Credit check without permission

ZootHornRollo

Hi,

i have spoken to a few loan companies over the last week or so. I have only given one the go-ahead to do a credit search but Welcome Finance, who have not even spoken other than to tell them to stop phoning me, have gone ahead and done a credit check. I gave details to one of their sister companies - YesLoans - in order for them to give me an idea of arp but at no time did i give permission - nor did they ask - to do a credit search and i asked i they did a credit search as part of the process, they said no, not until paperwork was signed and returned.

where do i stand with this? can i get the search removed from my credit file? who do i report them to?

obviiously this restricts the number of applications i can make before it starts to go against me.

richard9991

it may not be acedit check but an id check

feisty1

how do u know they have done a further credit search? also some companies do what is known as soft footprints on the credit file which doesn't lower yr credibility for finance However both these compaies are known to be mavericks, so take care. If yr dealing with these companies it suggests to me yr credit file is affected & u fall into the adverse category....Maybe a respected broker would be yr best bet, as if yr not familiar with loan agreements their might just be something in the contract u miss and could cost u dearly later Have u considered going to a Credit Union, much more customer friendly but depends on amount u want to borrow


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Alfie_E

ZootHornRollo wrote: »

where do i stand with this? can i get the search removed from my credit file? who do i report them to?

obviiously this restricts the number of applications i can make before it starts to go against me.

I’m assuming from what you’ve written that Yes Loans didn’t perform a credit search. That makes me think that Welcome Finance performed the search on behalf of Yes Loans.

The credit reference agencies recognise that a search used to calculate an APR is different from a search used in the process of lending you money. When a company performs a search to work out if they’ll lend to you and at what APR, they should perform what is called a quotation search. When another company performs a credit search on you, they will not see any quotation searches. Therefore, a quotation search cannot affect any future application. You need to check what sort of search Welcome Finance did.

I suspect that Yes Loans should have done a better job of explaining credit searches to you. There would be no point in trying to get a quotation search removed. Only if your credit file says that Welcome Finance did a full credit search should you try to get it removed.

ZootHornRollo

it may very well be an identity check as it has no terms (amount - period) like the one i authorised (lombard).

i only went through the process with Yes because i filled in my details on the Autotrader website thinking they would put me through to a reputable lender. Yes was the first ot call back, i didn't see any harm in trying them so long as they didn't do a credit search - and incedently they have given me the best apr yet (12.9%), lombard gave me 13.9%.

my bank, RBS, is advertising typical apr of 12.9% so these figures can't be that bad, no?

i just put it done to the current financial problems lenders are having.