The Abuse of the Credit Rating System

Archi_Bald

adindas wrote: »

I do not need CRA, borrowers do not need CRA. The Lender needs them but make us pay for it.

Unfortunately you (and I) do need CRAs, borrowers do need CRAs. If all borrowers were responsible and only borrowed what they can afford to pay back and paid back as agreed, they wouldn't need to be 'policed', and those that do not borrow wouldn't have to fear that they would have to pay for irresponsible borrowers.

The system might not be perfect and can do with improvements but it is the borrowers in the first instance that aren't perfect.

All I get from this thread is that if people had properly handled their complaints they wouldn't have got markers on their CRA files in the first instance. But it is of course much easier to whinge and moan.

debbiegf

I have a default and 2 late payments on my Eon account and its all been made in error. I have been trying to sort this out over the phone for 3 weeks. These companys do get it wrong frequently. I have just had a default removed from V.Media which was made in error.

meer53

adindas wrote: »

It is just the business model the way the bank in the US operate. Most people in the US do not need to withdraw cash as people are paying with credit cards even for a very small amount. In the UK and like many countries in Asia it is still free because they could make more money from anywhere else from flogging their products to you. But any product they sell such as mortgage, loan, insurance all of that have a value creation and people buy it becasue they need it not becuase they have to and left with no other option.

Paying the bank because they provide you service is different with paying an institution who are holding and selling your data to other parties; paying an institution to check whether they are making mistake in recording your data is different, is not it??

I do not need CRA, borrowers do not need CRA as I know my credit records more than anyone else on earth. I know how many credit cards, how many defaults, how many CCJs do I have, whether or not I have bankruptcy. Why do I need to pay to check someone else record about me to see whether there is a mistake in their record ???

If the lenders do not use CRAs, are you bother to look at your credit records hold by the third party or at worst to pay.

We pay the CRA because we have been left with no other option rather then to pay.

What a ridiculous statement ! How on earth can you state that MOST people in the US use credit cards ? Many many peoples in the US will not hold credit cards, exactly the same as in the UK.

CRA's don't make a mistake in adding information to your credit file. The information is passed to them by the lenders or the companies who have not been paid. They just log what they've been provided with. They aren't the ones making the mistakes.

If you don't need to see your credit file then i'm very happy for you. However, what you seem to fail to understand is that a lot of people do need to have access to this information.

What would your alternative be for these people if the CRA's didn't exist ? I'd be interested to hear.

usefulmale

meer53 wrote: »

What a ridiculous statement ! How on earth can you state that MOST people in the US use credit cards ? Many many peoples in the US will not hold credit cards, exactly the same as in the UK.

CRA's don't make a mistake in adding information to your credit file. The information is passed to them by the lenders or the companies who have not been paid. They just log what they've been provided with. They aren't the ones making the mistakes.

If you don't need to see your credit file then i'm very happy for you. However, what you seem to fail to understand is that a lot of people do need to have access to this information.

What would your alternative be for these people if the CRA's didn't exist ? I'd be interested to hear.

We managed perfectly well before CRAs existed. Mind you, I'm in my mid-40s. If you are in your 30s or under, you probably won't remember a time before they existed.

meer53

usefulmale wrote: »

We managed perfectly well before CRAs existed. Mind you, I'm in my mid-40s. If you are in your 30s or under, you probably won't remember a time before they existed.

You still haven't said what alternative you feel would work ?

Times have changed. Years ago if you wanted to borrow money, you would go and see your bank manager. These days, they no longer exist for the majority of people so there has to be a system which records how people manage their finances. If you can think of a better one, you'll be a millionaire.

To prevent companies from offering money and services to people who have a history of poor financial management, there has to be some sort of check. CRA's aren't perfect but they're all we have for now. I use the CRA's every day, they're a great tool for people who make lending decisions.

How old i am is irrelevant, but i'm older than you. It's not a matter of age, it's a matter of understanding how businesses work. Just because you have no use for a CRA doesn't mean they shouldn't exist.

usefulmale

meer53 wrote: »

You still haven't said what alternative you feel would work ?

