Written by John Kruse, one of the leading experts on Bailiff Law, this consumer friendly guide is essential reading for anyone who comes into contact with a bailiff.
The book is easy to understand and clearly explains the rights
a bailiff has, and also what they cannot do when collecting debts and repossessing goods etc.
Credit Reference Agencies (CRA) are a reality of modern day life.
In an ideal world these agencies should act to protect both the consumer and companies that use them alike. They should act for a means for the companies that give credit to analyse the borrowing of a consumer and for the consumer to benefit from reasonable lending from those companies that takes into account the history of the borrow and the amount that has already been borrowed.
The reality though is different to this, they are used are as means of punishment by lenders and reflect the habits of customers going back over 6 years which in the majority of circumstances does not reflect the customers present situation.
Once over the records on that the Agenises kept only where only available to lenders, but more and more these records are being used by prospective employers and used in the employment selection, and by rental companies when making the decision to rent a home to families.
What this in fact does is that a young man at university who used a student credit card that defaulted, up to 6 years after that default was issued has no access to competitive mortgages and also has a large section of the rental market withheld to him. Yet this could does not reflect his present circumstances, where he may well be married with children and earning a decent wage.
I personally believe that the goal posts in this county on home-ownership and employment have been moved without the public or government noticing.
The only way to control the Credit Reference Agencies is though an Act of Parliament that controls whom can access this information, what information can be collocated, the time scales of this information remains searchable, and a removal process that is in itself has finality and is fair to both the consumers and companies that use the registers for it can no longer be used as a way of punishment by companies but reflects up to date information in a balanced and fair manner.
I have outlined what I believe to be a balanced use of such systems that should work for all involved.
1. Defaults are presently keep on record for 6 years regardless is paid in full or not.
a. I purpose that defaults should remain on a person’s file for a period of 12 months after payment in full and after the 18 months all records of the account should be removed and under no circumstances should be present after a period of 6 years after.
2. Account history are presently record over a period of 6 years, the last 6 years history is recorded regardless of the fact the account is still open or not.
a. I purpose that account history should remain the same for active accounts (being the last 6 years history is reported) and for closed accounts that the history of the last 6 years remains in place for 18 months at which point all records of the account should be removed.
3. CCJs are presently recorded for a period of 6 years and are marked unpaid or paid from the date of the judgement, if a judgement is paid within 30 days it is not recorded on the public register.
a. I purpose that CCJs should remain the same for unpaid judgements/judgements paid within 30 days of the judgement and for judgements paid after 30 days that the judgement remains in place for 18 months at which point all records of the account should be removed.
Added 15:30 22/02/07
Who can search the registers?
To confirm address and/or identity verification,
Anyone who is a data controller and where the person has given permission.
These should be Unrecorded Enquiries that are shown for you on your copy of your report but are not seen by anyone else. Also they should have no access to any payment history, but simply have their enquiry confirmed or unconfirmed.
Account history.
Simply that account history can only be searched by companies with a consumer credit licence and where the company would not need a consumer credit licence due to the nature of the loan or credit it will be still a essential to hold a consumer credit licence to search the registers, and this can only be searched where the person has made an application for credit or to stand as guarantor. Under no circumstances can a prospective or present employer (or in fact a former) search the account history register.
Applying for or holding credit will be critical to searching the register, (as home rentals on the hole to not give credit they will only be able to search “address and/or identity verification”).
Automatic searching or the register by lenders will be forbidden once credit is extended, and can only be searched again with the express permission of the person, this permission cannot be wavered, by contract or advance permission and any permission gained will only apply for 21 days and for one search only of each of the resisters.
I think you are right to propose this - there are a lot of things that you say that are right and also unfair:
The student, wild in his student days, should not find barriers once he has settled down in a job
The single mum, struggling whilst bringing up toddlers, should not find barriers once she has returned to work
The person who has suffered hardship whilst ill or convalescing, should not find barriers once their lives have returned to some level of normality
These are "normal" people, every one of us probably fits into one of these categories. As you say, CRAs should be there for reference, but the reality is they are there to punish...
Change is needed, and hopefully it can be initiated in tandem with a sea change in banking/credit policies...
Alecto, Magaera et Tisiphone: Nemesis on Earth is come.
All advice and opinions given by Spiceskull are personal, and are not endorsed by Consumer Action Group or Bank Action Group. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
This is a winnable fight, what we need is a reasonable argument to put forward to MPs and Lords. I would really love peoples views on the proposed rules, and then those who are determined to see it though, all singing from the same hymn sheet.
The person who has suffered hardship whilst ill or convalescing, should not find barriers once their lives have returned to some level of normality
This is what is happening to us. We were subject to a horrendous time with a noisy abusive neighbour who destroyed our life, damaged our health and left us in debt. I'm now trying to recover, but have been refused a company bank account because of entries on my credit file. I am not asking for any credit, but I have been refused a company current account and deposit account. I have money owing to me, but am unable to bill because of this. I am currently taking action to clean up my credit report, however our recovery is in limbo because of this absurd situation.
I think closed accounts shouldn't stay for 18months, that's seems too long, defaults should be removed before ccj's as at least ccj's can be argued in court and there is usually some redress/defence available. Defaults at the moment hold a similar weight to ccj's unfortunately.
Barclaycard Student credit card £400 partial refund received, S.A.R - Open & Direct Finance- extortionate, cca to Rockwell debt collection they ran away, now with Bryan Carter, no cca 17/03/08 sent back to Open Pugsley v Littlwoods, have not received the signed credit agreement only quoting reg of 1983
Pugsley v Fashion World JD williams, 17/03 2008 Debt Managers returning file to JD williams as they could not supply the credit agreement Capital one MCOL Settled in full Smile lba settled in full advice is given informally and without liability and without prejudice.
Proposed reform of Credit Reference Agencies
which in the majority of circumstances does not reflect the customers present situation.
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Originally Posted by The_Phoenix
