Disclosure & Use Of Your Information.
It is important you read the following information,
this explains how your data will be used.
Data Protection - updated 1/12/00.
In simple terms the Data Protection Act requires companies
and individuals who process and retain information
about their customers to tell the customer how the
information will be used and to what purposes it will
be put.
The act does not restrict itself only to information
kept on a computer, it is relevant to any ordered
filing system, If you have applied to a FISA company
the information below describes how your data will
be processed. If your information is to be processed
differently the trader will tell you.
Credit Brokers
If you have applied to a credit broker they will use
the information you have provided to:
· Process the application you have made;
· Make, or cause a search to be made, at a
credit reference agency (see the note further on)
- this search will be shown in any other searches
which are made in connection with applications made
by yourself and other members of your household. The
disclosure of multiple searches may adversely affect
your credit profile and may make credit harder for
you to obtain.
The broker may also use the information:
· To offer you other products which they make
available;
· To pass your details on to a lender or lenders
they feel may be willing to lend you money;
· To pass on your details to another broker,
if your broker is not able to arrange finance for
you;
· To write to you in the future with a view
to offering you products they feel may be of interest
to you;
· To pass your details to another broker in
the future with a view to them offering you products
they feel may be of interest to you;
· To permit access to your information by the
FISA or other regulatory bodies to ensure that the
broker is processing information correctly and complying
with regulatory requirements.
The broker may keep the information for several years.
You can ask for the information not to be used to
offer you other products.
Any other broker or lender to whom the information
is passed during processing your application may use
it in the same way. Every company or person who processes
or keeps data has a duty to keep that information
up to date and accurate.
Lending Companies
Use of information when application is being processed.
Lenders to whom the application is passed will make
wider use of the information than the broker. If you
have received any lender documents, they should include
a statement telling you what they will do with the
information, or telling you where to look to find
out what use they will make of it. This statement
will usually be near any signature box, or clearly
placed on the front page. If the information is not
by the signature box there may be an 'information
padlock' sign (like the one above) drawing your attention
to where the information is.
Almost all lending companies will check the information
supplied on loan or mortgage applications with data
held by credit reference agencies. Every time a search
is made it is recorded by the agency and disclosed
to other organisations on any later searches. Lenders
will use the information obtained in the credit reference
search to help them assess the application and they
may use the result of any search in a credit scoring
system.
A credit scoring system is a system by which points
are given for various factors like your age, your
job or even for information obtained from a credit
reference agency, such as how you have repaid previous
or existing credit. Lenders use different methods
of scoring depending upon their interpretation of
the importance of different factors and the level
of risk they are willing to accept.
You should be told if a lender is going to use a credit
scoring system.
The lender may check your details with the credit
reference agency or with other agencies (see pages
24 and 25) to satisfy itself that all the details
on the application are true, and that the application
has really been made by you. If it suspects information
is false or inaccurate it may report it to a fraud
prevention agency. Please ensure the information you
give is true as lending companies will check with
fraud prevention agencies and if you give false or
inaccurate information, and the lender suspects fraud,
it will record this.
NOTE - OTHER AGENCIES SEARCHED
As well as the credit reference agencies, there are
agencies dealing specially with the checking of application
details to identify possible fraud. This is a protection
for honest applicants, although it can sometimes cause
delays. Details of these other agencies, and a brief
outline of their purpose, are given further on in
this text.
Nobody has a right to receive a loan. Loans are always
granted at the discretion of the lending company.
What if my loan application is not accepted?
Sometimes a lender may not wish to lend. This may
be for a number of reasons.
The lender may think you cannot afford the loan. If
it is a secured loan, your property may not be of
sufficient value.
A lender does not have to tell you exactly why you
have been refused a loan but you can ask them for
the name and address of any credit reference agency
used and they will supply this information free of
charge.
If you are refused credit because of a computerised
credit scoring system you can ask the lender for an
explanation of how their credit scoring works (this
applies only if the decision has been made on the
basis of a computerised system alone.)
The lender may charge a small fee for providing this
information, You also have the right to require a
personal, non automated, review of the decision.
Use of information once a loan has been made
All lending companies keep information about their
customers in their own records. This will include
all the initial information given by you, and extra
information about how your account has been run and
any other dealings between you and the lender.
