Credit reference agencies, of which there are three in the UK, collect and file both good and bad information on your credit history and if you have a good track record, this can stand you in a good position, just as a bad credit history will work against you.

These days we cannot count on banks, financial institutions and retail organisations to respect the confidentiality of our financial transactions. Some firms still do, but many do not, most readily pass on financial information about their financial dealings with you to the credit agencies.

There is not a lot you can do to stop this happening, but under the 1974 Consumer Credit Act, you can ensure that the information they have about you is correct.

If you are refused credit for up to £25,000 you should write (keeping a copy of all the letters) to the shop or finance house or wherever you were turned down from within 28 days, asking them why you were refused credit and asking for the name of any of the credit reference agencies they contacted. If they do not want to, they do not have to tell you why they refused you credit, but they must within 7 working days tell you the name and address of any of the credit agencies they contacted.

Section 158 of the 1974 Consumer Credit Act gives you the right to write to the credit reference agency asking for a copy of your file. You should say that you are writing to them under Section 158 and enclose a £2.00 fee. You also need to send them the detail about your full name, your current address and any previous addressed in the past 6 years.

The agency then has 7 working days from receipt of your letter to send you a copy of your file or otherwise tell you they have no records about you.

If you see that any details are wrong or misleading, you can then write back to them asking the agency to correct or remove the error(s), which they must confirm they have done within 28 days of receipt of your letter. If not, you have 28 days in which to send your own note of correction in not more than 200 words.

If the agency refuses to accept your correction or you hear nothing back from them within a further 28 days, you should complain to the Office of Fair Trading at:

Office of Fair Trading,
Fleetbank House,
2-6 Salisbury Square,
LONDON,
EC4Y 8JX

You should send copies of all correspondences. The Office of Fair Trading should then intervene for you.

Once the agencies file on you has been amended, the credit reference agency must send the corrected details to anyone who has previously asked for your details during the past 6 months, and the credit agency must use these changed details in the future.