The Imbecility of the Credit Reference Agencies

shonzyd

its all well and good for people to judge you now but when youre 18 you have a completely different mind and as previously stated it was very easy to get credit years ago.

I have nothing against CRAs. my comment was previously based on lack of education around this for young people.

And you dont need a maths A level to get credit. You may have zero ability to understand %s. That doesnt mean you wont be able to get a credit card the day you walk out of college.

not sure what school others went to but learning triganomtry (excuse the spelling) and the likes taught nothing about managing money. Alot of people dont understand interest rates and the small print now, so what hope is there at that age.

God forbid if my child ever got into financial difficulty, but hopefully i would be more understanding if they did instead of assuming they should know because of a GCSE in maths.

Regards

mortgage_wannabe

olly300 wrote: »

You obviously never listened in your Maths classes.

Why did you think you were taught about percentages and fractions from a young age? Why did you get taught about compound interest?

Oh and if your child wants to have a good credit rating it's worth teaching them to buy something expensive on a credit card for section 75 protection and then paying it off in full two days later.

They don't teach you anything about finances in maths. I hadn't even heard of a credit file until I was in my 20's.

You see so many people who say the same thing that it's totally fair to question education. In fact in our place (a bank) we have started visiting schools to teach kids about the importance of money, particularly interest and debt. It's been extremely well received so I think there is appetite for it.

When did you learn about CRA's?

squeeks

I don't have much love for credit agencies. I do find it slightly scandalous that they charge individuals for what is in effect access to their own data. Does the BOE have to pay to receive their AA??? rating from moodys when it changes?

Then once you do pay for access they make it far harder then necessary to unsubscribe. I mean what is wrong with a simple unsubscribe button on the main dash board? - unless they have improved the process since I last ventured anywhere near them?

Crashandburn

squeeks wrote: »

I don't have much love for credit agencies. I do find it slightly scandalous that they charge individuals for what is in effect access to their own data.

Then once you do pay for access they make it far harder then necessary to unsubscribe. I mean what is wrong with a simple unsubscribe button on the main dash board? - unless they have improved the process since I last ventured anywhere near them?

Does it help that you'll see their logo on the Williams Formula1 team this year?! Seems good money in providing inaccurate data.....

droiderm

Unfortunately they are a necessary evil.
However, there needs to be more responsibility put onto them to verify they hold correct data. I have been through battles with all 3 and lots of creditors over the past 5-6 months due to inaccuracies. Either the lenders don't respond, the CRA's may help, but even in situations when the CRA can accept it's incorrect, they have to bow to what the lender thinks.

Added to that the CRA's can hold different information, it's a massive task getting your files correct in some circumstances.

When you have exhausted all possibilites you end up with the FOS/ICO (tax payer funded?) to sort out the issues.

They need to be given more responsilbilty to ensure accuracy, which should be transparent to the consumers.

ejr2403

We should be clear here. CRAs hold inaccurate information on many of us. The methods with which we have to work to put inaccuracies straight are long-winded, tortuous and ultimately are in the hands of someone else, someone who often does not care ie court administration, CRA employees etc. And If you do not have any credit you are rated to be a high credit risk for the future, absolute rubbish!

The real issue is that every credit application should be dealt with on its merits. That means at the very least being given an opportunity for challenging and correcting a credit file without cost and or penalty within a very short time frame. That is why they should be regulated and probably by the Govt. Info they hold is often inaccurate poor and yet banks make decisions based on this. Appalling. Some loans are not even recorded by the CRAs, often defaults are recorded in error etc

If we asume that these CRAs are a "necessay evil" then at the very least they should be fully regulated.

As a start may I suggest that, immediately, these rich and powerful CRAs be made to email to each and every customer they hold information on their complete credit file. each person should then be able to agree/disagree with the information and be allowed to post up comments/ notes to explain a late payment for example.
People should also have the right to opt their information out

These two suggestions would not only make the information more detailed it would also give te banks a better feel for the potential borrower.

I would also suggest that a failure of the CRAs to undertake to do these two things would blatantly show the people in this country that a CRA is just concerned with amount of info not its quality or accuracy and therefore isn't concerned about its customers, not us the Public, we are just the free-info, but rather the lenders

Thrugelmir

The CRA's merely collect data as submitted by the Companies that use them. The CRA's have no means of verifying the data lodged.

ejr2403

Thrugelmir wrote: »

The CRA's merely collect data as submitted by the Companies that use them. The CRA's have no means of verifying the data lodged.

So what? Does that mean that's Ok then?. Complacency is not acceptable really. These CRAs should be made to check the accuracy of each credit data entry, with the member of the Public concerned. at their expense. After all they are selling this info to Banks and us the Public. Regulation is most certainly required