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MSE News: Rent payments on credit files 'should help social housing tenants'

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Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
edited 11 November 2013 at 10:56AM in House buying, renting & selling
"A new scheme to put rent payments on credit files will start next year, MoneySavingExpert.com understands ..."
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Rent payments on credit files 'should help tenants'

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  • Road_Hog
    Road_Hog Posts: 2,749 Forumite
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    I can't see this helping tenants. Just another industry wheeze to provide a profit centre.
  • ValHaller
    ValHaller Posts: 5,212 Forumite
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    I seem to remember that this was put a stop to a while back

    from TFA
    Tenants living in rented homes would have better access to bank accounts and credit if information about rent payments was added to their credit rating, says Experian.

    Really this is Experian grandstanding and trying to increase their market. It is not necessarily an entirely good thing.
    You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'
  • Road_Hog
    Road_Hog Posts: 2,749 Forumite
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    ValHaller wrote: »
    I seem to remember that this was put a stop to a while back

    from TFA



    Really this is Experian grandstanding and trying to increase their market. It is not necessarily an entirely good thing.

    Yep, all about increasing business and profits. Personally I think companies already get too much information about people. If you apply for a job these days, the criminal record section wants to know about motoring offences.

    What on earth has a 3 pointer got to do with my ability to do the job. I'm so glad I'm self employed these days.
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
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    And in one fell swoop the tenant's legal right to withhold rent if a landlord refuses to do repairs disappears entirely.
  • dodger1
    dodger1 Posts: 4,579 Forumite
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    ruggedtoast wrote: »
    And in one fell swoop the tenant's legal right to withhold rent if a landlord refuses to do repairs disappears entirely.

    According to the CAB there is no legal right,

    http://www.adviceguide.org.uk/england/housing_e/housing_renting_a_home_e/getting_repairs_done_while_renting.htm
    It's someone else's fault.
  • amiehall
    amiehall Posts: 1,363 Forumite
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    ruggedtoast wrote: »
    And in one fell swoop the tenant's legal right to withhold rent if a landlord refuses to do repairs disappears entirely.

    This right doesn't exist. If you withhold rent, you could find yourself with a CCJ.

    I would be slightly concerned about this in general though, simply because I have had some pretty unprofessional landlords in the past. I can imagine adding a battle to have unjust statements removed from the credit record to the fight to have your full deposit returned...
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  • chanz4
    chanz4 Posts: 10,901 Forumite
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    I wouldn't trust a landlord to report, oh I don't like you missed payment. Also Experian believe the lender over the persons whos file it is even with proof so cant see it been a good thing.

    Experian like it for one reason, money from the landlords to report to them.
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • rpc
    rpc Posts: 2,353 Forumite
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    chanz4 wrote: »
    I wouldn't trust a landlord to report, oh I don't like you missed payment. Also Experian believe the lender over the persons whos file it is even with proof so cant see it been a good thing

    "Your rent has just gone up (with no proper process or maybe even in the fixed term). If you don't pay it, I'll report you."

    If landlords (social and private) are to be permitted to report to credit agencies then surely they should be regulated as a credit provider and have routes such as the FOS open for adjudication?

    How does this tie in with HB? "The state successfully paid X's rent for them for Y years."
  • JuicyJesus
    JuicyJesus Posts: 3,830 Forumite
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    A bit of ado about nothing. Under the principles of reciprocity, lenders (and others) can only see data they elect to feed back into the system from their own customers. So those who do not intend update rent payment history with CRAs will not be able to see peoples' payment histories themselves. As it is most tenant searches now just look for CCJs, which are public information and more relevant to tenancy checks than anything else. As far as I am aware, there is also a fee for a company to join the credit reporting reciprocal system, which would put off all but the largest estate agents from joining.

    The payment history will probably not be therefore used or supplied by many. I don't personally see the issue on principle: rent is a priority expenditure, and payment history is reported on most other similar agreements which are far less important. If someone fails to meet their #1 most important obligation then that is very relevant information for a person's credit standing.
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  • ahxcjb
    ahxcjb Posts: 209 Forumite
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    Road_Hog wrote: »
    Yep, all about increasing business and profits. Personally I think companies already get too much information about people. If you apply for a job these days, the criminal record section wants to know about motoring offences.

    That is simply not true. An employer has no right to ask you to declare non-recordable offences (ie, the vast majority of motoring offences) as they are immediately 'spent' under the ROA 1974.

    However, if you've been convicted of a recordable motoring offence (drink driving, dangerous driving, careless driving etc) then there is no question that these should and need to be declared. These are serious offences, and shouldn't be regarded as 'just' driving offences.

    I hope that clarifies.
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