DO YOU WANNABE A GOOD CREDIT RISK?

Sunday Mirror, Jun 22, 1997 by Diane Boliver

They may have acquired riches beyond their wildest dreams - but even the Spice Girls have fallen foul of credit-scoring.

Mel C was recently turned down for a mobile phone by Vodaphone and Mel B was refused a credit card by the Halifax.

The girls had moved so often that they failed to show up on the electoral roll - an important indicator of your credit-worthiness.

Their applications for credit have since been approved. But each year hundreds of thousands of Britons are refused credit...often because information held on them is incorrect.

When you apply for a mortgage, loan, HP or credit card, the lender wants to find out first whether you are likely to repay the debt.

Its decision is based on a process of credit-scoring. This takes into account your age, job and how long you have lived at your present address.

The lender is also likely to use a credit reference agency which lists details of previous loans, any county court judgements against you over the past six years, and whether you have been bankrupt or had your home repossessed.

But the Office of Fair Trading reckons that incorrect details are held on the files of up to 200,000 people.

And, bizarrely, it is up to YOU to make sure it's right. There are many ways that people can be wrongly blacklisted.

If you have had a county court judgement against you, but have since cleared the debt, a credit reference agency search will show the judgement but is unlikely to show the debt has been cleared.

It is up to you to prove repayment by sending a "certificate of satisfaction" from the county court.

Some people have been blacklisted because they have been linked to people with a similar name. Others find their address has been blacklisted because of a previous occupant.

You can write to the agency to disassociate yourself. But you will need to provide proof.

Consumers refused credit have the right to be given an indication of the reason why. The lender must tell you which credit reference agency it used.

You have a right to see their information. If it seems OK, go back to the lender and find out whether its refusal was due to its credit- scoring method or its previous experience of you as a customer.

You have the right to appeal. It is often worth questioning a refusal.

If a credit-reference agency has inaccurate information on you, write a notice of correction, giving reasons why it is incorrect. Use no more than 200 words.

If you hear nothing within 28 days, complain to the Director General of Fair Trading, Field House, 15-25 Bream's Buildings, London EC4A 1PR.

If you have been turned down for a loan because of incorrect information held on you, it is the agency's responsibility to send your amended file to the lender.

To check YOUR credit-rating, write to the agencies - CCN Credit Systems (Consumer Help Service, PO Box 40, Nottingham, NG7 2SS) and Equifax Europe (Spectrum House, 1a North Avenue, Clydebank, Glasgow G81 2DR) - sending a pounds 1 fee and your past six years' addresses.

The Office of Fair Trading has produced a booklet, called No Credit? For a free copy, phone 0181 398 3405.