Credit rating
What are credit reference agencies?
The three main credit reference agencies in the UK are Callcredit, Equifax and Experian. These agencies hold certain information about most adults in the UK. This information is called your credit reference file or credit report.
How is my credit rating affected by bankruptcy?
Credit reference agencies keep information about you. The official receiver does not send notice of the bankruptcy order to credit reference agencies, but they usually find out through the advertisement of the bankruptcy order and it will be recorded on your file. Many lenders use a credit scoring method based on the information provided to them and held by a credit reference agency.
How is my address affected by bankruptcy?
When a bankruptcy order is made, details of the bankrupt are placed in the London Gazette and sometimes advertised in a local newspaper’, including addresses at which you currently live and trade, and previous such addresses. As a result, a bankruptcy order may become associated with an address. If you live at such an address, you may have difficulties in obtaining credit. This is because it may be assumed that you are the bankrupt with which the address is associated.
You have the right to inspect information held by credit reference agencies and to have any incorrect information changed. Further information is available in a leaflet called ‘Credit explained’ available from the Office of the Information Commissioner by clicking on the link below:
I have been refused credit. What I can I do?
If a lender uses credit scoring and you are refused credit, you can ask the lender to explain the main reason why. For example 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.
How can I get the Land Charges entries removed?
When a bankruptcy order is made, it is recorded in the Land Charges Register held by Land Registry. The entry lasts for five years. When you are discharged from bankruptcy you can apply to the court to have the land charges entries removed. The land charges entries are not the same as a bankruptcy restriction or Form J restriction, which are entries in the Land Registry against specific properties. These cannot be removed until the trustee in bankruptcy has realised (sold to somebody) their interest in the property or the property re-vests (transfers back to you). Once the property has been sold or it has transferred back to you, the trustee should have applied for the re-vesting to be shown on the register.
My credit reference file has a default for a debt which was included in my bankruptcy. Is this right?
Yes. If a debt has been included in your bankruptcy, the creditor should have marked the account in default. The default will stay on your credit reference file for six years from the date of the default. After you have been discharged from your bankruptcy you can send proof of your discharge to every creditor included in the bankruptcy.
Those people whose debts were included in your bankruptcy should then mark the entry on your credit reference file to show that you no longer owe money on that account. They could do this by marking the entry as ‘satisfied’ or ‘settled’ or in some other way. However, the default will not be removed from your credit reference file until six years from the date of default. If you wish, you can ask the credit reference agency to add a statement called a ‘Notice of Correction’ to the default entry.
In your statement to the credit reference agency, you may like to say that the entry was included in your bankruptcy.
More information about ‘Notices of Correction’ can be found in the ‘Credit Explained’ booklet which is free, from www.ico.gov.uk by clicking on the link below:
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf
- from The Information Commissioner’s Publications Line on 08453 091 091; or
- on request to the Information Commissioner’s address at:
Information Commissioner’s office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF
I’ve noticed that a debt that was included in my bankruptcy is marked in default later than my bankruptcy. Can I do anything to change it?
Sometimes a creditor will not know the exact date you were made bankrupt. This may mean that when the creditor registers a default with the credit reference agencies, the date on the default is later than the date on your bankruptcy order.
If a particular debt is included in your bankruptcy, you can ask the creditor to change the date of the default to the date on your bankruptcy order. To do this, you should write to the creditor and ask them to change the default date to the date of the bankruptcy order.
Who is the Information Commissioner?
The Information Commissioner enforces the Data Protection Act 1998 and the Freedom of Information Act 2000. The Data Protection Act 1998 gives you the right to ask for a copy of your credit reference file and to correct any information that is wrong. If the lender refuses to change the date of the default you can write to: Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF.
You will need to send them a copy of the bankruptcy order and documentation that confirms the date you were made bankrupt and a copy of the lender’s letter which says it won’t change the date of the default.
How can I record my discharge on my credit file?
The credit reference agencies receive discharge information automatically from the Insolvency Service’s Electronic Individual Insolvency Register (EIIR) so your credit reference file should be automatically updated 3 months after the date you are discharged.
If more than 3 months have passed since you were discharged from bankruptcy and your details have not been updated you should send written confirmation of your discharge (e.g. a copy of your Certificate of Discharge from the court or a letter from the official receiver) to the credit reference agencies and ask them to update your credit reference file to show you have been discharged.
How long is the information held on my credit file?
The bankruptcy entry will remain on your credit reference file for six years from the date of the bankruptcy order even if you have been discharged and have told the credit reference agencies. Those people whose debts were included in your bankruptcy should then mark the entry on your credit reference file to show that you no longer owe money on that account (perhaps by marking the entry as ‘satisfied’ or ‘settled’ or in some other way).
After six years, the credit reference agencies will automatically remove the bankruptcy entry from your credit reference file.
My credit reference file shows that my bankruptcy has been discharged. Shouldn’t the credit reference agency have removed the record of my bankruptcy?
Even if you have been discharged from bankruptcy, the record of your bankruptcy will stay on your credit reference file for six years from the date of the bankruptcy order.
When you have been discharged from bankruptcy you can ask the creditors to mark any debts included in your bankruptcy as ‘satisfied’ or ‘settled’ or to indicate in another way that you have fulfilled your obligations to that creditor.
You will need to write to all the creditors who were included in your bankruptcy and give them proof of your discharge before they will be able to change the information on your credit reference file.
Once the creditor has changed the information on the entry, if you make any new credit applications the prospective lender will be able to see that you do not owe any more money on that account.
Finally, if you wish, you can ask the credit reference agency to add a statement called a ‘Notice of Correction’ to the default entry. In your statement, you may like to say that the entry was included in your bankruptcy. More information about ‘Notices of Correction’ is in the ‘Credit Explained’ booklet, which is free, from www.ico.gov.uk by clicking on the link below:
My bankruptcy has been annulled. What will happen to my credit reference file?
If your bankruptcy has been annulled but the annulment was not advertised publicly, some of the credit reference agencies will require you to send proof of the annulment. Once notified the agencies will remove all reference to the bankruptcy order.
How can I get a copy of my credit reference file?
You can get a copy of your credit reference file from the credit reference agencies listed below:
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Callcredit Plc, Consumer Services Team, PO Box 491, Leeds LS3 1WZ
0870 060 1414
www.callcredit.co.uk
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Equifax Plc, Credit File Advice Centre, PO Box 1140, Bradford BD1 5US
0870 010 0583
www.equifax.co.uk
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Experian Ltd, Consumer Help Service, PO Box 8000, Nottingham NG80 7WF
0844 481 8000
www.experian.co.uk
You can order and view your £2 statutory credit report online or choose to have it posted to you.
You will need to write to the credit reference agencies and give:
- your full name,
- your current address,
- any other addresses you have lived at in the past six years
- a cheque or postal order for £2.00 made payable to Equifax Plc, Experian Ltd or Callcredit Plc.
Unless the credit reference agency needs more information from you, it has seven working days from receipt of your request to supply your credit reference file.
Where can I find more information?
More information about the credit industry, credit reference files and credit reference agencies can be found in the ‘Credit Explained’ booklet. The ‘Credit Explained’ booklet, which is free, from www.ico.gov.uk by clicking on the link below:
Credit Reference Files – frequently asked questions about bankruptcy and the information on credit reference files are available at the following link: http://www.ico.gov.uk/Global/faqs.aspx
