Data protection

Credit
explained
 Contents 3

Contents

•
1 How do lenders decide if they will offer me credit?
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4

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2 How do I get access to the information on my credit reference file?
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9

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3 What is on my credit reference file?
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12

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4 When things go wrong
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25

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5 The Information Commissioner
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34

•
6 Useful addresses 37
4 How do lenders decide if they will offer me credit? How do lenders decide if they will offer me credit? 5

1 How do lenders decide if they •

What are credit reference agencies? 1
2
will offer me credit? • The three main consumer credit reference agencies in the UK are Equifax,
Experian and TransUnion. •3
4

No-one has a right to credit. Before giving you credit,

• These agencies hold certain information about most adults in the UK. This
information makes up your credit reference file or credit report.
• The agencies get their information from lenders, from information in the
•5
6

lenders such as banks, loan companies, catalogue public domain, the electoral roll, and from other sources. See pages 12–
companies and shops want to be confident you will repay 24 for more details about the types of information the agencies hold.
the money they lend. To help them do this, they may look at • When you apply for credit, a lender may look at your credit reference file
the information held by companies called credit to help it decide if you are likely to repay. If you have a financial link such
as a joint account with someone, a lender may look at information about
reference agencies and may also use credit scoring. that person’s credit history.
• Credit reference agencies do not hold blacklists and do not tell a lender if
it should offer you credit — that is for the lender to decide.
6 How do lenders decide if they will offer me credit? How do lenders decide if they will offer me credit? 7

What is credit scoring? Refused credit?

•1
2
• When you apply for credit, some lenders use credit scoring to help them
decide if you are likely to repay. Credit scoring enables lenders to look at
• If a lender uses credit scoring and refuses credit, you can ask the lender to
explain the main reason why. There could be various reasons – for example, •3
4
each credit application in the same way. Lenders should tell you if they are
going to use credit scoring.
• To work out your credit score, lenders may look at your application
there may be information on your credit reference file that the lender thinks is
negative. Or perhaps you did not reach the lender’s pass-mark. Lenders may
also try to make sure they do not offer credit to people who may not be able
to afford it. So even if you repay your existing credit accounts on time, a
•5
6

form and give points to some of the information on it, such as your age, lender may not want to overburden you with more. Lenders do not have to
your job and if you own your own home. Lenders may also give points give you details of how their credit scoring works.
to some of the information on your credit reference file.
• If a lender refuses you credit because it worked out your credit score just by
• Each lender will have its own credit scoring system and will decide how using a computer, you can ask it to review the decision by an employee of the
many points to give each piece of information. For example, if a lender lender.
believes that people in a certain age group are more likely to repay, the
scoring system will reflect this. Each lender will also decide how many • If a lender did not just use a computer to work out your credit score and you
points you need to reach its own ‘pass-mark’. If you score above the pass- have other relevant information you think will alter the decision, you can ask
mark, you are more likely to be offered credit. So you may be refused by the lender to review it.
one lender but accepted by another.
• If you ask the lender to review the decision, it may ask you for supporting
Who used to live at your
c address does not affect your credit score. evidence.
Also, credit scores disregard your sex, religion, race, political beliefs,
• Even if a lender reviews its decision, it may still turn you down.
sexuality or criminal record.
• Different lenders use different systems for working out your score. If you ask
them, they must tell you which credit reference agency they used to get the
information about you. You can then check whether the information they used
is right.
8 How do lenders decide if they will offer me credit? How do I get access to information on my credit reference file? 9

How do I get access to information on

2
• Because each lender has a different system to work out credit scores,
even if you’re refused by one creditor, you might not be refused by others.
• You may be able to improve your credit score by correcting anything that my credit reference file?
is wrong on your credit reference file.

By law, you can contact any of the credit reference

agencies and ask for a copy of the information it holds
about your financial standing, free of charge. You can
make a request verbally or in writing, or usually the
agencies provide an online form. If you make your
request verbally, we recommend you follow it up in
writing to provide a clear trail of correspondence. It will
also provide clear evidence of your actions.

