Urgent Help Needed! Searches damage to credit rating!

UK007BullDog

Was it the Halifax? They searched one of my clients nearly a dozen times. Why? Because they had too many different underwriters working on the case and each of them did not check that checks had been done.

It will be hard to get them to admit to anything. But in the end we found out why it happened. They had it removed from the credit file and then all of a sudden the client was OK again to get the mortgage.

Of course the computer got the blame, not the persons sitting behind the computer doing the data input. The last time I checked normal computers can not yet think for themselves and decide to do multiple checks over a period of days.

HelpWhereIcan

One way to approach this may be to remember that there is a credit reference company involved. As part of their contract with the credit reference company, the lender has an obligation to make sure that they do not carry out any unnneccesary searches - there are potential data protection issues if more members of staff than neccesary see a customer's file.

If you advise the reference companies that you believe that the lender has carried out unneccesary searches (and/or more than you authorised) they have a process in place to investigate it with the lender and have some of them removed. (May be problematic as it requires the lender to admit that they were not needed).

One firm I worked for had an experian facility and we were constantly warned about unneccessary searches as the facility could be withdrawn. While they are v unlikely to withdraw the facility of a main lender, the credit refernce company can remove the searches if you can show they were unauthorised/unwarrented.

EdInvestor wrote:

Doesn't it seem rather odd that shopping around for the best deal ( which we are all encouraged to do, especially by the FSA) results in potential damage to one's credit rating?

What can be done to stop this unintended consequence of otherwise virtuous behaviour?

Hate to say it but.... normally best to speak with anadviser as they will have an understanding of lenders' criteria and can make sure that a search is only done when needed and with a lender that is likely to accept your application. But I would say that

Alternatively, make sure that the lender does not carry out any searches without your permission or find out which lenders use a 'soft footprint' (one that can only be seen by you and them) for their decisions in principle. The intermediary market is trying to put pressure on lenders to all introduce soft footprints for all decisions in principles - it may happen yet.

If the lender was the Halifax or another lender that uses soft footprints at decision in principle stage, this could help as although it may afffect their own credit score, it will not affect other lenders as they will not be able to see them. Alternatively, depending on your circumstances, a broker may be able to find a lender who will not use credit scoring to assess your application.

Reebok70

Yes it was the Halifax. Worrying that you guessed.:eek: