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FOS case studies – credit files and credit reference agencies
case studies – credit files and credit reference agencies
Although awareness of credit files has grown over the past few years – largely in the context of debt and financial difficulties – they remain something many people don’t really think about. And yet credit ratings can have a huge impact on people’s lives – affecting activities ranging from mortgage and loan applications, to taking out mobile phone contracts and credit cards.
Credit reports mostly operate in the background – away from people’s day-to-day attention. So it’s understandable that many consumers don’t know how their credit report works or what’s kept on it – and people often don’t realise there’s a problem until it’s too late. It’s only when trying to apply for some form of credit that they discover their credit rating is a stumbling block.
So the correct and responsible handling of credit files is very important – as incorrectly-recorded information or delays updating a file can have considerable knock-on effects.
We inevitably see complaints about the administration of credit files. For example, we see cases where a consumer has cancelled a subscription – sometimes after a free trial – only to find their request hasn’t been processed, and they’ve ended up with a mark on their credit file.
However, in the case studies that follow we share some of the common, but less
well-explored areas of confusion we see in complaints involving credit files. These range from problems with joint-accounts and payment plans – to consumers finding they can’t get credit because of the information held about them.
Another area we look at is poor communication – or the absence of communication – between credit reference agencies and other financial businesses. This can sometimes lead to consumers being disadvantaged. And as the case studies show, the language of credit files and credit reference agencies is very important too – as many people struggle to understand the reasons behind what’s happened with their credit files.
More...
Although awareness of credit files has grown over the past few years – largely in the context of debt and financial difficulties – they remain something many people don’t really think about. And yet credit ratings can have a huge impact on people’s lives – affecting activities ranging from mortgage and loan applications, to taking out mobile phone contracts and credit cards.
Credit reports mostly operate in the background – away from people’s day-to-day attention. So it’s understandable that many consumers don’t know how their credit report works or what’s kept on it – and people often don’t realise there’s a problem until it’s too late. It’s only when trying to apply for some form of credit that they discover their credit rating is a stumbling block.
So the correct and responsible handling of credit files is very important – as incorrectly-recorded information or delays updating a file can have considerable knock-on effects.
We inevitably see complaints about the administration of credit files. For example, we see cases where a consumer has cancelled a subscription – sometimes after a free trial – only to find their request hasn’t been processed, and they’ve ended up with a mark on their credit file.
However, in the case studies that follow we share some of the common, but less
well-explored areas of confusion we see in complaints involving credit files. These range from problems with joint-accounts and payment plans – to consumers finding they can’t get credit because of the information held about them.
Another area we look at is poor communication – or the absence of communication – between credit reference agencies and other financial businesses. This can sometimes lead to consumers being disadvantaged. And as the case studies show, the language of credit files and credit reference agencies is very important too – as many people struggle to understand the reasons behind what’s happened with their credit files.
More...
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