You may find that the agencies offer you other services,
for which there may be a fee.
10 How do I get access to information on my credit reference file? How do I get access to information on my credit reference file? 11

In your request you will need to give the following details:

• Your full name – also give any names you used to be known by,
123 Any Street
••
1
2

•
Anytown
such as a maiden name (your name before marriage). A45 4EV 3
• Your full address, including postcode. 18 January 2019 4

• Any addresses you have lived at over the past six years.
• Your date of birth.
Dear Credit Reference Agency

Under Article 15 of the General Data Protection

Regulation please send me a copy of the
•
5
6

information you hold relating to my financial

If you make your request in writing, you should keep a copy of your letter standing.
and you may want to send it by recorded delivery or registered post in I have lived at the above address for three
case you need to prove your request has been sent and received. years. Before that I lived at 789 High Street,
Anytown, A43 9DF.
When the credit reference agency receives your request, they have one I expect you to respond within a month of
calendar month to reply to you. receiving this letter.

• Sometimes credit reference agencies need more information from you Yours faithfully
before they can send you your file. For example, they may need proof of
your name and address from a utility bill or bank statement. This is
important to make sure that no-one else gets your file by mistake or to Adam Neil Other
check that no-one else has fraudulently applied for your credit reference
Date of birth 1 January 1969
file. The agencies do not have to send you your file until they get this
information.

When you apply for your credit file, if you are a sole trader or partnership you
Please see page 37 for the contact details of the three main credit
may be able to get information about the credit status of your business too.
reference agencies.
12 What is on my credit reference file? What is on my credit reference file? 13

3 What is on my credit •
Public record information 1
2
reference file? The electoral roll (or voters roll)
• By law, credit reference agencies are allowed to use the full electoral roll for •3
4
certain limited purposes. When you apply for credit, a lender may look at
the electoral roll to check that you live, or have lived, at the address(es)
you have given on an application form.
• Proof of where you live and how long you have lived there is important to a
•5
6

lender. If you are entitled to vote but are not registered on the electoral
roll, you should contact your local authority. You may find you have
difficulty getting credit if you do not register.

Bankruptcy
• This may stay on your credit reference file for six years from the date of
your bankruptcy, even if you have been discharged (freed) from
bankruptcy. A bankruptcy restrictions order may remain on your credit
reference file for longer.
• If your bankruptcy has been discharged, you may need to send the credit
reference agencies a certificate of discharge, unless you have paid for
the Official Receiver to publicly advertise your discharge. You can get the
certificate of discharge from the court where the bankruptcy was filed.
There will be a fee for this.
14 What is on my credit reference file? What is on my credit reference file? 15

• Any account(s) included in your bankruptcy may show on your credit

reference file as being in default. The date of the default(s) should not be
County court judgment (CCJ) and a high court judgment (HCJ),
administration order (AO) or decree •1
2
later than the date of the bankruptcy order. See page 16 for more
information on defaults.
• All judgment, decree and administration order data is supplied to the
credit reference agencies by Registry Trust Limited, which keeps registers •3
4
• If your bankruptcy has been annulled (cancelled), you will need to send
proof to the credit reference agencies. When you apply for credit, the
provider may also ask to see this.
• If you need help with your bankruptcy, you should contact the Insolvency
of this information.
• Data is held by Registry Trust Limited and on a credit reference file for six
years from the date of the CCJ, HCJ, AO or decree unless it is set aside or
recalled by the courts.
•5
6

Service or get independent advice.

• It can also be removed if your debt is repaid within one calendar month of
the original date. See pages 26–33 for more information.
Individual voluntary arrangement (IVA)
• If you have repaid a CCJ, HCJ, AO or decree, you can get your credit
• This may stay on your credit reference file for six years from the date of
reference file updated. See pages 26–33 for how to do this.
the arrangement (even if your IVA has been completed). If your IVA lasts
If you apply for credit, the provider may also ask to see proof of
longer than six years, it will remain on your credit reference file for the
settlement.
length of the arrangement.
• If the judgment, order or decree relates to an account that has gone into
• If your IVA has been completed, you may need to send proof to the credit
default, the date of the default should not be later than the date of the
reference agencies. When making an application for credit, the provider
judgment, order or decree.
may also ask to see this.
• If you think your judgment details on the register are incorrect or
• If you need help with your IVA, you should contact your insolvency
incomplete, you may ask Registry Trust Limited to check your entry with
practitioner or get independent advice.
the courts.
16 What is on my credit reference file? What is on my credit reference file? 17

