Reform of credit ratings and records

sheff6107

Teresa May said she was going to look at everything about 6 months ago after the spike in default CCJs affecting mortgage applications.

Which obviously means absolutely nothing will happen or change.

meer53

OP, your idea would just result in people getting into more debt, more often. How would that help ?

RedDwarf82

How are CCJs matched to a person credit report anyway?
Every credit application form I have ever seen only asks for 3 years of address history. If you have a CCJ registered to an old address... will the new creditor ever see it?

antrobus

LadyGMadameToThee wrote: »

Does anybody else feel that the current system of heavy reliance on CRA is out-dated and could actually be stifling the economy? I currently have an excellent rating but I do believe that it's very unfair to keep defaults and ccjs on people's files for a period of 6 years...

In a word, no.

LadyGMadameToThee wrote: »

.. When and why did they arrive at that time period?

Limitation Act 1980.

Different arrangements apply in Scotland

LadyGMadameToThee wrote: »

..Isn't it time that government accepted that the boom and bust cycle of a capitalist society inevitably leads to most people struggling with finances at some point in their lives and, therefore, punishing them for almost a decade, not only holds people back and disincentivises them from being aspirational, but it also may well be damaging the economy?

The " boom and bust cycle" of capitalism is often the result (as we have seen in recent times) of banks etc lending money to people who can't pay it back. Lending even more money to people who can't pay it back is not going to make things better, now is it?

EachPenny

LadyGMadameToThee wrote: »

...I do believe that it's very unfair to keep defaults and ccjs on people's files for a period of 6 years.

It could be worse, thank goodness people are no longer thrown in jail for unpaid debts - can you imagine the size of the prison population if they were?

shortcrust

A blank slate after six years seems generous to me. Afterall, there are consequences for all of us when people default on debts.

takman

RedDwarf82 wrote: »

How are CCJs matched to a person credit report anyway?
Every credit application form I have ever seen only asks for 3 years of address history. If you have a CCJ registered to an old address... will the new creditor ever see it?

CCJ's are linked to your credit report and so are previous addresses. So when you enter your details into a credit application they will be able to view your credit report which contains your previous address and CCJ.

amstel2

SnowTiger wrote: »

We've already learned that Barclaycard follows the rule: fool us once, shame on you; fool us twice... that ain't gonna happen.

That's not been my experience & i went BR owing them money. Mind you i waited until the BR dropped off CRA files until i applied again & was accepted straight away.

Magpie87

My only objection with the dependence on CRAs is that they are given so much authority and often don't have accurate information on which to make a decision e.g. if someone was to ask Call Credit about me, they would be told I'm a 30 year old male (correct) who is not on the voter register, pays no utilities and has never had a bank account (all false). I can't make anyone share information with Call Credit, so I just have to hope nobody limits their searches to them. This is clearly a bit of a daft situation.

takman

Magpie87 wrote: »

My only objection with the dependence on CRAs is that they are given so much authority and often don't have accurate information on which to make a decision e.g. if someone was to ask Call Credit about me, they would be told I'm a 30 year old male (correct) who is not on the voter register, pays no utilities and has never had a bank account (all false). I can't make anyone share information with Call Credit, so I just have to hope nobody limits their searches to them. This is clearly a bit of a daft situation.

Not having your utilities or bank account on the credit report won't effect you much but saying you are not on the electoral roll when you are is incorrect and is something you can and should flag up to be corrected.