Times have changed. Years ago if you wanted to borrow money, you would go and see your bank manager. These days, they no longer exist for the majority of people so there has to be a system which records how people manage their finances. If you can think of a better one, you'll be a millionaire.

To prevent companies from offering money and services to people who have a history of poor financial management, there has to be some sort of check. CRA's aren't perfect but they're all we have for now. I use the CRA's every day, they're a great tool for people who make lending decisions.

How old i am is irrelevant, but i'm older than you. It's not a matter of age, it's a matter of understanding how businesses work. Just because you have no use for a CRA doesn't mean they shouldn't exist.

So basically, you have a vested interest in CRAs. I've no problem with that but you should say so from the outset.

BTW, your initial question is probably intended for Adindas.

adindas

The lender needs CRAs to assess whether a person fit for a loan, credit, etc. So they should be the one who need to pay. But here in the UK there is conspiracy between the CRAs and the lenders. The CRAs get their power from lender.

The borrower never ask their file to be recorded.
CRAs never asks permission from people to sell their records. The CRAs get permission via bank and agree to be fed to CRA but not to sell and making money from it.
The CRAs are making money by selling records about you.

Borrowers know their credit records more than anyone else on earth. Why do they need to pay to check someone else record (e.g the data about them) and to see whether there is a mistake which will be fed to the third party ???

If the lenders do not use CRAs,there will be no borrower will bother to look at their credit records.

We pay the CRA because we have been left with no other option rather then to pay. In the US it is free of charge ...

Look at here what people say about CRA and their records
http://www.bbc.co.uk/programmes/articles/1FV0VyS6DFgDCS64NP0T4bB/credit-reference-agencies

https://www.trustpilot.co.uk/review/www.experian.co.uk
http://www.reviewcentre.com/reviews103312.html
http://www.consumeraffairs.com/privacy/experian.html

meer53 wrote: »

What a ridiculous statement ! How on earth can you state that MOST people in the US use credit cards ? Many many peoples in the US will not hold credit cards, exactly the same as in the UK.

CRA's don't make a mistake in adding information to your credit file. The information is passed to them by the lenders or the companies who have not been paid. They just log what they've been provided with. They aren't the ones making the mistakes.

If you don't need to see your credit file then i'm very happy for you. However, what you seem to fail to understand is that a lot of people do need to have access to this information.

What would your alternative be for these people if the CRA's didn't exist ? I'd be interested to hear.

meer53

usefulmale wrote: »

So basically, you have a vested interest in CRAs. I've no problem with that but you should say so from the outset.

BTW, your initial question is probably intended for Adindas.

My question was intended for Adindas, my apologies.

I don't have a vested interest in the CRA's i just have to use them daily in my job. I can see the benefit of using them.

Adindas - you don't HAVE to pay for your credit file. I've never paid to see mine, i've never needed to. We're not talking about hundreds of pounds here, in the grand scheme of things it's a very small amount. Some people are happy to pay it, some aren't. It still doesn't mean they don't serve a purpose.

http://www.consumeraffairs.com/privacy/experian.html This link is from people in the US who are complaining about paying for their credit files. You keep stating that "it's free in the US" ???

BikingBud

meer53 wrote: »

To prevent companies from offering money and services to people who have a history of poor financial management, there has to be some sort of check.

With that process i have no qualms, however, as we seem to keep going round in circles i'll say it out loud because you seem to be hard of hearing:

IT IS THE ABUSE OF THE SYSTEM BY LARGE COMPANIES WHEN THERE IS NO REAL DEBT JUST THIER INABILITY TO MANAGE CUSTOMER ACCOUNTS EFFECTIVELY

that we are discussing not the reasonable process by which continual defaulters are screwing us all.

E.ON_Company_Representative

debbiegf wrote: »

I have a default and 2 late payments on my Eon account and its all been made in error. I have been trying to sort this out over the phone for 3 weeks. These companys do get it wrong frequently. I have just had a default removed from V.Media which was made in error.

Hi debbiegf,

I've replied on your first post, here's my reply.

https://forums.moneysavingexpert.com/discussion/5106851

Amy:)