In simple terms the Data Protection Act requires that companies who have access and retain customer information must explain in full how exactly they plan to use the information and what purposes it will be put.  This does not only include information that is stored on a computer, but also it is relevant to any ordered filing system. 

CREDIT BROKERS

If you have applied to a credit broker they will use your information to;

1. process your application that you have made;
2. make, or cause a search by passing your information onto to third party agencies for credit checking.  Your record details of our search will be shown in any other searches made by other organisations.  Please note that this may adversely affect your credit rating, thus making it harder for you to obtain credit in the future.

Your information may also be used to: -

1. pass your information onto lenders and organisations that can then carry out fraud detection and prevention processes.  Please be aware that when we process your information we may use an automated decision making system, there for all your information needs to be accurate.  If the information that you provide is incorrect fraud may be suspected, and will be recorded;
2. use your information in the future to call or write to you about future products that may be of interest to you;
3. conduct general surveys and business analysis, as part of market research, to help improve our general services and products to you as a customer;
4. disclose information about you in response to legislative/court orders;
5. pass your information onto lenders that may be willing to lend you money;
6. pass your information onto legal enforcement agencies to assist in the investigation of crime;
7. Pass your information onto another broker, if we are unable to provide finance for you.

We may keep hold your information for several years to comply with legislative requirements and also if there are any queries that need to be resolved.  If you do not wish for your information to be used for future product offers then please contact us on (01603) 750300

All lenders or brokers that we work with may process your application in the same way as we do.  Every company or person who handles your information is responsible for keeping the data up to date and accurate.

If the application you are applying for is in joint names or you have informed us of a financial association with another person then you must be sure that you are entitled to: -

1. divulge information about your joint applicant or anyone associated to you;
2. allow searches to be made by either us or credit reference agencies on the joint applicant or anyone associated to you.

When you state that you have a financial partner the credit reference agencies will make an ‘association’.  This means that every time that you are searched you and your partners financial details will be linked, and that both of your information will be taken into account when processing an application.  This will continue until one of you files for a disassociation at the credit reference agency.

LENDING COMPANIES

The lenders to whom the application has been passed onto to process will have a much wider use of the information than the broker.  If you receive any lender documents there should always be a statement included which specifies what they will do with your information, or it will state where to look to find out what use they will make of it.  This statement is most likely to be placed near the signature box or clearly on the front page of the document.  If it is not near the signature box then there will be an “information padlock” sign  this is to draw your attention to where the information is found.

Almost all of the lenders will check your application against data held by credit reference agencies.   Every time a search is made it will be recorded by the agency, once an account has been opened with the lender the agency will receive regular information on how you run your account.  This may be used by other lenders to help make decisions on future applications for credit.

A credit scoring system is a system by which lenders assess your situation by using a point score.  Points are given for various factors such as your age, your income or even information that they received from credit reference agencies, such as previous fully repaid and existing credit.  Lenders will have different methods of scoring, this depends on their views of the importance of the different factors and to what levels of risk that they will accept.  You should be told if a lender is going to be using a credit scoring system.

It is important that all the information that you give on the application is correct.  The lender will use fraud prevention agencies along side with the credit reference agencies to check that the details on the application are true, and that the application has been made by you.  If the lender suspects that the information is in fact false, misleading or inaccurate they may report it to a fraud prevention agency. 

In order to protect honest applicants, as well as credit reference agencies, agencies specially designed to check the application details to identify the possibility of fraud may be used.  This may delay the process slightly.

WHAT IF MY LOAN IS NOT ACCEPTED?

It is at the lenders discretion whether they wish to lend you credit, it is not guaranteed that when you apply for a loan that you will be accepted on finance.  If you get declined by a lender this can be for a number of reasons.  It could be that the lender thinks that you will not be able to afford the loan.  If you are applying for a secured loan, it may be that the value of your property does not equal to the amount that you wish to borrow.

The lender does not always have to tell you exactly why you have been declined credit but if you ask for the name and number of the credit reference agency, that the lender has used, they will provide this to you free of charge.

