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Credit Check agencies are to be incstigated by MP’s as to whether consumers are being deprived of the best credit card an loan deals.
Bosses of leading credit check agencies Equifax, Experian and Callcredit will all be quizzed by The Treasury Select Committee as to whether searches on personal credit ratings can influence the decisions of lenders.
Credit checks are regularly used by lenders as to a determine if an application will be accepted for credit or not. If a score falls below a certain level, the deal may be refused and re-offered with a higher rate of interest.
The data held by agencies shows records of any credit cards, loans, mortgages and overdrafts the applicant has over the last six years and details any missed or late payments. Consumer groups, however, argue that these records can be unfair and if the data is incorrect, it can be ridiculously tough to get it amended, with credit agencies taking no responsibility for the accuracy of the data.
These consumer groups also voice concern about “credit footprints,” notes by banks that are left on your record whenever you apply for a loan or credit card, which canr reduce your chances of receiving credit because, even though you could be shopping around for the best deal, lenders can view this as someone desperate for money and applying to all-comers.
