Discredited
Question
I have applied for credit twice and been rejected both times because of a bad credit history, even though neither I nor my partner have ever failed to pay our debts. Why can't I get credit, and is there anything I can do about it?
Answer
When you try to buy something on credit, information on your credit history will almost certainly come from one of three credit reference agencies. Mistakes can happen, but the good news is that, under the Consumer Credit Act 1974 and Data Protection Act 1998, you have the right to know what information is held about you.
The agencies are: Experian (0870 241 6212); Equifax (0870 010 0583); and Callcredit (Tel: 0870 060 1414). You can ask the lender to whom you applied for credit which agency they used, but to be on the safe side you might want to contact all three to check what they have about you on their records.
The agencies can charge up to £2 to provide your credit report in response to a written request - phone or online services, or more detailed reports, might cost more. They must either tell you that they have no information, or send a copy of the file and a statement of your rights. This statement will describe in detail how to have the file corrected. A copy of the file must be sent to you within seven working days of the agency receiving your request. If you do not receive a copy of the file within seven working days, or do not receive a response to a subsequent query within 28 days, you can complain to the Office of the Information Commissioner.
You should check the file carefully. If the details are wrong, you can write to the credit reference agency asking it to amend or remove the details. If the amendments are about the credit account information supplied by a lender, you should contact the lender who provided the information - the credit reference agency can't change information provided by a lender without the lender's authorisation. The credit reference agency will give you the name of the person to contact at the lending organisation.
The agency must notify you within 28 days that it has amended or removed the details or decided to take no action. If the entry has been amended, a copy of the new file must be sent to you.
If you need any more help, you can contact your local Citizens Advice Bureau (CAB).
Good answer? Bad info? Want to tell us what you think? We'd really like to hear what you've got to say about this answer so please click here to take the survey. Your feedback is confidential and as anonymous as you like.
Question answered by CAB
Print this page Email this page to a friend Add to favourites
