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insurance fraud

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We recently had a three letters from Direct Line delivered to our house. Correctly addressed, but the names on the addresses did not belong to anybody in the house (and we've been here for 20yrs, so it's not as if they were previous occupants). Two letters we sent back "not known at this address", the third we opened. It contained an insurance certificate and all the details of somebodys car. I called Direct Line and they suggested that it was most likely that these people had been using our address as we live in a rural area with low crime rates and therefore low insurance rates. It's obviously a known scam as he used a word for it which I can't remember. Said that he would investigate, try and get hold of the policyholders and change the address if they were genuine errors or cancel the policy if not.

After putting the phone down and looking at the insurance schedule, it occurred to me that, as this person is paying monthly for their insurance and therefore has a credit agreement with Direct Line, then a credit search will have been carried out on that persons name at our address. Not sure how they would have "passed" that credit check as that person has never lived here and presumably the credit agency would know that or make some sort of cross check with the electoral register.

Can somebody who knows please tell me what the situation is likely to be with credit searches? The searches can't have been made in my (our anybody else who actually lives heres) name, but they would seem to have been made to my address and I don't want to have my credit score affected by this.

Thank you.

Comments

  • forgotmyname
    forgotmyname Posts: 32,904 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The search was their name not yours.

    Always open mail delivered to you. I do and have had the same happen.
    Contact them and heard nothing again.
    Censorship Reigns Supreme in Troll City...

  • worried_jim
    worried_jim Posts: 11,631 Forumite
    10,000 Posts Combo Breaker
    You have nothing to worry about. It won't effect your credit tile at all.
  • yebaws
    yebaws Posts: 277 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    The search was their name not yours.

    I realise that, but had heard that credit records relate partially to addresses, not just names *and* addresses, so that multiple searches on my address, even if not made to my name at my address, could also affect credit scores?
  • Dobbibill
    Dobbibill Posts: 4,191 Ambassador
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Name Dropper
    yebaws wrote: »
    I realise that, but had heard that credit records relate partially to addresses, not just names *and* addresses, so that multiple searches on my address, even if not made to my name at my address, could also affect credit scores?

    It would be per person. There are several people in my house but my credit report does not show up a search that is done for another member of my family even though we are all at the same address.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • DCFC79
    DCFC79 Posts: 40,635 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 27 November 2016 at 12:27AM
    yebaws wrote: »
    I realise that, but had heard that credit records relate partially to addresses, not just names *and* addresses, so that multiple searches on my address, even if not made to my name at my address, could also affect credit scores?

    What, affect a credit score only you can see ?
  • yebaws
    yebaws Posts: 277 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    OK, thanks for the help. Just interested to know what people think as I would guess that there is a good chance that these people will default on their instalments. At least Direct Line seem to have accepted the situation. Asking for some proof of address from people would seem to be the best way to prevent it in future, but who am I to make suggestions...
  • DCFC79
    DCFC79 Posts: 40,635 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    yebaws wrote: »
    OK, thanks for the help. Just interested to know what people think as I would guess that there is a good chance that these people will default on their instalments. At least Direct Line seem to have accepted the situation. Asking for some proof of address from people would seem to be the best way to prevent it in future, but who am I to make suggestions...

    You have done all you can by alerting Direct line to it, if the similar sort of thing from other insurers then let them know.
  • dacouch
    dacouch Posts: 21,636 Forumite
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    Ghost Broker is the word you can't remember
  • Nasqueron
    Nasqueron Posts: 10,620 Forumite
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    There is no such thing as a "credit score" unlike the US system. The number you see from Experian etc is their "rating" of you, they want to sell you services to improve a number that they generate so try and make it seem like the score is meaningful to get you to / keep you paying the monthly fee. The only issue is the data on your file which a business will use to form their own score (even Experian admit this in their FAQs). A credit file is personal (though you can be linked e.g. via a joint account), someone else's name at your house doesn't change your personal rating.

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • eddddy
    eddddy Posts: 17,942 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    yebaws wrote: »
    ...Asking for some proof of address from people would seem to be the best way to prevent it in future, but who am I to make suggestions...


    Sometimes insurance companies don't make too many checks when you take out a policy. Instead they do the checks if/when you claim.

    So if somebody is using using a false address, any claim probably won't be paid.

    Obviously, it's cheaper for the insurance co to only check people who claim, rather than checking everyone who applies.
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