DCAs Searching Credit Files - What are their Rights?

[Ruprecht]

Like any Jones or Smith that has a common first name too, I have had my credit file searched by a debt collection company seeking someone else.

 

Sometimes these searches are an Equifax Table 1 "Outstanding Debt" search and stay on your credit report for 2 years and may not have anything to do with you. (Any idea how many "David Smiths" are born each day?")

 

I fear such searches on the report could effect a credit score or for instance if you apply for a mortgage and they search you and they see someone has looked at your file looking for someone for "outstanding debts" it can't be seen in a positive light.

 

I am curious as to what information the DCA gets when they search your file in this manner and how they can legally search it.

 

I realise that any credit agreement anyone enters into, be it a loan, mobile phone, bank account, credit card, mail order, store card, etc. you sign to say your data can be used to "trace debtors". This is a cartel agreement, no credit agreement exists that doesn't contain this term and if you do not agree to this term your application will be rejected.

 

So does having any sort of credit account imply that you agree to your personal data being used to trace a debtor, even if it is not yourself and no connection to yourself?

 

What agreements do the creditors have with the CRAs with regards to this? How much personal information do the CRAs give out.

 

I am concerned how my data is used and I do not trust DCAs. I do not see why they should have access to my data when I am not the real person they seek.

 

There is no getting out of it, no credit agreement exists without this clause.

[silverfox1961]

Hi

A creditor can only access your credit file with your permission. A DCA can only look at your file in regards to a debt that you owe.

 

I would be writing to Equifax demanding the table 1 searches be removed and if you know the details of the DCA who looked, write to them too.

These searches do have an impact when legitimate creditors look at your file when deciding to offer credit or not

[Ruprecht]

Hi

A creditor can only access your credit file with your permission. A DCA can only look at your file in regards to a debt that you owe.

 

I would be writing to Equifax demanding the table 1 searches be removed and if you know the details of the DCA who looked, write to them too.

These searches do have an impact when legitimate creditors look at your file when deciding to offer credit or not

 

I know the searches can be derogatory and I do always get them removed (eventually).

 

Any credit application has the clause they can use your data to "trace debtors".

 

So this clause which is included in every single credit application/agreement out there might be what a DCA relies on when they do a search on say "anyone called David Smith born 01/01/75"

 

So I am thinking the DCA can pretty much legally look at your file if you have the same name and DOB as a debtor they seek based on the fact that when you opened any credit account you agreed that your data could be used to "trace debtors".

 

It seems too much of a wide power for them to have, especially as there are many William Smith's, etc born on the same day each year.

 

They need to add another stage when a DCA performs a search, not only do they need a name and DOB but they should be obligated to supply a "connected address" so as to rule out these unwarranted invasions of privacy of individuals with the same name sharing the same date of birth.

[slyspy]

equifax seem particularly bad at allowing dca's to do table 1 searches

 

I'm currently battling with them trying to get some that are more than 1 year old removed (they state on their webpage that all searches are removed after 1 year) yet these DCA table 1 searches never seem to be removed

[silverfox1961]

When you open a credit account, you are giving permission for that one creditor to look at your file but they also say they may pass your details on to a third party. What it doesn't give a creditor is the right to go carte blanche looking at anyones file just because they have the same name or even DOB. They have to be fairly certain of the debtor in question before going to the CRA's.

 

We all know they don't give due diligence when tracing debtors and they will trawl CRA files but because joe public don't know their rights, they get away with it.

[2Grumpy]

And even when we know that they don't have the right to search your credit file, they still get away with it - who is going to stop them or even give them a slap on the wrist?

[slyspy]

equifax removed the table 1 searches today as requested, took them about a month.

[Blondmusic]

I would write to the DCA that put those searches on Table one of your credit file and demand compensation for the damage they caused. I did it with Mackenzie Hall after they put 14 searches on Table One of my credit file and they paid me compensation

[Ruprecht]

equifax seem particularly bad at allowing dca's to do table 1 searches

 

I'm currently battling with them trying to get some that are more than 1 year old removed (they state on their webpage that all searches are removed after 1 year) yet these DCA table 1 searches never seem to be removed

 

You are right about Equifax. All my past problems have been about searches they have allowed without my permission, no other CRA.

 

I think they own Wescot, a DCA.

 

O2 have done a credit search on me with them last week and I have never had anything to do with O2. I think it might be some sort of marketing

search/trawl Equifax have allowed but they have recorded it as a Table 1 Credit Search.

 

I keep asking what information they are providing to these 3rd Parties and if the 3rd Party provided my correct DOB before they released it.

 

Never get a clear reponse from them.

 

Also, even if you subscribe to their credit report service for a monthly fee they never answer their landline and take 5 or 6 weeks to respond to an

online query which is usually some out of the country agent that gives a generic response. Dreadful service.

Edited February 8, 2011 by Ruprecht
Also...

[straftat]

i have a debt in dispute with cabot , they keep farming it out to varoious DCAs

 

2 of these DCAs have done table 1 searches on me ( Clarity and Makenzie Hall)

 

heres the response i got from Equifax from Clarity

 

The company has investigated your query and have told Equifax that the information is correct and should remain unchanged. This search relates to an MBNA account which was sold to Cabot Financial. Cabot Financial asked Clarity Credit Management to confirm the address of ***My address**

 

This information is supplied by the company and we can't change it without their permission. You should get in touch with the company directly if you need more information.

 

 

ive contacted Claritys compliance manager and they wont remove the table 1 search

[Ruprecht]

i have a debt in dispute with cabot , they keep farming it out to varoious DCAs

 

2 of these DCAs have done table 1 searches on me ( Clarity and Makenzie Hall)

 

heres the response i got from Equifax from Clarity

 

The company has investigated your query and have told Equifax that the information is correct and should remain unchanged. This search relates to an MBNA account which was sold to Cabot Financial. Cabot Financial asked Clarity Credit Management to confirm the address of ***My address**

 

This information is supplied by the company and we can't change it without their permission. You should get in touch with the company directly if you need more information.

 

 

ive contacted Claritys compliance manager and they wont remove the table 1 search

 

They probably do a Table 1 search to see if you are worth chasing (to see your current credit situation) ......

 

Then pretend it was an error....

 

Can the DCA do a proper credit check legally I wonder? If the account is active the creditor can check you as much as they like I believe, but once it is deado I wonder if they can continue doing that seeing as no more credit is on offer?

 

Edit:

 

I am talking about a proper credit check BTW not just debtor tracing etc.

Edited March 28, 2011 by Ruprecht
extra info

[straftat]

well i have yet to recieve a responce to my CCA request to Cabot from 3 years ago but they can still get other DCAs to do table 1 searches?

 

i think the Mackenzie Hall one was even after the account was statute barred

[straftat]

is there a formula to follow to get these off?

[247orbital]

I was under the impression that DCA's cannot search your CF once a debt becomes SB? Is this correct, after 6 years they no longer have my permission to process my data.