The Abuse of the Credit Rating System
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GettinBetter
Posts: 10 Forumite
It saddens me to think that the the vast majority of british citizens are at the unscrupulous hands of the Credit Rating Systems.
No doubt if you work at one of these places you'll probably have a fantastic credit rating (now that would make an interesting survey), but for the rest of us, we fall into at least four categories.
Those that pay regularly and never miss a payment (usually earn enough not to care too much)
Those that have fallen on bad times due to employment, ill health, etc. (the list is endless)
Those that the 'system' has completely messed up (the usual nightmare admin mistakes)
& Those that just dont want to pay.
What worries me is those that have a disagreement with a companies dealings with them (often because of bad admin which includes computer errors) are then hounded, harrassed, into paying by the threat of "Getting a BAD credit rating".
What amazes me more is that you now have to pay to LOOK at your credit rating!! So these people write stuff about you & you have to pay to see if its true. How did they get away with that?
Whatever is on there (rightly or wrongly) is considered gospel!
Amazing!! if not completely pathetic...and we all let it continue by doing nothing.
So I can't help feeling that there is a conspiracy (well.. what is a forum without a conspiracy theory) between the industries to bully people into paying when they don't owe and that this is an accepted if not encouraged practice.
TBC
No doubt if you work at one of these places you'll probably have a fantastic credit rating (now that would make an interesting survey), but for the rest of us, we fall into at least four categories.
Those that pay regularly and never miss a payment (usually earn enough not to care too much)
Those that have fallen on bad times due to employment, ill health, etc. (the list is endless)
Those that the 'system' has completely messed up (the usual nightmare admin mistakes)
& Those that just dont want to pay.
What worries me is those that have a disagreement with a companies dealings with them (often because of bad admin which includes computer errors) are then hounded, harrassed, into paying by the threat of "Getting a BAD credit rating".
What amazes me more is that you now have to pay to LOOK at your credit rating!! So these people write stuff about you & you have to pay to see if its true. How did they get away with that?
Whatever is on there (rightly or wrongly) is considered gospel!
Amazing!! if not completely pathetic...and we all let it continue by doing nothing.
So I can't help feeling that there is a conspiracy (well.. what is a forum without a conspiracy theory) between the industries to bully people into paying when they don't owe and that this is an accepted if not encouraged practice.
TBC
History Teaches Us That, History Doesn't Teach Us
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Comments
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I've never paid for a credit file in my life. If you spend responsibly and live within your means you will never have any trouble with credit ratings. Even if you fall upon hard times through no fault of your own, there is help available to minimise any problems. The trouble is that some people just bury their heads in the sand then cry "not my fault" when the !!!! hits the fan later on. These are sometimes also the people why cry "irresponsible lending"
There is no conspiracy, and no, i don't work for any credit reference agency.0 -
Sorry Meer53 that is wrong, I have been trapped by the incompetence of British Gas who were unable to manage my account transfer and kept sending final bills based upon estimated readings! I refused and kept advising of the correct readings, 2 debt collection agencies tried to force me to pay and I advised both that if BG sent the correct bills I would pay. They both gave up and put a mark against me.
How is that fair or my fault?0 -
Sorry Meer53 that is wrong, I have been trapped by the incompetence of British Gas who were unable to manage my account transfer and kept sending final bills based upon estimated readings! I refused and kept advising of the correct readings, 2 debt collection agencies tried to force me to pay and I advised both that if BG sent the correct bills I would pay. They both gave up and put a mark against me.
How is that fair or my fault?
If a default is incorrectly applied, it can be removed. You should take it up with BG. If they are wrong they will arrange for the default to be removed.0 -
Yeah get all that, they are wrong. But i've been complaining about their incompetence and inability to present a correct bill for 12 months and only once you know about it can you do anything. Nobody asks you if it is correct you only find out once you get declined.
As such it is a flawed system, they should be required to at least inform the individual before they raise the mark. And only after this option for consultation has been offered should any comment be placed upon a credit record.0 -
Yeah get all that, they are wrong. But i've been complaining about their incompetence and inability to present a correct bill for 12 months and only once you know about it can you do anything. Nobody asks you if it is correct you only find out once you get declined.
As such it is a flawed system, they should be required to at least inform the individual before they raise the mark. And only after this option for consultation has been offered should any comment be placed upon a credit record.
Why did your case get as far as a debt collection agents ? It must have gone on for some time ? Could you have paid what you thought was the correct amount based on your readings ? Rather than refusing to pay anything ?
A lot of people fall into the trap of refusing to pay when something is in dispute without realising what the consequences may be.
This is on their website :
http://www.britishgas.co.uk/help-and-advice/Bills-payments/Trouble-paying/Sharing-information-with-credit-reference-agencies.html0 -
Why did your case get as far as a debt collection agents ? It must have gone on for some time ? Could you have paid what you thought was the correct amount based on your readings ? Rather than refusing to pay anything ?
A lot of people fall into the trap of refusing to pay when something is in dispute without realising what the consequences may be.
This is on their website :
http://www.britishgas.co.uk/help-and-advice/Bills-payments/Trouble-paying/Sharing-information-with-credit-reference-agencies.html
Basically blackmailing you then. Once they have your money, how much effort do you think they will put into resolving any dispute you may have?0 -
usefulmale wrote: »Basically blackmailing you then. Once they have your money, how much effort do you think they will put into resolving any dispute you may have?
Not blackmail. Most companies will apply defaults if payments are not made. It's not a huge secret.
The time to come to some agreement would have been before the debt collection agents became involved. This wouldn't have been kept secret either. BikerBud should have paid what they thought was the correct amount and if BG asked for more they should have gone to http://www.ombudsman-services.org/what-can-we-deal-with-energy.html with their complaint.
The default could have been avoided.0 -
GettinBetter wrote: »between the industries to bully people into paying when they don't owe
Try running any business. You'll then appreciate how prevalent late payment and non payments of bills is. Unfortunately it's human nature to take advantage. Mistakes made are a minuscule part of delinquent accounts.0 -
I think as a nation people are a little obsessed with the magic number. Debt essentially is when we want something yet can't afford it but we inherently become disappointed when the system says we aren't good enough to buy now and pay later. Some threads here bear witness to this "I've just completed my DMP and my credit crating is poor. Can I get a loan to improve it" yet these people don't need a loan.
I think the magic number makes people feel good. My rating is 4/5 yet I have never missed a payment and I use 2% credit that is available. This disappoints me. I don't know why I am not viewed as top credit worthy, yet I have a job spending my salary so either way I shouldn't care.
It's a very materialistic society we live in.0 -
Thrugelmir wrote: »Try running any business. You'll then appreciate how prevalent late payment and non payments of bills is. Unfortunately it's human nature to take advantage. Mistakes made are a minuscule part of delinquent accounts.
This^^
Non payment of invoices is a national disease.
The current system actually works pretty well from a consumer viewpoint. If you understand the system, it's idiosyncrasies and work the system you'll be fine.0
This discussion has been closed.
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