Information from lenders

• Lenders may pass information about your credit account(s) to the credit
• An arrangement to pay. Sometimes, if you cannot make the full
payment for your account, the lender may allow you to pay a different •1
2
reference agencies to show whether you have been making the correct
payments and on time. If you have a history of paying on time, this is
amount for a short time. This will show on your credit reference file as an
arrangement to pay. The credit reference agencies may show these
arrangements to pay in different ways. What the agency sent you with •3
4
likely to help you get further credit.
• If a lender is going to pass information to the credit reference agencies, it
should tell you. You would normally see this stated on the application
form under the data protection notice, in the privacy information, and/or
your credit reference file should explain how it records such
arrangements.
•5
6

under the provider’s terms of business.

Other information
• Some lenders do not record information with all the main credit reference Search information
agencies, so you may find that the information on your credit reference
• When an organisation looks at your credit reference file, a record of the
file differs from the information on your file at another agency.
‘search’ is made – sometimes called a ‘footprint’. This shows the name of
the organisation, the date it searched your file and the type of search.
Your credit file may show the following:
• Organisations may also search your credit reference file while you are
• A live account. This may show on your credit reference file until your
‘shopping around’ for the best credit or insurance deals – they should
account is settled or closed. It may then show on your file for six years.
always tell you they will do this. To avoid a lot of credit application
• A settled or closed account. This may show on your credit reference file searches while you are shopping around, you should make clear that all
for six years from the date it was closed. you want is a quotation for the likely cost of the product. Organisations
can carry out quotation or ‘quick quote’ searches that do not show you
• A defaulted account. This may show on your credit reference file for six
have applied for credit.
years from the date of the default. A default normally occurs when you
have not met the terms of a credit agreement and your account is three to • Sometimes organisations also need to look at part of your file for other
six months in arrears. When you repay the debt, the entry on your credit reasons, such as to check your identity or to prevent money laundering.
reference file should be marked as settled or satisfied. No-one else except you would see they had made these enquiries.
18 What is on my credit reference file? What is on my credit reference file? 19

• Experian and Equifax keep most search information for one year.
They record debt-collection searches for up to two years.
Sample letter to send to the credit reference agency to request disassociation:
•1
2
• TransUnion keeps search information for two years.
123 Any Street
Anytown •3
4
Alias or association information
• You may see a list of any other names you have used in the past,
for example a maiden name. This is known as ‘alias’ information.
Financial information in your other names will show on your credit
Dear Credit Reference Agency
A45 4EV

18 January 2019 •5
6

reference file. Your reference: 123456-7890

Thank you for sending me information regarding

• If you have a joint account or have made a joint application for credit, my financial standing. The information about Alice
the name of the other person(s) will show on your credit file as a Natalie Other relates to my ex-wife. We are now
financial association. This means that when a lender looks at your file divorced and no longer have any financial
they will also be able to see financial information in the name of the connection.
other person or people. However, your file will only show financial
information in your name. Your file will show the name of the Please disassociate us, so that financial information
about her is no longer linked to me and
organisation that gave this information and when. You and the other information about me is no longer linked to her.
person may also have given this information directly to a credit
reference agency. The other person’s name will stay on your credit Yours faithfully
reference file until you write to the credit reference agencies telling them
you are no longer financially connected. This is called disassociation.
Adam Neil Other

Date of birth 1 January 1969

20 What is on my credit reference file? What is on my credit reference file? 21

Linked addresses
• A linked address may be created when an account moves between
GAIN (Gone Away Information Network)
• Lenders that take part in GAIN pass information to the credit reference •1
2
addresses, such as when you move house, or when a lender checks your
records at your previous address, or if you tell a credit reference agency
agencies when customers have not kept their account repayments up
to date and then move without telling the lender their new address. •3
4
about a previous or forwarding address.
• A linked address may stay on your credit file as long as this information is
relevant for credit referencing purposes.
Only GAIN participants may see this information.
• This information may stay on your credit reference file for six years.
•5
6

CIFAS (the UK’s fraud prevention service)

