MSE News: Guest Comment - Why should we pay for OUR credit reports?

MothballsWallet

Aren't CallCredit the ones who're working with Adaptive Affinity (see elsewhere on MSE for threads about schemes run by them) to provide a credit score service?

SnowMan

Experian_company_representative wrote: »

There has been a link to order a £2 statutory credit report on the Experian website homepage since we launched our website - we have never tried to hide it.

What's rarely mentioned is that the cost of providing one-off credit reports to consumers is significantly more than £2 fee set by law, so it is already heavily subsidised.

The Noddle pilot is certainly interesting and I was probably one of the first to register. As Tom says, innovation is good for consumers. I am intrigued to see what the marketing element of the proposition, which is how the free reports will be funded, will look like and what controls will be put in place.

James Jones

You ARE trying to hide the £2 report :rotfl:

When you go to the experian website there is a huge box covering the free trial which automatically leads into the very expensive paid for service. On my screen resolution (and probably most others) you have to scroll down a page to a section consumer advice and there in small print is the comment that a £2 statutory report is available. However there is no link to that report from there and if you click on consumer advice next to that (which is the obvious link to click on) it takes you to a page advertising the 30 day trial. When children play hide and seek the person hiding is always found eventually unless the seeker gets bored. The fact that they were eventually found doesn't mean that they weren't hiding. And someone who is not playing the game and doesn't know that someone is hiding will probably not find the person. Experian are hiding the £2 report and only those consumers who know it is there in advance and perservere will find it.

The right for someone to access their credit report without paying should be a basic right.

Your implication that you are somehow doing consumers a favour by 'subsidising' a report for £2 is comical. Your business model is based on making money from the credit check services you provide to lenders amongst other things. With that opportunity for you to make money from the information on us the consumers, comes responsibilities in providing free access to consumers to their own information.

If someone is turned down for credit unexpectedly they will currently pay to see their credit report. If there is an error they will ask for it to be corrected. The consumer is paying out to you to check that the information you hold is correct and to correct it. Most sensible people can see that is wrong.

People don't explicitly choose for experian to hold data on them. It is an indirect consequence of them having other financial products which lead to information being passed onto experian. So why should consumers pay to see that information and correct information that is wrong?

I think most of us are wary of the noddle (callcredit) free option and what they will get 'in return' for the free access to reports, and to what uses our data will be put.

However Noddle have recognised that consumers should have free access to their credit reports (and the data held on them) and they should be applauded for that. I think it is a constructive move for taking the industry forward.

I think the policy issue for our elected representatives to decide with input from us the consumers is what is a system that is fair to consumers but allows commmercial companies such as experian and callcredit doing credit checks to be commercially viable.

For me the access for consumers to free credit reports is a must, and there should also be a requirement for the free credit report to be given at lease as much prominence on credit agency websites as any un-necessary and expensive credit report subscription.

Personally I would like to see the paid for credit report service to consumers to be banned even if there is a free option also.

These are like asking for a fee for people to apply for a EHIC (European health insurance card) when an EHIC card can be obtained for free via the directgov or NHS websites. The OFT are trying to stop these paid for EHIC websites as they are to consumer detriment and not offering a service of any worth. Are the expensive credit report services (when a £2 check is currently available and hopefully free access soon) not of a similar nature?

That doesn't mean credit agencies shouldn't be able to provide paid for services for consumers also, but those services should be for something that is clearly distinct from what should be obtainable for free (i.e. a person's credit report).

Your post suggests to me that experian don't get it. Consumer pressure is going to lead to free access to credit reports (at least on-line) so the sooner that experian realise this rather than carry on fighting a losing cause to retain the ridiculous and unfair paid for reports the better. If you wait until you are forced to offer the free reports I really hope that your company loses financially in being behind the game.

I think it is excellent that MSE have given the noddle guest the chance to explain their postion on the free trials and I hope (with the caveats about being wary about what noddle get out of it) that they get good publicity out of this and a competitive head start for when free reports are the norm, and this more than balances the cost of not charging when other credit agencies like experian currently do charge.

Consumerist

Referring to a recent MSE news story - How Financial Conduct Authority should help consumers - we currently have an opportunity to make our feelings known to the new Financial Conduct Authority.