Lenders will record the conduct of any loan throughout
its duration, including how punctually the payments
are made and other information, with one or more of
the credit reference agencies. This enables them,
and others to make decisions about credit and credit-related
services for you and members of your household including
decisions on motor and household credit, life and
other insurance proposals and insurance claims.
Information may also be provided to the other agencies
mentioned further on. These will help lenders and
other subscribers to those agencies to trace debtors,
recover debt, prevent fraud and to check your identity
to prevent money laundering. In particular, any difference
between the information given by you or your broker
and any later information discovered by the lender
is likely to be noted.
Lenders may also use your information for statistical
analysis about credit, insurance and fraud. This may
be done by them or by third parties contracted to
do the work by them. If they use a contractor, they
are obliged to ensure that your data is properly secure.
Many lenders will also need to give information about
you and your account to their bankers, other providers,
insurers and re-insurers of funding for their lending
or any other product they have offered to you.
If your broker or lender intends to use your information
for any purposes not included above, it will explain
this in its documents.
Brokers and lenders are under a legal duty to keep
all the information they hold accurate and up to date.
Credit Reference Agencies
The two main credit reference agencies are:
Equifax Plc
Credit File Advice Service
PO Box 3001
Glasgow, G81 2DT
Experian Limited
Consumer Help Service
PO Box 8000
Nottingham, NG1 5GX
All the FISA lending companies use one or both of
these agencies.
The agencies do not keep 'blacklists' nor do they
give any opinion about whether or not credit should
be granted. They do have a duty to keep information
up to date and accurate.
Credit reference agencies keep a wide range of information.
This includes information from the electoral roll
(sometimes known as the voters roll) and records of
most county court judgements and bankruptcies. They
also retain information relating to previous and existing
credit and a record of searches made against the file.
The lenders share information through the agencies
providing a history of how punctually payments are
being made or have been made. Loan information is
usually held on file for 6 years. Details of the voters
roll may be held for much longer. Information about
credit searches is kept for up to two years.
Other Agencies
CIFAS
Reports from CIFAS relating to fraud and fraud avoidance
are also available to its members (most lenders) -
these contain information indication that fraud, or
attempted fraud, has been notified by a lender. The
information might not directly relate to you, it might
relate to someone who has tried to impersonate you.
Data available to members of CIFAS, may also be used
to help make decisions on motor, household, credit,
life and other insurance proposals for you and members
of your household.
CML Repossession Register
The Council of Mortgage Lenders, Repossession Register
is available to its members through the main credit
reference agencies. If you have had a property repossessed
or have given it up voluntarily this will show on
the register.
GAIN
A file may also show a 'gone away' marker indicating
that a member of the ' Gone Away Information Network'
has reported that they cannot trace a customer who
is in arrears with payments. Alternatively, the marker
may indicate a new address which the 'gone away' has
been traced to.
HUNTER
Files in this register contain detailed information
on applications made and loans given. It is aimed
at tracing fraudsters who use different combinations
of information to obtain credit dishonestly. It checks
and counter checks information given on application
forms.
If your broker or lender used any of the above agencies
they will be able to confirm their contact addresses.
All Agencies, Brokers and Lenders
You are able to see what information any of the above
hold about you. You can ask them for a copy at anytime.
They must also tell you where the information was
obtained. You will need to write and they may charge
a small fee (£10 maximum). The firm will have
to reply within 40 days from receipt of their fee.
If you wish to see the information contained on a
credit reference agency file you can do so by writing
to the relevant agency. The agency must respond within
7 working days. There is a small fee of £2 required.
If your credit reference file contains information
about other people with whom you have no financial
connection or if it contains information which is
incorrect you can ask for the entry to be corrected,
removed, or have a note put on the file explaining
why you think the information is wrong. The agency
will not remove correct information.
The Data Protection Commissioner provides a useful
leaflet which explains how to request changes to your
credit reference file. The easy to read leaflet includes
examples of letters and details of various actions
you may take to amend a file.
You can obtain copy of the free leaflet by writing
to:
No Credit Leaflet, PO Box 99, Nelson, BB9 8GS.
Information is also available at www.dataprotection.gov.uk
