CRA's Do they ever do credit scoring for lenders etc

never-in-doubt

savagej wrote: »

I think what is meant by Experian's own website in stating we supply software for credit scoring is not that they do the scoring themselves but that they offer a service whereby a company can easily set-up a scorecard in the form it wants it, using the data fed to it by Experian following a search.

Exactly, I kept telling him it was business and not consumer related and that he should re-read his own link but he wouldn't be told!
Thanks for ruining my fun! LOL :beer:

Anyway the leaflet explains this in detail for him now - you know, the proof he demanded!

bert&ernie

I think you guys are confusing who "does the scoring" with who "makes the decision".

A lender can use data, analytics and software from a CRA as a managed service, but the decision is still made against their criteria. They might purchase a score from the CRA, but it is still up to the lender where to set the cut off.

McPete_2

bert&ernie wrote: »

I think you guys are confusing who "does the scoring" with who "makes the decision".

A lender can use data, analytics and software from a CRA as a managed service, but the decision is still made against their criteria. They might purchase a score from the CRA, but it is still up to the lender where to set the cut off.

100% agree. Finally someone that doesn't just go with the crowd!

The CRA's don't make any decisions, but they can supply various consumer scores. I know they provide both risk and level of debt.

Almost_In_The_Black

McPete wrote: »

100% agree. Finally someone that doesn't just go with the crowd!

The CRA's don't make any decisions, but they can supply various consumer scores. I know they provide both risk and level of debt.

And this surely fits the defintion of "credit scoring" and thus is not illegal in any way shape or form. There being a sharp difference between "credit scoring" and "offering credit" which never in doubt doesn't seem to make?

ManAtHome

Going back 10 years or so now, but the agencies certainly used to supply an Accept/Decline/Refer indicator to customers based on a scorecard (eg +10 points for a bank account, -10 for a CCJ etc). Tests and numbers were normally fine tuned by the 'Rocket Scientists' analysing bad debt history, but there was a core set of tests and scores used by most (and customers could argue/ignore the said RS recommendations...).

In general the CRA ran the scorecard and each customer agreed the tests, associated scores, and the Accept/Reject/Refer scores - will leave you to argue the semantics of that!

Brian1966

McPete wrote: »

100% agree. Finally someone that doesn't just go with the crowd!

The CRA's don't make any decisions, but they can supply various consumer scores. I know they provide both risk and level of debt.

The CRA's provide information from your credit report, the lender does the scoring based on information supplied at time of application, income, housing status etc and account information form the credit file.
Experian, Equifax et al can only provide the data that they hold, payment history, public records etc..the lender then decides whether or not to grant the facility. A credit score from a CRA is absolutely pointless as different products..even from the same institution score differently, loans, credit cards etc.
I could walk into a high st bank tomorrow and apply for 3 products,,,bank account, loan and credit card. I may get the loan but be refused the bank account or card.
Nobody and I repeat nobody will ever know the lenders criteria.
CRA's process data...Lenders score individually...ie Barclays may be far more lenient than Llloyds and vice versa

Brian1966

ManAtHome wrote: »

Going back 10 years or so now, but the agencies certainly used to supply an Accept/Decline/Refer indicator to customers based on a scorecard (eg +10 points for a bank account, -10 for a CCJ etc). Tests and numbers were normally fine tuned by the 'Rocket Scientists' analysing bad debt history, but there was a core set of tests and scores used by most (and customers could argue/ignore the said RS recommendations...).

In general the CRA ran the scorecard and each customer agreed the tests, associated scores, and the Accept/Reject/Refer scores - will leave you to argue the semantics of that!

I remember my first application for Car finance and the dealer telling me...10 points for a home phone, 10 points for cheque card etc. Was 23 years ago though but remember him going through each answer with me, manipulating as required

never-in-doubt

bert&ernie wrote: »

I think you guys are confusing who "does the scoring" with who "makes the decision".

A lender can use data, analytics and software from a CRA as a managed service, but the decision is still made against their criteria. They might purchase a score from the CRA, but it is still up to the lender where to set the cut off.

Not at all, i'm perfectly aware of what and how the process works but McPete implied and pretty much stated that CRA's make scoring decisions which they simply do not. The CRA's can have no direct input to the overall score - this would be a direct breach of CCA1974 and as such the lender makes all decisions based on the basic info provided by the CRA.

The CRA can provide score-sheets but again, these are blanket or based to a specific lender but again, they cannot score the individual - they provide the software to the company.

McPete wrote: »

100% agree. Finally someone that doesn't just go with the crowd!

The CRA's don't make any decisions, but they can supply various consumer scores. I know they provide both risk and level of debt.

I'm not going with the crowd, i'm telling you it how it is and if you don't like the truth then may I suggest you take this up with Experian directly because they simply do not provide credit scores to the consumer. FACT.

They can only provide a score-sheet based element specific to each lender which is nothing like saying they can score me individually - they CANNOT do this.

May I remind you of your original quote 'some CRA's offer scoring' - which is utterly untrue as i've maintained. #10

Almost_In_The_Black wrote: »

And this surely fits the defintion of "credit scoring" and thus is not illegal in any way shape or form. There being a sharp difference between "credit scoring" and "offering credit" which never in doubt doesn't seem to make?

Again, it would not be illegal for them to provide blanket scores (i.e. 10pts for this and 5pts for that) but the lender would have to allocate the actual process based on their own assessment. The CRA's can have no direct link to the outcome of any credit scoring decision.

Before you all start to fire the replies, please read up on this or do the honourable thing and ring Experian! I have provided the explanations and proof that CRA's cannot and do not credit score which directly answers the original question appropriately.

Deviating from the issue is getting us nowhere - at the end of the day, the answer to the OP is NO - a CRA cannot credit score you for a lender.

bert&ernie

I'm not going to get into a long winded discssion about this just now because I'm typing this on a phone. Instead, ill let experian explain...

http://www.experian.co.uk/www/pages/what_we_offer/products/delphi_for_new_business.html

I'm sure there will be more rambling responses that attempt to split yet more hairs, but I won't be engaging with these until I'm back behind a full keyboard on Monday. Enjoy!

file_wizzard

never-in-doubt wrote: »

Not at all, i'm perfectly aware of what and how the process works but McPete implied and pretty much stated that CRA's make scoring decisions which they simply do not. The CRA's can have no direct input to the overall score - this would be a direct breach of CCA1974 and as such the lender makes all decisions based on the basic info provided by the CRA.

not a direct challenge, but can you make specific reference to the section of the CCA which applies to this statement?

_never-in-doubt wrote: »

The CRA can provide score-sheets but again, these are blanket or based to a specific lender but again, they cannot score the individual - they provide the software to the company.

This direct from Experian;

We provide a service to some companies where they are simply provided with a monthly score on all of their existing customers, based upon the information held on our records. This is for the purpose of managing the accounts of their existing customers. We can only provide this information to companies where the terms and conditions of the account, as agreed by the account holder, permit the companies concerned to receive a regular check of your credit report as part of the ongoing management of that account.

In these circumstances the lender does not see any specific pieces of information and is simply provided with a scored assessment. Companies use this information to ascertain whether there is likely to have been a significant change in the financial circumstances of their customers and will then manage those individual's accounts accordingly.