banks secret blacklist

Chrysalis

I asked my bank if I am blacklisted since I had checked my credit record which was clean but I had trouble getting a basic BT phoneline and cannot get any credit whatsoever and since they was the only ones who have ever lent me money I would like to know if this is the case.

they replied I am blacklisted by them (loan in past had beeen in arrears) and other banks and institutes can access the ifnormation but it wasnt available for me to see.

how long has this private blacklisting been going on for because I am not impressed banks can share private info in this manner.

chirpy007

How many credit reference agencies did you use. l believe you have to use 2 to get a true reading, what appears on one wont always appear on the other.

I used 2 and they had different info. l have never heard of banks having a secret list just the normal checks. How long ago was the default from, have you paid as it can be removed after 5 or 6 years.

surfcat

But this sharing of info is what the customers wanted right? After all those posts saying, ¨but why did they let me (who earns xx per year) take out a massive loan for yy?"

The banks responded by sharing information, to prevent bad debt.

Chrysalis

bad debt happens with these lists, ie. people with large debts allowed to take on more.

the event was probably 3 years ago now. I checked 3 credit agencies.

what concerns me is we in the future will have a lot of social priviledges based on a centralised credit rating that is computer controlled and can be abused and is unfair.

I am seeing more and more decisions just decided by computers only.

Speak to someone on the phone "oh sorry the computer says no there is nothing I can do"

Woby_Tide

so you want banks to share info unless it's about your own bad debts in the past?

Chrysalis

no I think their needs to be a lot less emphasis on credit rating for a start.

Why credit check for a phone line? just cap the bill to a low amount until the customer has a payment history with the phone company.

For other things such as applying for a loan or credit card simply give them your emplyment details etc. and they verify that and do a risk assessment, if they wish to see your bank statements then they ask "you" for previox X months bank statements to see your financial capabilties not some 3rd party.

Advantages of this.

Decision made by human.
No sharing of data behind your back and data is also know to be accurate since you supply it not a 3rd party.
Ends bad mark against address affecting decisions.
If you refuse to show bank statements or dont have a bank account then they make their decision without it but probably refusing credit.

Disadvantages.

Its slower and needs more man hours to process claims, so less efficient.
Some may argue humans arent as reliable as computers and the current credit system.

oldwiring

What is credit scoring but a formulated means of risk assessment? I do thend somewhat to take on board Chrysalis' point about human involvement, but the demand for volume and containment of costs (managers do not come cheap) has meant the system became God.

IMO a manager interviewing a customer, could pick up on things not in the application quite easily and I suspect that some, who are crying out now, would not be doing so, because the bank manager had said, 'no'.

Chrysalis

correct, I would feel less bad if a one to one interview led to a no decision since managers eg. would normally explain why and you know your case has been looked at via in individual basis rather then a rule applied to the masses.

grumbler

Chrysalis wrote:

no I think their needs to be a lot less emphasis on credit rating for a start.
...simply give them your emplyment details etc. and they verify that and do a risk assessment, if they wish to see your bank statements then they ask "you" for previox X months bank statements to see your financial capabilties not some 3rd party. ... Advantages of this....

So you can borrow from 10 companies, fail to pay back and keep borrowing from other companies. Really a good advantage for you (only) ...

Ends bad mark against address affecting decisions.

There is no such a thing as 'bad mark against address'. And there is no such a thing as 'blacklist' ...

they replied I am blacklisted by them (loan in past had beeen in arrears) and other banks and institutes can access the ifnormation but it wasnt available for me to see.

I think this information was incorrect. A lot of incompetent people work everywhere including banks. Do you have this in writing?

Chrysalis

yes its in writing and on a recorded phonecall. Which I have already shown to a legal advisor, my contract with my bank which I kept from 9 years ago doesnt give them the right to pass on my financial details so I am now been told I have a case against them.

Regarding people borrowing from 10 difference companies, please tlel me how the current system protects from that.

Current system from what I see.

you either cant get any credit.
or you can get loads.

Also a fact for you their is more bad credit now then there was 10/20 years ago. Doesnt appear to be working well from where I sit. All it achieves is providing larger amount of credit to a smaller amount of people.

CTT_2

At least with credit scoring systems they are impartial. I remember going to lloyds about 26 years ago and asking for a temp overdraft of 150 pounds stg.
I paid it back and asked for the amount to be made available to me on a more permanent basis. The under manager said if it was up to him there was no problem but the manager does not like you. How personal is that!
This post is dedicated to Mr Jackson, manager of the now closed Oxford Road branch, Reading who was transferred to Lloyds in Henley on Thames. God help them.