insurance fraud

yebaws

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.

forgotmyname

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.

worried_jim

You have nothing to worry about. It won't effect your credit tile at all.

yebaws

forgotmyname wrote: »

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

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.

DCFC79

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

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

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

Ghost Broker is the word you can't remember

Nasqueron

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.

eddddy

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.