• The CIFAS system is used by the credit industry and other organisations to
prevent fraud.
• If a lender believes it may have detected a fraud or attempted fraud,
a CIFAS marker may be put on your credit reference file. It aims to warn
lenders and to protect innocent consumers.
• The information filed may not directly relate to you but, for example, may
show that someone has tried to use your name without your permission.
• No-one should be refused credit just because of a CIFAS marker, and these
markers are not included in your credit score. A CIFAS marker simply
means the lender should take extra care to make sure that the person
applying for credit is who they claim to be and that the information they
have given on their application form is correct. Only CIFAS members see
this information.
22 What is on my credit reference file? What is on my credit reference file? 23

How long is information kept on my credit reference Account information:

•1
2
file? Public record information: Type of information Kept for?
•3
4
Type of information

Electoral roll
Kept for?

Indefinitely
Live account Information is collected until the account is
closed, then kept for six years
•5
6

Closed account Six years from the date the account is closed
Bankruptcy Normally six years from the date the
bankruptcy begins, even if it is discharged Default Six years from the date of the default
(unless the bankruptcy lasts longer than this)
Arrangement to pay Depends on the terms of the arrangement
Individual voluntary Six years from the date the IVA begins, agreed with the lender
arrangement (IVA) even if it is completed (unless the IVA lasts
longer than this)

Administration order Six years from the date of the order, even if
it is paid in full

County court judgment/ Six years from the date of the judgment,
high court judgment/ even if it is paid in full (but it may be
decree removed if it is paid in full within one month
of the judgment date)
24 What is on my credit reference file? When things go wrong 25

4
Other information:

Type of information Kept for?

When things go wrong
Searches Experian and Equifax one year,
(or two years for debt-collection searches).
TransUnion two years

Alias information Depends on your circumstances

Association information Until the financial link ends, you ask for a
disassociation and the credit reference agency
changes your records

Linked addresses As long as is relevant for credit referencing

CIFAS Ongoing if there is evidence of fraud

GAIN Six years

26 When things go wrong When things go wrong 27

Should I use a credit repair company? If after doing this you still do not receive a response, you may wish to
contact the Information Commissioner’s Office. See pages 34–36 for who •1
2
• You should think carefully before deciding whether to use a credit repair
company. These companies may promise to remove information such as
the Information Commissioner is and how to make a complaint.
••
3
4
county court judgments from your credit reference file to improve your
credit rating. They will charge a fee for doing this.
• If information such as a county court judgment has been accurately
recorded on your credit reference file, it normally cannot be removed until
I have paid my county court judgment (CCJ) or high court judgment
(HCJ), administration order (AO) or decree but my credit reference
file has not been updated. What can I do?
•
5
6

after a set period. Chapter 3 of this booklet (pages 12–24) explains what
information may show on your credit reference file and for how long.
• This section (pages 25–33) tells you what you can do when you think England and Wales
information on your credit reference file is wrong. There is also a list County court judgment (CCJ) and high court judgment (HCJ)
of useful addresses for organisations that may be able to help you free
of charge. • Once you have fully repaid your judgment, the court will notify Registry
Trust Limited so that the register can be updated.
• If you wish, you may also apply to the relevant court for a certificate of
I requested information from my credit reference file over a
month ago but have not received a reply. What can I do? satisfaction.
To do this you should send the court:
• You should contact the credit reference agency again explaining when – the case number; and
you asked for your information. We recommend contacting them in – a fee of £15 (cheque/postal order payable to HMCTS).
writing to provide a clear trail of correspondence. It will also provide clear
evidence of your actions. • If the CCJ or HCJ was fully repaid within one calendar month from the
date of the judgment, it will be removed from the register and from credit
• If you sent your request by recorded delivery, you should give the reference agency files.
reference number, the type of service you used and the date you sent
your letter.
28 When things go wrong When things go wrong 29

• If the CCJ or HCJ was fully repaid after one calendar month, the register
and your credit file will be amended to show the judgment as satisfied.
must also contain:
•1
2
This will stay on your credit reference file for six years from the
judgment date.
–
–
–
the name of the court;
the case number;
the date and amount of the decree; ••
3
4
Administration order (AO)
• Once you have repaid your AO, the court will notify Registry Trust Limited
so that the register can be updated regarding this order. If you wish, you
–
–
the date the debt was repaid in full; and
an administration fee of £6 (made payable to Registry Trust Limited).
• Registry Trust Limited will amend the register and tell the credit reference
•
5
6

agencies so they can update their records.

