MSE News: MPs call for probe into 'unfair' credit applications

This is the discussion thread for the following MSE News Story:

"MPs are urging watchdogs to investigate the fairness of the credit application market, amid concerns consumers are being penalised for searching for the best deals ..."


Comments

  • Cash_Flow
    Cash_Flow Posts: 1,103 Forumite
    I think this is long overdue and I do hope the OFT puts up a better fight than they did for the bank charges case.
  • There are many things wrong with this country that are have not been addressed over many years by MP's too busy lining their own nests through expenses and feigning doing a great job in the interests of the public who out them their... anyway... This is one issue that deserves to be properly resolved so WELL DONE !!! getting a situation where the "rate" is pinned on the loan after application is patently unfair ... for many other reasons like ... it ruins your credit rating to apply for several loans to get the bast rate, so I like the approach used by MSE to get a handle on the problem ...

    Soooooo how about a campaign and enquiry to stop the ridiculous practise of insurance companies to make charges of £10 to £35 a pop per ammendment on a policy we pay them for to administer !!!!!!!! outrageous !!!!!! they already have weaselled on a nice bung by charging for staged payments, when a few years ago that practice didnt exist, most of em get a 50% kick back on stupid call costs on premium rate numbers ... these people would put their grannies on the game if it would up their margins ... does it REALLY COST £35 to change the data field on a database and print and send your replacement docs??? then they do it again for changing car. some of their practices border on criminal - like not descaling your charges for a lower group car , vast yearly increases hoping your too lazy to change... anyway - a few things GET MY GOAT , great to see at least one is being tackled. GO MSE !!!!!!!!!!!!!:T



    MSE_Guy wrote: »
    This is the discussion thread for the following MSE News Story:

    "MPs are urging watchdogs to investigate the fairness of the credit application market, amid concerns consumers are being penalised for searching for the best deals ..."


  • 1connect wrote: »
    Soooooo how about a campaign and enquiry to stop the ridiculous practise of insurance companies to make charges of £10 to £35 a pop per ammendment on a policy we pay them for to administer !!!!!!!! outrageous !!!!!!

    They have to pay for the call centre building, staff wages, NI, paper, telephone systems, heating, lighting etc. If there were no admin fee there would be less staff, or worse still more outsourcing, and then people would complain even more...
  • I think thanks are due from all of us on this great piece of campaigning. One extra I'd like to see the OFT look at is the possibility of asking the credit scorers to publish the criteria by which they produce the credit score, on a website with free and simple access. I think the general public have little or no idea about which criteria are used and how important each one is in affecting the score. For example - I would have no idea if forgetting to repay a credit card a couple of times would affect my score as much as, say, a settled CCJ from the past. This stuff should be public so people know where they stand.

    This certainly isn't an industry subject to 'normal market forces', so I hope they deconstruct and reconstruct it with the consumer in mind.
  • PROLIANT
    PROLIANT Posts: 6,396 Forumite
    Combo Breaker First Post
    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. ;)
    Since when has the world of computer software design been about what people want? This is a simple question of evolution. The day is quickly coming when every knee will bow down to a silicon fist, and you will all beg your binary gods for mercy.
  • Bigal_2
    Bigal_2 Posts: 17 Forumite
    hurworth wrote: »
    I think thanks are due from all of us on this great piece of campaigning. One extra I'd like to see the OFT look at is the possibility of asking the credit scorers to publish the criteria by which they produce the credit score, on a website with free and simple access. I think the general public have little or no idea about which criteria are used and how important each one is in affecting the score. For example - I would have no idea if forgetting to repay a credit card a couple of times would affect my score as much as, say, a settled CCJ from the past. This stuff should be public so people know where they stand.

    This certainly isn't an industry subject to 'normal market forces', so I hope they deconstruct and reconstruct it with the consumer in mind.

    I fully agree. I wanted to check my credit file with Experian and logged on using their "free month". When I spotted errors and reported them, I got a reply saying it would take about 10 days for them to contact the banks concerned, who in turn took ages to reply. Whilst waiting, the "free" month ran out and I was billed 5 pounds 99 pence for the first monthly fee. What a scam! If they keep computerised records, you should be able to check your own file for free.
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