Unauthorised credit search and credit agreement created
Discussion
Made a bit of an unexpected discovery just now.
I have a subscription with CreditExpert (from Experian) that allows me to view my credit report whenever I want. I've just noticed that a mail order company that I made an order with back in October (and paid for by credit card) performed a credit search on me and have set up a line of credit for me without asking.
My understanding is that in order for them to have opened this and for it to appear on my file, they should have required me to sign an agreement under the Consumer Credit Act and there is no way I would have done this over a mail order.
Also, multiple searches on your credit file harm your credit rating temporarily, and too much available credit likewise (although with a declared limit of £200 it's not going to harm my rating particularly).
I'm just both annoyed and concerned that they can go and create a credit account for me which appears on my credit file without asking me.
Is this something I should be raising a stink over or should I just phone up the company concerned, bend their ear a bit and tell them I want this account closed?
I have a subscription with CreditExpert (from Experian) that allows me to view my credit report whenever I want. I've just noticed that a mail order company that I made an order with back in October (and paid for by credit card) performed a credit search on me and have set up a line of credit for me without asking.
My understanding is that in order for them to have opened this and for it to appear on my file, they should have required me to sign an agreement under the Consumer Credit Act and there is no way I would have done this over a mail order.
Also, multiple searches on your credit file harm your credit rating temporarily, and too much available credit likewise (although with a declared limit of £200 it's not going to harm my rating particularly).
I'm just both annoyed and concerned that they can go and create a credit account for me which appears on my credit file without asking me.
Is this something I should be raising a stink over or should I just phone up the company concerned, bend their ear a bit and tell them I want this account closed?
I would call the comany and ask them to remove the search and the credit limit (or at the very least the search) It's a point of principle and too many companies appear to be doing similar things without authority.
If they refuse, then you could make a complaint which ultimately may result in their consumer credit licence being revoked. Worth mentioning that to them!
If they refuse, then you could make a complaint which ultimately may result in their consumer credit licence being revoked. Worth mentioning that to them!
smartie said:
they can search without a signed agreement, hence online applications etc. You might want to check the terms and agreements you may have agreed when you bought?
Indeed. There's some confusion as to whether my wife or I set up the account with them, so I'll blame her. 
Either way, I'll close the account down (in the sense of telling them that I do not want a credit account with them) then at least the account will show as "settled" on my credit history rather than open.
Not sure what I can do about the search though.
Incidentally, I also noticed that in my recent re-mortgage application Woolwich made two credit searches. I'm guessing one for each of the two illustrations they prepared. Seems a little excessive, but probably just the way they operate.
Searches themselves aren't always a problem - a very well paid and highly solvent friend of mine was turned down for interest free credit at a store because he had no past record of credit at all, simply because he had never needed to borrow money. He's since taken up a credit card that he dutifully pays off in full each month just to establish a credit record.
Too many searches/too much credit showing however may tip the balance...
Too many searches/too much credit showing however may tip the balance...
Piglet said:
It's probably dealt with in the T's & C's so probabaly a case of reading the detail better another time.
Oh, no doubt about that. I was just very surprised to find it sitting there on my credit file when all I'd done was buy something online with my credit card, that's all. 
JonRB said:
Piglet said:
It's probably dealt with in the T's & C's so probabaly a case of reading the detail better another time.
Oh, no doubt about that. I was just very surprised to find it sitting there on my credit file when all I'd done was buy something online with my credit card, that's all. It's bleeding irritating having to read every T&C and search for boxes these days to make sure someone isn't managing to expoit you in some way!!
Note to self - need to reinstate my Experian contract. I resent having to pay for it but at least you do get alerted early to this kind of thing.
Piglet said:
Note to self - need to reinstate my Experian contract. I resent having to pay for it but at least you do get alerted early to this kind of thing.
Yup - with you on that. It was only laziness on my part that I didn't notice it at the time as I get the email alerts from Experian with my CreditExpert subscription. Gassing Station | Business | Top of Page | What's New | My Stuff