Multiple credit searches

janbanan

I received my first Experian credit file and would like to ask your opinion on what I found on there. This is actually related to a mortgage application, however my question is about credit files. I thought this board would be the most appropriate since I think it's members would know more about this than anyone else!

I applied for a Halifax mortgage using a broker on 3 June. However the purchase fell through and we decided to purchase another. We then applied for a second mortgage (with different broker) on (or around) 27 June.

On my credit file, I found 7 searches made by Halifax during this time:
5 June (two days after first application)
21 June
21 June
21 June (yes, three searches on one day!)
27 June (day of second application)
14 July
2 August

I don't understand why so many searches were made on one individual in so short time. Apart from applying twice, the applications themselves were straight-foward. I'm wondering whether this could affect my credit rating? To make things worse, each record contains the "time at address" which was keyed in wrong by the mortgage broker. It's says 27 years, which is far from correct. I'm worried this also can give the impression I've tried to give false information.

I have written to Halifax who were "sympathetic", but refused to do anything. Put briefly, they said they can not be held responsible for the incorrect data they received from my broker, which I accept if it really was the broker who made the error. However their letter does not give an explanation to why they searched my file 7 times.

I'd like to write back, but not knowing very much about these things, I'd like to ask first:
1. Am I wasting my time? Could those searches cause problems for me?
2. Do I have a leg to stand on in this case? Is searching someones file several times standard practice?
3. If they are wrong, are Halifax able to delete the records of these searches or correct information on them?

Grateful for any advice!

YorkshireBoy

No-one can search your credit file without your permission. This permission can be given orally, as well as in writing (ie by providing your signature on an application document/contract with the broker). Did you give (either lender or broker) permission? What did the T&C's of your contract with the brokers say regarding searches?

Each search on your credit file will have a "search type" label. What do yours say? If they are marked as "quotation search" (as you should always ask for when shopping around), then these searches are not seen by other lenders when searching your file and will therefore have no detrimental effect on your credit rating.

janbanan

YorkshireBoy wrote: »

No-one can search your credit file without your permission. This permission can be given orally, as well as in writing (ie by providing your signature on an application document/contract with the broker). Did you give (either lender or broker) permission? What did the T&C's of your contract with the brokers say regarding searches?

Each search on your credit file will have a "search type" label. What do yours say? If they are marked as "quotation search" (as you should always ask for when shopping around), then these searches are not seen by other lenders when searching your file and will therefore have no detrimental effect on your credit rating.

Thanks for your response. All 7 records say:

Searched by:HALIFAX - MORTGAGES
Application type:Mortgage

The T&C say they "may use credit searches and other information supplied to them and/or the credit reference agencies about me and someone linked financially with me, to make credit decisions about me or other members of my household".

I was prepared for them to search my files, but I'm just not sure why they needed to do it 7 times.

smithja

I think if you made 2 application then all you have authorised is 2 mortgage searches, the rest are in error. Sometimes it is a fight to get these things put right. The credit reference agency is under an obligation to hold accurate data as is the bank, as you only gave permission twice they need to remove the rest of the searches. I would write to both the bank and the credit reference agency. The credit reference agency will likely try and fob you off and tell you the information belongs to the lender, it doesnt it belongs to them, which if you get to that stage you need to threaten them both with the Information Commissioner who deals with the laws relating to Data Protection. Sorry to make it sound such a hassle, but I am afraid it often it is. It is also much more of a problem with Experian than Equifax in my opinion, Equifax as much easier to deal with and I would take a look and see if the searches have been carried out with them too, as if they dispute it with the lender the lender will get it removed from both files and they will keep you up to date about what is happening while they do it. James