Bankruptcy blacklist
Question
I was made bankrupt a while ago but I've now been discharged. The only problem is my house was blacklisted while I was bankrupt and I don't know if it still is. How do I find out if it's off the blacklist and, if it's not, is there anything I can do to get it off?
Answer
There were guidelines laid down in 1993 about redlining (a system where a lender draws a 'no credit' ring around a certain area or address, e.g. a block of flats, a housing estate, or a particular street, and refuses credit to anyone solely because they live within this boundary). However, under The Guide to Credit Scoring 2000, lenders must not refuse credit solely on the grounds of place or area of residence. The Office of Fair Trading cannot take up individual complaints about redlining, but they may take a complaint into account when deciding whether to issue or revoke a company's credit licence. If a client suspects that they have been refused credit just because of redlining, they should contact the Financial Ombudsman Service.
Now the credit reference agencies keep a list of people (such as yourself) and it is this list that is consulted by credit providers when they make a credit reference check. You can ask to see your credit history under the Data Protection Act and, if it contains anything that's incorrect, you can ask to have it changed or updated. The main credit reference agencies are Experian Limited (tel: 0844 481 8000), Equifax plc (tel: 0844 335 0550) and Callcredit plc (tel: 0870 0601 414).
Having checked to see what's on your credit file, you'll still need to rebuild your credit worthiness, but it's worth knowing that this can take some time. To do this, it's suggested you consider ordering something small from one of the catalogue companies and pay off the amount straight away. This will register with the credit reference agencies, so the process of rebuilding your credit worthiness will start.
Once you have done this on several occasions with several companies, you may want to consider a small purchase using 0% finance over a six-month period. Again, this will be registered and will go towards rebuilding your credit rating. As you gradually prove to the credit reference agencies that you are a responsible borrower, your ability to use credit will grow.
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Question answered by CAB
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