Rental Exchange

[gd47]

Hi,

 

Just had a letter from the local council saying they are going to participate in the "Rental Exchange" scheme with Experian.

 

Perhaps I'm being a bit over concerned, but the mention of Experian, council and sharing information immediately makes me extremely cautious!

Should I opt out from this scheme?

 

Incidentally, I have never had any rent arrears, so in theory should have nothing to worry about.

Additionally, I wonder how much the council is making out of the deal, given that neither Experian nor the local council are world-renowned names in the field of philanthropy.

Edited March 1, 2018 by Andyorch
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[silverfox1961]

Hi

Irrespective of whether there is any financial benefit to councils/landlords, I too would be worried. Yes, I see some benefits but the negatives may outweigh the good.

 

If the housing information was included in a credit report, lenders would see whether the rent is being paid-in full and on time. With Universal Credit, most tenants will be responsible for paying their own rent. This is (IMO) a good thing but, what about those that pay in full but a bit late? Would a late payment marker be placed against the tenant? (not so good)

 

How about those who pay rent in two instalments a month? A late marker every month will be placed and will make lenders more cautious as to whether to offer a loan even though the tenant can easily pay the monthly charges.

 

There is very little info on the Experian site to explain these issues. My credit file is fairly good but is held back by my not having (nor wanting) a credit card. I could get a card with my rating at the moment and have a good interest rate as well. I would hate it if my rating was hit when I forget to pay my rent on time (a regular thing with me).

 

As it stands and if/when I get contacted, I wouldn't want to enrol.

[stu007]

Hi

 

I have to agree with silverfox1961 I know a lot of Councils/Housing Associations are trying to bring this in under the pretext of a financial benefit to improve your credit file.

 

My own Housing Association tried this and it backfired on them.

 

I certainly would not give them my permission to share information

 

Does the letter you got at all mention the General Data Protection Act coming into force on 25th May 2018 and your rights.

 

The GDPR provides the following rights for individuals:

 

1. The right to be informed

2. The right of access

3. The right to rectification

4. The right to erasure

5. The right to restrict processing

6. The right to data portability

7. The right to object

8. Rights in relation to automated decision making and profiling.

 

https://ico.org.uk/for-organisations/guide-to-the-general-data-protection-regulation-gdpr/

[ericsbrother]

To answer your query about how much the council make out of this the answer is nothing in cash terms.

 

I would however bet that they then get free access to your credit files so if you do a runner without paying the gas bill they will come looking for you as well as the gas co. This is all a govt wheeze tohelp solve a problem by creating a bigger one.

 

The council and the govt seem to have forgotten why you have a credit file and it isnt to show you are a good payer, it is so people can lend you money and make a profit from you and paying your rent wont affect this one bit

Edited March 1, 2018 by Andyorch
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