Credit Reference Agencies may hold your data for up to 10 years!

NewUser1972

I posted some questions about this elsewhere as I have negative payment markers on my file which go back 8 years. I have found some information which I thought I'd share so started this new post...

This link https://www.experian.co.uk/legal/crain/ is from CRAIN which stands for Credit Reference Agency Information Notice. 

7. FOR HOW LONG IS CREDIT REFERENCE DATA RETAINED? is the section you need to look for and you will find a link to each CRA here

This outlines the agreed data retention periods for each of the three UK credit reference agencies. I guess its self governed but nevertheless these are the rules they say they follow and they certain opened my eyes.

In summary:

Equifax keep payment history for open accounts for 4 years. However if you close or settle your account they keep this data for an additional 6 years.  Default and Judgement data falls off 6 years from the relevant data, regardless and all accounts fall off 6 years after they are closed or settled

Experian keep payment history for open accounts for 6 years + a further 5 years (for 'profiling and statistical analysis).  Once again default and judgement data falls off after 6 years regardless and all accounts fall off 6 years after they are closed or settled

Transunion keep history for open account for 6 years for 'live decision making' and a further 4 years for 'profiling and statistics'. Same for default and judgement data (which again falls off, together with account data, after 6 years)

My reason for investigating this was that I have a couple of closed accounts on my Experian and Equifax record (British Gas) and back in 2014,2015,2016 I missed some monthly payments here and there before eventually closing my account (because I switched to another provider) in 2020.  My Equifax and Experian credit report is showing my missed monthly payments right back to 2014 (almost 9 years ago) and I am told that this will be the case until the account itself falls off 6 years from the date I closed it (i.e. Jan 2026) by which time the missed payment markers will almost 12 years old.  Maybe they will drop after 10 years as their own guidance says but even so that is much longer than the 6 years I had always believed to be the case!

Everywhere on line says bad/delinquent/historical payment history stays for up to SIX years but this doesnt appeart to be quite right.  I have queried this with Equifax and Experian and whilst Experian came back to me and told me to 'Google it'! Equifax actually pointed me to CRAIN.  They insist they keep records for the purposes they state (6 years for live data, another 4 for statistics etc.) but they also insist that anyone searching my record will see exactly what I see - that means my poor payment record from 9 years ago could still go against me now

tacpot12

Thank you for sharing.

KoshB5

For all the CRAs their credit history databases used for assessing risk of doing business with an individual only hold data for six years. Any data held longer for statistical / retrospective processing is not used for credit scoring by companies when you apply for credit.

Some useful links -

https://ico.org.uk/media/your-data-matters/documents/1282/credit-explained-dp-guidance.pdf

https://www.scoronline.co.uk/wp-content/uploads/2021/07/PoR-version-41-final-June-2021.pdf

NewUser1972

KoshB5 said:

For all the CRAs their credit history databases used for assessing risk of doing business with an individual only hold data for six years. Any data held longer for statistical / retrospective processing is not used for credit scoring by companies when you apply for credit.

Some useful links -

https://ico.org.uk/media/your-data-matters/documents/1282/credit-explained-dp-guidance.pdf

https://www.scoronline.co.uk/wp-content/uploads/2021/07/PoR-version-41-final-June-2021.pdf

Thanks for this, this is helpful and I hadn't seen these documents before. However, I'm still not convinced.  I think you may well be right about not using anything over 6 years for 'credit scoring' although unless  you are making that statement with experienced knowledge then again I recognise that as a well repeated statement but I'm not sure we know it to be absolutely the case.  In any case my point was that for closed/settled accounts they stay on your credit file for 6 years from the date they are settled/closed and then they drop off, along with all the related history.  This information is published everywhere and backed up by the link you posted.  However, what Equifax told me was that when such an account is closed/settled all of your payment history is 'frozen' but remains visible until the 6 year anniversary of the date of closure/settlement. Therefore, even if automated credit scoring algorithms only look at 6 years a real eyes on check will still show missed payments >10 years old.

Thanks

KoshB5

I used to work (8+ years) for one of the CRAs.

NewUser1972

KoshB5 said:

I used to work (8+ years) for one of the CRAs.

OK, perfect, thanks.  So do you know then if when someone has an eye's on they can or cannot see data older than 6 years for missed payments on settled/closed accounts which have not yet fallen off?  Such markers are on my credit file and Equifax tell me that if I can see it then anyone searching can see it (unless its a soft check).  Is this wrong then?

Thanks

KoshB5

Only for companies / organisations that have the right to see credit history data within their permitted purpose when dealing with an individuals application will see the six years of data and hard (credit application) search counts. Hard credit searches are done at the application stage. There may be subsequent hard searches e.g. Mortgage applications, before funds are released.....

To see CIFAS and GAIN data they have to be members of the relevant bodies. CRA credit history sharing (simplistically) works on the principle that what you submit is what you get to see from other providers, which is why utility / mobile providers started sharing their data with the CRAs.

CRAs provide many other services e.g. fraud, money laundering, affordability...., which may also be used as part of their application processing but these wouldn't return account history. See my other posts on the things that get returned.

If you want to see what a CRA holds on you above and beyond your credit file submit a SAR to them.

NewUser1972

KoshB5 said:

Only for companies / organisations that have the right to see credit history data within their permitted purpose when dealing with an individuals application will see the six years of data and hard (credit application) search counts. Hard credit searches are done at the application stage. There may be subsequent hard searches e.g. Mortgage applications, before funds are released.....

To see CIFAS and GAIN data they have to be members of the relevant bodies. CRA credit history sharing (simplistically) works on the principle that what you submit is what you get to see from other providers, which is why utility / mobile providers started sharing their data with the CRAs.

CRAs provide many other services e.g. fraud, money laundering, affordability...., which may also be used as part of their application processing but these wouldn't return account history. See my other posts on the things that get returned.

If you want to see what a CRA holds on you above and beyond your credit file submit a SAR to them.

Thank you very much, I will take a look through your other posts.  My question remains unanswered and remain none the wiser but I wont ask it a third time. Thank you for taking the time to respond

KoshB5

They can't see anything older and even if they could they wouldn't be allowed to use it for processing a credit application.