Legal Statement – Data Protection
In simple term 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 purpose 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. The information below describes how your data will be processed. If your information is to be processed differently the trader will tell you.
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 a 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 drawing your attention to where the information is.
A credit scoring system is a system by which points are given for various factors like your age, your job or even information obtained from a credit reference agency, such as how you have repaid previous or existing credit. Lender use different methods of scoring depending upon their interpretation of the importance of difference factors and the level of risk they are willing to accept.
The lender may check your details with the credit reference agency or with other agencies (see further down this guide) 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 is given later on in this guide.
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. The 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 system 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 this 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. Lender 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 to, 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 under the “Other Agencies” section of this guide. 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 purpose 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 main credit reference agencies are: Callcredit Plc Equifax Plc Experian Limited
Credit reference agencies keep a wider range or 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 these agencies providing a history of how punctually payments are being made or have been made. Loan information is usually help on file for 6 years. Details of the voters roll may be held for much longer. Information about credit searches is kept for 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 indicating 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 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 you broker or lender uses 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 on 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 the 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 Information 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 a copy of the free leaflet by writing to: No Credit Leaflet Information is also available at www.dataprotection.gov.uk
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Like many websites, when you visit this website we may issue a ‘cookie’ which is a unique code that allows us to identify your computer. The cookie is used to note the different areas of our website were recently accessed through your computer in order that we may monitor which pages of our website are of most interest to you. We may use the information collected in this manner to tell you about the products or services which may be of interest to you when you make further visits to this website. Changes to this Data Protection Policy We may amend or edit this Data Protection Policy from time to time. If we do make any significant changes to the way in which we use your personal information/data we will inform you by posting a notice in the news section of our website. If you have any queries or questions about of Data Protection Policy, the Terms of use or any other aspect of this website, please contact us at: 11, Parade House |
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