Should CRA's/credit files be banned?

mr.ton

I make no bones about it that i have never liked credit reference agencies or credit files, they are horrid things & are a stain on modern Britain in my view...
The set up they have between themselves & the debt industry is corrupt and shoddy to the core.
They all seem to be "best buddies" with each other and 1 is only too willing to scratch the back of the other in return for the same vise versa......
Who governs credit reference agencies exactly?
Who are they answerable to - if anybody??
The sooner they are all done away with the better :mad:

DarkConvict

Yes and No,

I think credit files are required so business can make risk assessments. But i think only 1 credit file should exist for a person, and i should be regulated/controlled/maintained by the FSA/ICO. To ensure its much fairer and the process to fix problems does not take so long.

Fiddlestick

mr.ton wrote: »

I make no bones about it that i have never liked credit reference agencies or credit files, they are horrid things & are a stain on modern Britain in my view...

How then should lenders make decisions on the risk that a borrower poses?

The sooner they are all done away with the better :mad:

What would you replace them with?

mr.ton

Fiddlestick wrote: »

What would you replace them with?

Something far better than what we have now...which is a law unto itself & unaccountable to anyone seemingly :mad:

TrickyDicky

mr.ton wrote: »

Something far better than what we have now...which is a law unto itself & unaccountable to anyone seemingly :mad:

WHat would be "far better"

Without quantifying, you're not arguing you're just having a moan.

davidjwest

If my understanding is right and I'm sure someone will correct me if it's not:

If you go bankrupt it is on your record for 1 year.

If you go onto a DMP it remains for 6 years even if you've paid the debt off.

Can't be right surely?

Fiddlestick

mr.ton wrote: »

Something far better than what we have now...

Such as what?

mr.ton

Shouldnt they be answerable/regulated by government (if they are not already???????)

Tixy

mr.ton wrote: »

Shouldnt they be answerable/regulated by government (if they are not already???????)

As answered before
https://forums.moneysavingexpert.com/discussion/2490735

http://forums.moneysavingexpert.com/showpost.html?p=33675413&postcount=41

the CRAs are regulated by the ICO who in turn are responsible to the Ministry of Justice - ie the government.

Tixy

davidjwest wrote: »

If my understanding is right and I'm sure someone will correct me if it's not:

If you go bankrupt it is on your record for 1 year.

If you go onto a DMP it remains for 6 years even if you've paid the debt off.

Can't be right surely?

Whilst you will only be bankrupt for a year (probably) a note of your bankruptcy will remain on your file for 6years from the date of your bankruptcy.
A DMP does not appear on your credit file as such, what usually appears is a default for each debt dated when you stop paying the 'normal' amount due. This will stay on your credit files for 6years from the date of default. But if you pay the debt off after say 3years the debt would show as defaulted on x date but settled on y date.

michael50

If they were to be banned we have to have a better system in place you can't just ban them.At the moment i dont see no better system so my answer would be no.

If and when i see a better system my answer would more than likely change.