more than credit checks?

brummybloke

i was trying to get a quote on car insurance with more than, the lady went through a load of questions and then informed me that i would be credit checked? i asked her to repeat this as i would be paying on my debit card for the full amount and again she told me i would be credit checked.

i asked her why i would need credit checking for an insurance policy paid for in full, she could not reply with anything other than " i cant continue with your quote unless you agree to the conditions".

is this normal practice? i could understand it if i was buying it monthly ( well i couldnt but it would be more understandable)

needless to say i didnt continue with the quote.

Astaroth

I would suspect that this is part of their counter fraud process to both validate who you are and secondly to check for any CIFAS loadings - most insurers check this after the policy has been sold directly with CIFAS but the problem with this is that you then already have a certificate of insurance in the post to you and so you could comit fraudulant activity

brummybloke

but credit checking wouldnt verifiy who i am and if i am purchasing a product in full there shouldnt be any need for a credit check. if i were to make a claim then i could understand it but for a quote on car insurance?

their website mentions nothing of this credit check and i got an 'online' quote from them, i just wanted to see what quote i would get if i spoke to a human being.

thanks for your thoughts on it though. i just hope the 80 or 90 different insurance companies who i got online quotes from didnt all credit check me.

YorkshireBoy

brummybloke wrote:

their website mentions nothing of this credit check and i got an 'online' quote from them

Their website suggests you read their privacy policy before submitting any information.

The Privacy Policy states...

The information we collect and how we use it.

As part of the process of providing you with the product or service requested, we may undertake certain checks or exchange information through various databases. For example as part of the process for underwriting general insurance products we may check with a licensed credit-referencing agency and a record of this search will be made.

http://www.morethan.co.uk/Pages/Products/Car/PrivacyPolicy.aspx

They go on to say...

Your Consent

When you submit your information within this web site you consent to the use of that information as set out in this Privacy Policy.

However, there is no need to worry as the searches will be of an 'ID Verification', or 'quotation' type, as they are simply checking your address/electoral roll information and looking to see if you have any CIFAS markers on your file.

These types of searches are not normally visible to 'lenders' searching your file for credit providing purposes. You will, however, be able to see the search on your copy of your credit file.

dunstonh

but credit checking wouldnt verifiy who i am

Yes it does and I use it for all my money laundering verification checks. Experian is the provider I use. Whilst it doesnt actually credit score you, it does check credit records, bank details, electoral roll, telephone number, any warnings you have against you etc.

lisyloo

More than do a check for each quote you get (I have loads of them on my report as I wanted to see what the quote would be by changing various items).

By it's called an "unrecorded enquiry" (on Experian) which means it doesn't show up to other lenders so don't worry about it.

YorkshireBoy

dunstonh wrote:

Yes it does and I use it for all my money laundering verification checks. Experian is the provider I use. Whilst it doesnt actually credit score you, it does check credit records, bank details, electoral roll, telephone number, any warnings you have against you etc.

Hi dunstonh,

Could I ask exactly what level of detail you see with this type of 'money laundering verification check'? For example, does this type of enquiry return...

No of credit cards held
Used credit
Available credit
Payment history

...or just a 'red/green' decision?

Ali-OK

Seems alot of insurance companies do it - I've had the same thing with Royal Sun Alliance.

dunstonh

YorkshireBoy wrote:

Hi dunstonh,

Could I ask exactly what level of detail you see with this type of 'money laundering verification check'? For example, does this type of enquiry return...

No of credit cards held
Used credit
Available credit
Payment history

...or just a 'red/green' decision?

Its a single page response with no details on any credit held. It just confirms how many confirmations of name at that address exist (usually based on credit applications). It does state how long you have been on the electoral roll and if the telephone number matches the surname. Some of the information on applications made in the past is used to match information input on the check. What is matched isnt shown. However, inconsistencies can result in warnings being given (see below).

There is a warning list given with certain codes which will mention potential areas of concern. These are fixed code references though and mention no specifics. It can just be "Date of Birth is inconsistent" or "telephone matched on surname only"

And finally, it is scored out of 100 on a risk basis (i.e. likelihood of it being good enough). Low scores would result in the individual being reported for investigation (which they may never know about).

Very little personal data is shown and it isnt something that should worry anyone. Indeed, the system does pick up identity fraud quite well and I have personally had one check highlight identity fraud in the last 12 months which was reported.

JasonW_2

Ali-OK wrote:

Seems alot of insurance companies do it - I've had the same thing with Royal Sun Alliance.

You are probably aware, but tore than is run by royal sun alliance. I got spooked as well the other day when I called to confirm an online quote and she said I would have 2 credit checks done as I had done a quote online, and needed to do a new quote to take into account 4 yrs company car claim free driving. Seems a bit misleading telling customers its a credit check - likewise I wanted to pay in one installment - but they should be trained a bit better as it seems none of the advisors know they are ID or verification checks and will not affect credit scoring.

J