If you have been declined by a computerised credit scoring system then you are entitled to find out from the lender how exactly their credit scoring works.  The lender may charge a small fee for this service.  You also have the right to have a non automated review of the decision.

USE OF INFORMATION ONCE A LOAN HAS BEEN MADE

All lending companies will keep information about their customers in their own records.  This includes initial information that is given by you, and also information that is gathered during the course of the loan, such as how the account has been run and any other dealings between you and the lender.

Lenders will record the ways in which you run your account, including if payments have been made on time and other information, this is done by using one or more credit reference agencies.  By recording this information it will help the lender, and others, to make future decisions when deciding whether you or members of your household will get credit or credit related services.

Information may be provided to other agencies.  These other agencies will help the lenders and other subscribers to trace debtors, recover debt, prevent fraud and to check your identity to prevent money laundering.  If any difference is found between the information that is given by you or your broker and later information that is discovered by your lender it is likely to be noted.

The lender may use your information for statistical analysis on credit, this will be done either by them or a third party who is contracted to do the work for them.  If they do use a third party then they are compelled to ensure that your information is kept properly secure.  Many lenders will have to pass information about you and your account onto their bankers, other providers, insurers and re-insurers of funding for their lending or any other products they have offered to you.

If a lender intends to use your information for any other purpose not stated above then you will be informed of this in their documents.

Brokers and lenders are under a legal duty to keep your information up to date and accurate.

CREDIT REFERENCE AGENCIES

The two main credit reference agencies are:

Equifax Plc
Credit File Advice Service
PO Box 3001
Glasgow, G81 2DT

Experian Limited
Customer Help Service
PO Box 8000
Nottingham, NG1 5GX

The agencies do not keep “black lists” nor they do they give opinions on whether or not you should be granted credit.  They do have a duty to keep information up to date and accurate.

Credit reference agencies hold a wide range of information.  The information includes as the voters’ or electoral role and most records of county court judgements and bankruptcies.  Information on previous and existing credit is also keep and a record of searches made against your file.  Lenders will also share information with the agencies such as your payment history, whether your payments have been paid into your account on time.  Loan information will usually be kept on file for 6 years, details of the voters roll may be held for longer.  Credit search information is kept for 2 years. 

OTHER AGENCIES

CIFAS
CIFAS provides reports relating to fraud and fraud avoidance for most lenders – the reports are there to provide information such as the indication of fraud, or attempted fraud.  The information might not directly relate to you, it might relate to somebody who is trying to impersonate you.  CIFAS is there to warn lenders and provide protection for innocent customers.

CML Repossession Register 
The Council of Mortgage Lenders’ Repossession Register is available to members through the main credit reference agencies.  The register shows if a property has been repossessed or given up voluntarily.

GAIN
“Gone Away Information Network” provides information on customers, who is in arrears with payments, which cannot be traced.  A marker will be placed on the file as “gone away”, alternatively the marker may indicate a new address which the “gone away” has been traced to.  

HUNTER
Information on applications and loans given are kept on this register.  It is used to trace fraudsters who use different combinations of information to obtain credit.  It checks and counter checks information given on the application forms.

If your lender or broker uses any of the above agencies they will be able to confirm their contact addresses.

ALL AGENCIES, BROKERS AND LENDERS

You are entitled to see any information any of the above hold about you.  If you wish to see this information you can write to them and request this at any time.  They may charge a small fee (£10 maximum).  The firm will have to reply to in 40 days from receipt of their fee.  

If you wish to see any of the information held about you by the credit reference agency then you can write to them at any point and request this.  There will be a small charge of £2.  The agency must reply to you in 7 working days.  If your credit reference file contains any information about other people with whom you have no financial connection with or if it contains information that is incorrect then you can ask for your entry to be corrected, removed, or have a note put on file to explain why you think the information is wrong.  The agency will not remove correct information from the file.

The Data Protection Commissioner provides a useful leaflet which explains how to request changes to your credit reference file.  You can obtain this leaflet by writing to:

No Credit Leaflet
PO Box 99
Nelson, BB9 8GS

Information is also available at www.dataprotection.gov.uk.