MSE News: Rent payments to go on your credit file

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"Missed rent payments could cost you a mortgage, loan, credit card, or indeed a new tenancy agreement ..."

Read the full story:
Rent payments to go on your credit file

jjlandlord

Let's clarify: From the article what is actually happening is that Experian would like letting agents and large landlords to share rent payment histories with them, with presumably the intent of charging them back to access this info during credit checks.
And to do that they not only need letting agents/landlords to play ball but they also need tenants to agree to it through a clause in tenancy agreements.

Considering the track record of most letting agents and some rogue landlords, as a tenant I would absolutely refuse.

kingstreet

Just who will check the veracity of the information being logged? Multi-million pound mortgage lenders make mistakes and are lousy at rectifying them afterwards...

jjlandlord

kingstreet wrote: »

Just who will check the veracity of the information being logged? Multi-million pound mortgage lenders make mistakes and are lousy at rectifying them afterwards...

Exactly. So what could be expected of your average letting agent?

rdchick

For me this is pretty scary news...

I have never ever missed a rent payment but I am worried that my finances would be joint with my partners which I have tried to remove from my files before.

Also if it's back dated then my ex has a terrible financial record and I could be linked to him too... brilliant! xxx

lazer

Rent is paid in advance, so therefore is not credit, so therefore should not appear on credit files.

If you miss a payment, it is still not credit as the landlord usually has 1 months rent as deposit, so as long as you pay it within the month, it is still not credit.

However, over 1 month overdue rent is in effect credit and should be reported on the credit file.

budgetdiyer

Needs work on the exact implementation, but a fantastic idea and would work well if implemented.

Mortgage payments show on a credit record, so should rent payments.

tbs624

So should anyone being paid late for anything, for whatever reason, have provision to "share" the info with Experian et al?

Don't you love the way Experian try to dress up their potentially very lucrative new income stream as being advantageous to the majority?

Note that the initial intention is that this will apply only to the private rental sector. So not only do PRS Ts get to pay higher rents than those who are Ts in social housing and less security of tenure, but they are likely to be subjected to extra scrutiny over whether or not they have made a late rent payment?

Before signing up to a tenancy agreement Ts should cross through any line about non-specific data sharing.

LLs may also want to think about how their own data will be shared. They will of course all be declaring their rental income to HMRC and have the right mortgage product/consent in place and so on.

Such a move by Experian is commerce driven data creep.

There is already an imbalance between LL&T in terms of information requested/provided.

Add to that the spectre of the many untrained, inadequate and unregulated LAs being effectively given greater opportunities to make Ts lives a misery..

LoveFool731

Mmm... so now the Deposit Protection Scheme is in place... how could a devious landlord squeeze more money out of your deposit before you leave?

Oh yes, with threats of giving you a bad reference.

Pay up the money I outrageously demand (which you're probably hoping to pay off the new deposit you put on a credit card) or you'll never rent again!

LoveFool731

budgetdiyer wrote: »

Needs work on the exact implementation, but a fantastic idea and would work well if implemented.

Mortgage payments show on a credit record, so should rent payments.

See previous post why...

lazer wrote:

Rent is paid in advance, so therefore is not credit, so therefore should not appear on credit files.

If you miss a payment, it is still not credit as the landlord usually has 1 months rent as deposit, so as long as you pay it within the month, it is still not credit.

However, over 1 month overdue rent is in effect credit and should be reported on the credit file.

PasturesNew

Licence for "cash only" LLs to proliferate... and we know how fabulous they all are.