Consumer Credit Rating AgenciesCredit rating agencies for consumers
. Your bad credit rating. Everybody has a credit rating - but this is usually concealed. The Data Protection Act 1997 now allows you to obtain your credit rating from a credit bureau such as Equifax and Experian for a £2 charge. Consumersc cannot transfer information from trusted arbitrators such as landlord credentials, rental fees, manager referrals or payroll statements to your credit rating.
However, a number of less trusted businesses - such as wireless and on-line credit cards businesses - can tap into and change simple people's credit scores. Debt for minute sums can lead a business to make a statement of creditworthiness and ruin a customer's claim.
Also after the fault has been repaid and the error corrected, the firm can still decline to eliminate the bad news that remains on a credit rating for 6 years. As a result, a consumer who has a bright paycheck, who always earns rental on schedule and keeps good financials could get a badge against his name if he changes addresses, spends 7 pounds on a canceled Amazon credit cards, checks an auto insurer or forgets to make an 02 telephone bill.
Consumer may be rendered unfair by associations when they are sharing invoices with a roommate or associate who has a bad rating. Also, a flaw - such as when Virgin Media accidentally listed a 30 pound indebtedness on Yvonne Oliver's impeccable consumer rating - can wreck the creditworthiness of "innocent" clients and mean that they are losing their mortgages, banks or good names.
Often businesses do not make it their business to tell customers about their intentions to spoil their creditworthiness. That means that often it is years later that individuals learn of their dubious valuation and get a bad shake when they try to hire a home loan or a rental vehicle. In order to find out what went badly, a client has to turn to a credit agency - a vulture through and through.
In the client company's own processes, credit bureaus such as Experian and Equifax have proven to be essential without having to be precise, equitable, accessible commercially or transparently. They are the real buzzards of the banking world. Credit agency law in this land is far outdated - a Data Protection Act of 1997 and a Consumer Credit Act of 1974.
The EU adopted new rules this summer to make it more difficult for credit rating agencies to exclude Member States - and it is high time that they adopted rules to prevent smaller credit agencies from falling victim to normal people. Rating is an important civil servant, an important indicator that creditors can choose with whom they do business as well as that accountable customers have more credit.
What we need is adequate, up-to-date regulation to govern who can put people's credit scores in the red - and a consumer credit builder to contest companies' accounts. It is also important to ensure that customers have free of charge file sharing (as in Canada) and can add accurate finance information such as salaries and rents to their credit rating.
In the absence of these new rules, credit bureaus will continue to publish imprecise and dishonest information on customers' bank account, credit institutions will continue to reject creditors - and credit sharks will continue to do very good deals.