may apply to the court for a certificate of satisfaction. To do this, you
should send the court details of the AO number and a fee of £15 • If the proof shows that the decree was paid within one calendar month of
(cheque/postal order payable to HMCTS). Payment of the AO will not satisfy the original decree date, it will be removed from the register and the credit
any CCJ contained in it unless that judgment is also fully repaid. reference agency files.
• After issuing the certificate, the court will notify Registry Trust Limited who • If the proof shows it was paid after one calendar month, it will be marked
will amend the register and inform the credit reference agencies so they as satisfied and stay on the register and your credit reference file for six
can update their records. The AO will be marked as satisfied and will stay years from the decree date.
on your credit reference file for six years from the order date.
Northern Ireland
Scotland
• If a debt is undefended, judgments can be issued by the magistrates’
• In Scotland, judgments are called decrees and are issued by the small court or the county courts in Northern Ireland, depending on the amounts
claims and summary causes sheriff courts. of money owed.
• If you fully repay a decree, you should write to Registry Trust Limited • If you fully repay a judgment, you should write to Registry Trust Limited
(address on page 37) with the following: (address on page 37) with the following:
– Your full name and address at the time of the decree. – Your full name and address at the time of the judgment.
– Proof of payment (usually a receipt or letter from the plaintiff), which
– Proof of payment (usually a receipt or letter from the claimant), which must also contain:
30 When things go wrong When things go wrong 31

–
–
the name of the court;
the case number;
If you think the electoral register information on your credit file is incorrect,
you should contact the credit reference agency. If you simply need to register •1
2
–
–
the date and amount of the judgment;
the date the debt was repaid in full; and
to vote, you should contact your local authority.
••
3
4
– an administration fee of £6 (made payable to Registry Trust Limited).
• If the judgment has been registered with the Enforcement of Judgment
Office, you can contact that office (address on page 37) asking for a
‘paid in full search’, which costs £6.
If your query is about other credit information, you can contact the lender or
the credit reference agency. If you contact the credit reference agency, it
will normally need to contact the lender and ask it to investigate your
complaint. So you may find it quicker to contact the lender directly yourself.
This will also save you having to contact each of the agencies that hold the
•
5
6

• Registry Trust Limited will amend the register and tell the credit reference information you think is wrong. We recommend contacting them in writing to
agencies so they can update their records. provide a clear trail of correspondence. It will also provide clear evidence of
your actions.
• If the proof shows that the judgment was paid within one calendar month
of the original judgment date, it will be removed from the register and the Contacting the lender
credit reference agency files. • Give your full name and address. It may also help to give any relevant
account number or reference numbers to help them find your information.
• If the proof shows that the judgment was paid after one calendar month,
it will be marked as satisfied and will stay on the register and your credit • Explain what information you think is wrong and why.
file for six years from the judgment date.
• Provide any proof you have to show the lender why the information is
wrong.
I have my information but some of it is wrong. What can I do?
• Keep a copy of any letters you send.
If your query is about the accuracy of a CCJ, HCJ or AO in the English and
Welsh courts, and is not about full payment of the debt, you may ask • The lender has one calendar month to respond to your request to correct
Registry Trust Limited (address and website on page 37) to check your entry your information. In certain circumstances it may need extra time to
with the courts. consider your request and can take up to an extra two months. If it is
going to do this, it should let you know within one month that it needs
If your query is about the accuracy of a decree in Scotland or a Northern more time and why.
Ireland judgment, you should contact the court.
• If you do not get a response, you should send the lender a follow-up letter.
32 When things go wrong When things go wrong 33

Contacting the credit reference agency The credit reference agency has not replied to my letter
within 28 days, or it has replied to my letter but taken no •1
2
• Give your full name and address. It may also help to give your credit
reference file number.
action. What can I do?
••
3
4
• Clearly explain what information you think is wrong and why.
• Provide any proof you have to show why the information is wrong.
• Keep a copy of any letters you send.
You can ask the credit reference agency to add a notice of correction to
your credit reference file. You can also write to the Information Commissioner.

