Credit referencing
If you apply for a credit based product (e.g. a mortgage or a personal loan) we will perform a search with a credit reference agency. We may give details of your account and how you conduct it to credit reference agencies. Similar information may also be given about your other lending/credit relationships with members of the HBOS group. If you borrow and do not repay in full and on time, we may tell credit reference agencies who will record the outstanding debt.
The information below provides further details about how credit reference agencies, Birmingham Midshires and other lenders use your information.
Q: What is a credit reference agency?
A: Credit reference agencies (CRAs) collect and maintain information on consumers' and businesses' credit behaviour, on behalf of lenders in the UK.
Q: What is a Fraud Prevention Agency?
A: Fraud Prevention Agencies (FPAs) collect, maintain and share information on known and suspected fraudulent activity. Some CRAs also act as FPAs.
Q: Why do you use them when I have applied to your organisation?
A: Although you have applied to Birmingham Midshires and we will check our own records, we will also contact CRAs to get information on your credit behaviour with other organisations. This will help us make the best possible assessment of your overall situation before we make a decision.
Q: Where do they get the information?
A: Publicly available information:
- The Electoral Register at Local Authorities
- County Court Judgments from Registry Trust
- Bankruptcy information from the Insolvency Service.
- Fraud information from Fraud Prevention Agencies
- Credit information comes from information on applications to banks, building societies, credit card companies etc. and also from the conduct of those accounts
Q: How will I know if my information is to be sent to a CRA or FPA?
A: You will be told when you apply for an account if your data will be sent. The next section tells you how, when and why we will search at CRAs and what we will do with the information we obtain from them. We will also tell you if we plan to send payment history information on you to CRAs. You can ask at any time for the name of the CRAs and FPAs that we use.
Q: Why is my data used in this way?
A: We and other organisations want to make the best possible decisions we can, in order to make sure that you will be able to repay us. Some organisations may also use the information to check your identity. In this way we can ensure that we all make responsible decisions. At the same time we also want to make decisions quickly and easily and, by using up to date information, provided electronically, we are able to make the most reliable and fair decisions possible.
Q: Who controls what credit reference agencies are allowed to do with my data?
A: All organisations that collect and process personal data are regulated by the Data Protection Act 1998, overseen by the Information Commissioner's Office. All credit reference agencies are in regular dialogue with the Commissioner. Use of the Electoral Register is controlled under the Representation of the People Act 2000.
Q: Can just anyone look at my data held at credit reference agencies?
A: No, access to your information is very strictly controlled and only those that are entitled to do so, may see it. Usually that will only be with your agreement or (very occasionally) if there is a legal requirement.
