Can Debt Collection Agencies search credit searches without your permission??

[Forres]

Can a Debt Recovery Agency do a search with Equifax or Experian without your permission? And how do they manage to show up on your credit report?

I thought they had to have your permission before they could run a check or a search. Anyone have any ideas?

[natheyabdn]

Can a Debt Recovery Agency do a search with Equifax or Experian without your permission? And how do they manage to show up on your credit report?

I thought they had to have your permission before they could run a check or a search. Anyone have any ideas?

 

 

All Companies about to perform a credit search MUST get your permission either verbally or in writing.

 

 

Nathe

[Gingerheid]

Just guessing, but they probably get your 'permission' when you take out the arrangement?

 

"If you default, we may instruct agents who may....?"

[lookinforinfo]

There have been a number of threads running on this forum exploring

what DCAs and CRAs can and can not do with our data. The upshot

appears to be so far, that our consent is not necessary providing at

least one other condition in the Data Protection Act applies.

 

Bear in mind that when DCAs buy a debt, they inherit the original

agreement, and while it is a moot point whether that would allow them

to search [since consent to report defaults etc is usually included in

the contract] there are other options that do cover them when they

search our data.

[andy8]

They dont need your permission, The debt search is held on your file for 2yrs with equifax and 1yr with experian, Not sure about callcredit

[JonCris]

They DO need the debtors consent to proccess your data. The argument is have they obtained it when they purchased the debt.

 

My own view is that if the contract is terminated by the lender by disposing of it to another then the DCA does not have the right to process your data.

 

After all why would they, as the original creditor will have informed the CRA of your default status from the time problems 1st arose. Therefore what need is there to continue to proccess your data..........none

[lookinforinfo]

Permission is only one of six separate conditions that need to be satisfied tio allow a data controller to process ones data, any one of which is sufficient.

If you read Schedule 2 s6 it states in relation to allowing data to be processed-

 

"The processing is necessary for the purposes of legitimate interests pursued by the data controller or by the third party or parties to whom the data are disclosed, except where the processing is unwarranted in any particular case because of prejudice to the rights and freedoms or legitimate interests of the data subject."

 

It would be hard to argue that a DCA owning a debt did not have a legitimate interest in the debt.

[payingonlyencouragesthem]

I wonder if when they re-post the default under their name they can see your other data. Quite useful in my case if they can because they would immediately assume they were on to a lost cause.

[Rhia]

I have found that the DCA which acquired my debt registered a default in October last year and made a search on my credit report in June of this year. I have been in a battle with them to produce evidence of this debt and sent CCA & SAR but they have failed to reply in the time limits.

Last week I finally got the letter of assignation from the lender and a very poor photocopy of the agreement which is illegible plus statements.

I am about to raise a stink about all of this so were they wrong to register a default and search my credit report as they did not have any evidence to support their claim at the time?

[lookinforinfo]

Quote/Rhia=so were they wrong to register a default and search my credit report as they did not have any evidence to support their claim at the time?=

Quote

You don't say when the debt was assigned to the DCA. I confess I do not know how many different ways debts can be traded, but if I was in that kind

of business, one of the things I would want to know beforehand, if there was

any chance of

recovering a debt I was about to buy, and I would think that would qualify

as having a legitimate interest.

 

I have read so many threads about the placing of defaults prior to an

assignment of debts and I am no wiser now. I assume you are saying that

the DCA registered a default before they bought the debt, and I guess they

would not have given you the statutory 7 days notice either. While those

are grounds for the removal of the default, now that the DCA own the debt

is there anything stopping them applying a new default now, thus starting

a new six year period, when the present one is already over a year old.

[Rhia]

They bought the debt straight from the credit card company at the smae time they added the default so it's all October 2005. They are taking me to court over this and yet when they took out summons they had not supplied all the paperwork and as the copy of the agreement is so poor they still haven't. As there was no agreement with them it cannot be a default. Or can it?

[JonCris]

Permission is only one of six separate conditions that need to be satisfied tio allow a data controller to process ones data, any one of which is sufficient.

If you read Schedule 2 s6 it states in relation to allowing data to be processed-

 

"The processing is necessary for the purposes of legitimate interests pursued by the data controller or by the third party or parties to whom the data are disclosed, except where the processing is unwarranted in any particular case because of prejudice to the rights and freedoms or legitimate interests of the data subject."

 

It would be hard to argue that a DCA owning a debt did not have a legitimate interest in the debt.

 

Not really> Some here already have & won!

[lookinforinfo]

Jon Cris, I am aware that many on this forum have won claims against banks

and DCAs etc, but I do not recall anyone taking a DCA to court on the

grounds of wrongful processing under the above s.6 let alone anyone winning. Perhaps you would be good enough to point me to the relevant threads, as

it would be of great interest to me and the op at the vey least.

[lookinforinfo]

Rhia, please start a new thread as we may end up hijacking

Forres' question.

Not sure you are not confusing two separate events.

First the default. Zootscoot, I think, was of the opinion that as the DCA had

bought a debt, then as it was already in default, they were within their rights

to register it as such straight away if they so wished.

