Who can do a hard search? Just about anyone?

The last part of the discussion in this thread from the credit card board should give cause for concern:


http://forums.moneysavingexpert.com/showthread.php?t=5788462


It would appear that the ability to carry out hard searches against an individual is much less restricted than I thought it was.


Maybe the Experian rep can explain just what's going on here?
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Comments

  • A company who will be providing you credit can check information held by a credit reference agency - what is wrong with that?

    Companies can't just do random checks on people without their consent and with revised data protection laws coming soon it will become even more explicit what those companies do with your information.
  • tenchy
    tenchy Posts: 486 Forumite
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    A company who will be providing you credit can check information held by a credit reference agency - what is wrong with that?

    Companies can't just do random checks on people without their consent and with revised data protection laws coming soon it will become even more explicit what those companies do with your information.


    You need to read the linked thread for details about the point I'm making.
  • I am not surprised by this at all. CRAs are in it for the money, the same as any other company. They make money from people who pay to see their own credit report, money from companies doing searches and, more recently, by acting as credit brokers when people take up their free credit score offer. Of course the companies who search have to be registered and, no doubt, go through some sort of vetting process but, in the end, the more companies that register to search, the more money the CRA makes.
    There is a similar relationship between DVLA and private parking companies. I think I remember reading that it costs them a measly £2.50 to find the registered owner and address of any vehicle.
    I came into this world with nothing and I've got most of it left.
  • I think you're looking a bit too much into this.

    Businesses have access to and the rights to do it - not normal everyday people
  • tenchy
    tenchy Posts: 486 Forumite
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    !!! wrote: »
    I think you're looking a bit too much into this.

    Businesses have access to and the rights to do it - not normal everyday people


    Well, credit-providing businesses, I would say. And it was my understanding that to qualify for carrying out credit searches a company had to provide regular account data to the credit files. This seems no longer to be the case and it's more of an open book.
  • System
    System Posts: 178,093 Community Admin
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    tenchy wrote: »
    Well, credit-providing businesses, I would say. And it was my understanding that to qualify for carrying out credit searches a company had to provide regular account data to the credit files. This seems no longer to be the case and it's more of an open book.

    But the poster on the other thread does provide credit. His business sells products to people, and they don't have to pay for those products for a certain period of time. That's selling products to people on credit. This is very common, and businesses across the country credit check people before they sell to them on credit. Providing credit doesn't just mean lending money.

    The business still needs the consent of the person whose credit file they're checking, and if they did a search without permission, they'd presumably be in trouble.
  • tenchy
    tenchy Posts: 486 Forumite
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    Okay, let me get this right then. Any business that subscribes to - say - Experian can carry out a hard credit check against any individual "with their permission" and that business doesn't have to contribute rolling account data to Experian?


    I thought access to credit reports was limited to those organisations that provide account updates to the credit reference agencies. Hence why your average letting agent can't do a full credit check on potential clients, for example. Have the rules changed recently?
  • bazzyb
    bazzyb Posts: 1,584 Forumite
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    tenchy wrote: »
    Okay, let me get this right then. Any business that subscribes to - say - Experian can carry out a hard credit check against any individual "with their permission" and that business doesn't have to contribute rolling account data to Experian?


    No. Only businesses who provide credit.
    tenchy wrote: »
    I thought access to credit reports was limited to those organisations that provide account updates to the credit reference agencies. Hence why your average letting agent can't do a full credit check on potential clients, for example. Have the rules changed recently?

    Rules haven't changed. Letting agents don't provide credit.
  • tenchy
    tenchy Posts: 486 Forumite
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    bazzyb wrote: »
    No. Only businesses who provide credit.



    Rules haven't changed. Letting agents don't provide credit.


    Yes, I meant that. But do they not have to provide credit account data to the bureau? I thought they did.
  • bazzyb
    bazzyb Posts: 1,584 Forumite
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    tenchy wrote: »
    Yes, I meant that. But do they not have to provide credit account data to the bureau? I thought they did.

    Not sure how many answers to the same question you would like, but refer back to posts 2, 4, 7 and 9. They need to be a business that provides credit to a customer to do a hard search. If they are an intermediary such as a broker, they can only do a soft search. There is no requirement to provide account data back to the bureau in return.
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