Tell us your thoughts
This is your chance to help make a better financial future. From now until 1 September we are getting feedback from everyone involved in financial services and we are really keen to hear from you.
I look forward to reading your comments on the site. You can also email your thoughts to [EMAIL="FCAApproach@fsa.gov.uk"]FCAApproach@fsa.gov.uk[/EMAIL] or get your local MP involved and get them to speak to us on your behalf.
You can find out more about the new organisation at www.fsa.gov.uk/FCA

A number of objections have been raised on this thread and elsewhere on the site and this is a chance to get some of those objections considered where it counts.

debtinfo

as has been mentioned Call credit have the most incomplete data the so giving you access for free in your most generous way is akin to a builder giving away 3/4 built houses to the homeless (sorry about the roof, no one updated us that you might want one)

as to your argument that you have invested lots of money to make sure the comercial side works (hmmm what was that word, ah right) excellently. Well surely your job is to provide good information to aid the financial institutions choose wisely who to lend to, to make sure that repayments are kept up and the economy keeps working tickety boo, you have been doing excellently.

(whats that bob, financial crash, banks overlending, recession, subprime mortgages) when the f$%^ did that happen, i obviously haven't being paying attention

Consumerist

debtinfo wrote: »

as has been mentioned Call credit have the most incomplete data the so giving you access for free in your most generous way is akin to a builder giving away 3/4 built houses to the homeless (sorry about the roof, no one updated us that you might want one) . . .

Well, I agree it's not perfect but I hope you will agree it is, at least, a step in the right direction.

huggychair

Consumerist wrote: »

Well, I agree it's not perfect but I hope you will agree it is, at least, a step in the right direction.

Agreed, but always remember that every time you ask for a credit report, a record of your request is logged on your credit record with that agency.

As mentioned Call Credit is the least used of the rating agencies, and in a large number of cases, they may hold no information about you at all.

So although the offer of a 'Free' Credit report may seem altruistic, especially when publicised on a consumer focused forum like MSE, what you may well be doing is actualy creating a record for yourself with them rather than uncovering hidden skeletons.

The more users they have on their records, the more viable their credit checking services become for their core customer base.. win win!!

Doooford

I can't see where the sting is in Noddle, I think there is one though...

paulgbar666

Bearing in mind NOBODY has a RIGHT to credit it is clearly in the interests of ALL lenders that they possess 100% accurate information about any applicant for credit.
Credit reports have been free in the USA I think for free.
It is as important in modern life that just like id details that one's credit details are correct.
ANY credit applcation SHOULD only be made AFTER one has checked all 3 credit reports for all 3 CRA's.
If there is ANYTHING wrong then you MUST have it corrected and confirmation that it has been corrected.
DO NOT apply for ANY credit until this is the case.
Once you know ALL your reports are correct then you may apply for credit.
The reason you do it this way is as Martin bangs on about correctly; your credit searches are extremely valuable.
DO NOT waste them.
You should not mind if you are rejected; but at least you will know you have been rejected on 100% accurate information.
You may then follow Martin's advices on how to put yourself in the best possible position to obtain credit.
It has been my experience over the past 35 years that lenders and cra's are incompetent.
DO NOT trust them.
Always keep details of ANY correspondence they have sent; even if you scan and save it.
I have items going back 33 years and retention of those documents has been my salvation in dealing with idiot lenders and cra's.
It clearly makes sense for a lender to have 100% accurate information, particularly for this Noddle service from Callcredit.
You should get all your information for free but accept that prospective lenders will trawl through your data and market deals at you.
That is the business model for google and as far as I am aware they seem to have done alright so far!!? I use google for everything and I am not the slightest bit concerned that they see all my data.
I have no issue with this whatsoever providing I get all my information for FREE.
Being free one is motivated to ensure information is correct which is just what callcredit wants you to do as it is in a better bargaining position with lenders as it can state it has so many members who ensure their details ARE correct.
This is a better business proposition for lenders who are then managing their marketing offers on most likely ACCURATE information.
Such marketing focus reduces their wasted time on applicants they would not wish to bother with.
Therefore as mentioned by other posters ALL 3 CRA reports should be free.
They make more than enough money from lenders and organisations carrying out credit checks and id verification; and if everybody checked and monitored their CRA details this would substantially reduce fraud and possibly facilitate people being more successful in credit applications.
Essentially people need to be in a position to monitor ALL their credit details, just like you can with your bank account.
Clearly if ALL cra's had this FREE monitoring facility it would benefit them substantially on the basis that more information held on people would most likely be accurate as it woul:jd be the customer who would effectively be doing ALL the donkey work in ensuring their details are accurate; which is just what the CRA's want.
Accurate information is more valuable to the cra's who can advise lenders that their customers are continually updating and ensuring their details are CORRECT.
Effectively we ALL become unpaid employees of the CRA's who end up with more valuable information and all they have to do is offer their service to individuals for free. Simples!!!