed up to the principles set out in the Guide to Credit Scoring. This is a voluntary code endorsed by the OFT, which seeks that the lender must tell you that credit scoring has been used in assessing you, and must provide a clear explanation of the principal reason why you have been declined.

Our Unlimited Access services provide you with the ability to keep track of the extent of data reported on your credit file, to spot and correct errors, and to see how changes such as this affect your credit score over time. If you remain in the dark about being declined credit, a Freephone call to one of our professionally qualified credit analysts can help to find the underlying reason.