Second your court case. They should not have instigated proceedings

against you while the account was in dispute, and you should bring that to the courts attention right at the start of proceedings. To add further fuel,

you should point out that not only was the cca request late, [and perhaps

will require a court order to be reinstated?] but as the agreement is illegible,

the cca request has not even been fulfilled yet, so the account is still in

dispute and papers should not have been served on you.

 

But their court case I imagine will be to get a ccj against you to force

you to come to an agreement with the court to institute a repayment scheme, and nothing to do with the default. It is therefore vitally

important that you do attend court on the due date.

 

PS How far have they got with the court case?

[Rhia]

Sorry didn't mean to hijack just saw the topic so I'll keep this brief. Directions hearing end of Feb. Lawyer I consulted really thinks judge will strike it out for all the reasons you have stated. I think I need to update the court as these papers haven't arrived have started action with IC too. Will definitely defend. Thanks

[bigkacker]

I work for a dca we use experian to search for customers all the time. We buy the original agreement so as far as I am aware that is our authority to search.

 

If a DCA or anyone else does a credit search they can notify the credit bureau that they do not have your consent but the search is within the terms of The Data Protection Act. DCA's will usually perform a blind credit search without the customers consent and there will never be a record of this on your credit file.

 

I am not sure of the legality of this because we buy the original agreement from the creditor which gives us the right to search.

 

Any one else want any info on DCA's give me a shout because most of the time it's just a case of calling their bluff.

[djweeble]

we buy the original agreement from the creditor

 

Thinking cap on.

 

Does that mean the original agreement is actually still in force, or is it terminated before you buy it ??

[Guest The Terminator]

I work for a dca we use experian to search for customers all the time. We buy the original agreement so as far as I am aware that is our authority to search.

 

If a DCA or anyone else does a credit search they can notify the credit bureau that they do not have your consent but the search is within the terms of The Data Protection Act. DCA's will usually perform a blind credit search without the customers consent and there will never be a record of this on your credit file.

 

I am not sure of the legality of this because we buy the original agreement from the creditor which gives us the right to search.

 

Any one else want any info on DCA's give me a shout because most of the time it's just a case of calling their bluff.

 

If you buy the original agreement how is it that many creditors cannot supply it.Sounds rather dodgy to me.

[Gingerheid]

If you buy the original agreement how is it that many creditors cannot supply it.Sounds rather dodgy to me.

 

Different ones work different ways - efficient ones will get a 'welcome pack' with all the relevant info from the original lenders to congratulate them on their purchase of an, urr, uncollectable debt. Less efficient ones are dependent on the lender supplying them a copy of the agreement or any other documents if and when they ever actually have cause to ask for it.

[Sparkie1723]

Hi Forres,

 

Although consent must given in the first place and you give this when you sign an agreement with a Bank or creditor etc.....provided the agreement contains what is called a fair processing notice , some times the agreement does not contain this notice BUT if it is not it must be lodged with the ICO, and the creditor must make you aware of where this is.

after this consent is not required because another condition of the Data rotection Act is "legitimate interest" reason, although it could be argued that when the debt was bought, it was only the debt that was bought and not the original agreement because there is section inthe Legal Guidance given by the ICO that says that at the end of trading relationships i.e the contract you originally is no longer in place with the original creditor consent may be withdrawn, another point a Debt Collector can only search and hold information about you if they are registered with the ICO and have a license to process data. As I dont know all the case this might be of some help.

 

keep smiling

 

 

 

Sparkie1723

[bigkacker]

A DCA will rely on the customer not knowing their rights. Lenders are from my experience very careless in keeping paperwork etc... Iv'e lost track of the ammount of times a customer has requested their original agreement or default notice and it can not be retrieved. If everyone requested their original agreement from the lender the entire system would collapse overnight because the simple matter is the banks very often loose them.

 

The bottom line is a DCA will make it up as they go along and take advantage of the fact that 9 out of 10 customers are "muppets" and will not stand up to them. They will use harrasment, intimidation and idol threats to achieve what they want when the bottom line is they have no more power to collect the debt than the original lender, they are just somewhat less diplomatic about it.

[tifo]

i don't think they have consent to do a credit search.

 

the debtor gives consent to the bank at the time of the application, and thats it.

 

i have read somewhere that consent for a credit search is required everytime this is done, as the debtor needs to be aware for the reason.

 

even multiple searches have an affect on the credit files as it shows the debtor is 'potentially' applying for credit.

[JonCris]

Hi tifo

If the original agreement is terminated, as is usual when defaulted, then no one has the right to do a credit search.............no matter what they might claim

[tbern123]

Thinking cap on.

 

Does that mean the original agreement is actually still in force, or is it terminated before you buy it ??

 

If the debt is sold (assigned to a DCA) for the purposes of the act they becomes the creditor.

 

If you read some of the other threads, when a debt is sold, it does not automatically mean the agreement is terminated. DEFAULT is completely different to TERMINATED

[JonCris]

An awful lot of defaults refer to the agreement being terminated if the debtor does not comply.............so default can mean terminated