Treasury Committee launches inquiry into Credit Searches in conjunction with MSE

michaels

Warning - it appears mbna (all cards not just mbna branded) are turning down applicants who have benefited from too many special rate promotions from mbna cards (inc virgin, play etc) in the past - fair enough except they don't warn you before applying for a product and still do a credit search...:eek:

ElkyElky

michaels wrote: »

Warning - it appears mbna (all cards not just mbna branded) are turning down applicants who have benefited from too many special rate promotions from mbna cards (inc virgin, play etc) in the past - fair enough except they don't warn you before applying for a product and still do a credit search...:eek:

That doesn't surprise me. There are a lot of people who just use the card for the offers, then cancel once they are finished. How are they supposed to make money if people do that.

PROLIANT

I have said it before and I will say it again;
The resolution is not complicated nor is the implementation of the Software...it already exists.

1. Apply for a Loan/Card
2. Credit Check is carried out only leaving a soft search i.e. no there lender can se it.
3. Decision either yes or no/referral.
4. If you are accepted and you agree the T&C's, APR et al....soft search converted to full credit search.
5. If you are not happy with it....try else where.

This way, those of us who have a clean credit record will not be penalized for shopping around for the best deals, Experian and Equifax have the software API's and online services to cope with this type of "soft searching", the lender see's the same set of data be it a full search or a soft search.

So when you have an individual who is racking up debt, the lender can see that any hard search means the person has just committed to another credit line and can manage risk that way.

Simple.

Ritchie74

BenL wrote: »

In addition, I understand that in order for the words "typical" to be used in the adverts 66% off approved applicants must receive this rate.

Who checks this? and is it done monthly?

I can't speak for all lenders, however where I work, app reports detailing APR split by product are monitored monthly. If any rolling-3-months shows the 66:34 proportion is out of kilter, a change is made to the scorecard (score cut off change) accordingly.
FSA can - and do - audit us at any time and this is indeed a rule they require proof of us adhering to.

Rich

Campbell1_2

Was this ever resolved or is there a solution?

I recently fell in to this trap.

I was offered a loan from Nationwide at 7.3%. Due to the christmas holiday periods and my agreement being delayed in the Royal Mail backlog that resulted, the loan offer of 28 days expired, although Nationwide invited me to apply again. I did so, but the rate jumped to 9.9% due to my earlier "search".

As this was uncompetitive, I went to Santander at 7.3%, only to be offered 14.9%. Because they have also done a "search" on my credit file, I doubt anybody will offer me the typical 7.3%.

Nationwide will not honour 7.3%, nor 9.9%, but now 14%, all because of two "searches" on my credit file :mad:

CpdButWhy

Campbell1 wrote: »

Was this ever resolved or is there a solution?

I recently fell in to this trap.

I was offered a loan from Nationwide at 7.3%. Due to the christmas holiday periods and my agreement being delayed in the Royal Mail backlog that resulted, the loan offer of 28 days expired, although Nationwide invited me to apply again. I did so, but the rate jumped to 9.9% due to my earlier "search".

As this was uncompetitive, I went to Santander at 7.3%, only to be offered 14.9%. Because they have also done a "search" on my credit file, I doubt anybody will offer me the typical 7.3%.

Nationwide will not honour 7.3%, nor 9.9%, but now 14%, all because of two "searches" on my credit file :mad:

Yeah, Nationwide particularly likes to mess with you because of their own searches being there on my account.

inkslinger

I cant agree enough, only people who have been through the very costly mistake of shopping around learn from it.

Years ago before the internet I did it many times, only years later understanding the damage it was doing and why offers were so poor.

I see no reason why soft (table 2) searches cannot be done, offer of the loan made then a full search complete before signing been the correct process.

Its akin to buying a pair of jeans without trying them on.

cariad123

Has anyone ordered a balloon from Balloon Box Direct? I ordered a balloon only to be told that it had not been delivered. I am finding it impossible to contact them, either by phone or email. Would appreciate it if anyone could tell me if they are a genuine company.

izools

cariad123 wrote: »

Has anyone ordered a balloon from Balloon Box Direct? I ordered a balloon only to be told that it had not been delivered. I am finding it impossible to contact them, either by phone or email. Would appreciate it if anyone could tell me if they are a genuine company.

What has this got to do with credit searches?