What is a notice of correction?

•
5
6

• By law the agency must tell you within 28 days of your letter if it has: • This is a statement of up to 200 words, which you can write. It will be
– removed the entry from your file; seen by anyone who looks at the entry on your credit reference file and
should be considered if you apply for credit.
– amended the entry; or
– taken no action. • The notice should clearly and accurately explain why you think an entry
on your credit reference file is wrong.
• If the entry is amended, the agency will send you a copy of the amended
entry. The agency will also send the details to any lender that has • If the agency thinks your notice of correction is incorrect, defamatory
searched your credit reference file in the last six months. (affecting someone’s reputation), frivolous or scandalous, or is for any
other reason unsuitable for publication, it must pass the notice to the
If, after writing to the lender or the credit reference agency, the information Information Commissioner. The Commissioner will then make an order
is still wrong or you do not get a response, you may wish to contact the to say what notice, if any, should be added to your credit reference file.
Information Commissioner. See pages 34–36 for who the Information Commissioner is and how to
make a complaint.
See pages 34–36 for who the Information Commissioner is and how to make
a complaint.
34 The Information Commissioner The Information Commissioner 35

5 •
3. You contacted the credit reference agencies because the information on 1

The Information Commissioner your credit reference file is wrong. You have given them 28 days to reply
2
but they have not replied, or they have replied but the information is still
wrong.
•3
4

Who is the Information Commissioner?

4. You asked for a notice of correction to be added to your credit reference
file but the credit reference agency will not add it. The credit reference
agency should also write to the Information Commissioner’s Office. •5
6

What should I send the Information Commissioner?

• The Information Commissioner enforces the General Data Protection
Regulation (GDPR), the Data Protection Act 2018 and the Freedom of
• Your full name and address.
Information Act 2000.
• If you:
• The GDPR gives you the right to ask for a copy of information held about
your financial standing and to correct any information that is wrong. a) asked for a copy of the information about your financial
standing but have still not received it, you should send:
When should I contact the Information Commissioner?
– any evidence of your request; and
– a copy of your follow-up letter.
There are four main reasons why you might need to contact the
Information Commissioner: b) contacted the lender or credit reference agency because the
information on your credit reference file is wrong, you should send:
1. You asked for a copy of your financial information but still have not got it,
despite following the advice on pages 9–11. – an explanation of what you think is wrong and why;
– copies of letters you have sent to or received from the lender or
2. You contacted the lender(s) because the information on your credit
agency; and
reference file is wrong. You have given them at least one calendar
– any proof you have to show why the information is wrong;
month to reply and have sent a follow-up letter but they have not replied,
or they have replied but the information is still wrong.
36 The Information Commissioner Useful addresses 37

6
c) asked for a notice of correction to be added to your file and
the credit reference agency will not add it, you should send:
– a copy of the notice of correction; and Useful addresses
– copies of the letters you have sent to or received from the credit
reference agency.

What happens next?

Credit reference agencies

• The Information Commissioner will consider the information you provide Equifax Ltd Experian Ltd Enforcement of
and may decide to contact the lender or credit reference agency for their Judgments Office
comments. Customer Service Centre Customer Support Centre Laganside House
PO Box 10036 PO Box 9000 23–27 Oxford Street
• The Commissioner will then decide what action, if any, to take.
Leicester LE3 4FS Nottingham NG80 7WF Belfast BT1 3LA
• You can get more information about the Commissioner and her role from
our website: ico.org.uk 0800 014 2955 0800 013 8888 0300 200 7812
equifax.co.uk experian.co.uk courtsni.gov.uk

TransUnion Registry Trust Limited

Consumer Services Team 153–157 Cleveland Street

PO Box 491 London
Leeds LS3 1WZ W1T 6QW

0330 024 7574 020 7380 0133

transunion.co.uk info@trustonline.org.uk
38 Notes
Contact us

If you would like to contact us please call 0303 123 1113 (local
rate – calls to this number cost the same as calls to 01 or 02
numbers).

https://ico.org.uk/global/contact-us/

September 2019

Information Commissioner’s Office,

Wycliffe House, Water Lane,
Wilmslow, Cheshire SK9 5AF

0000

Information Commissioner's Office