The credit information specialist, checkmyfile.com, has warned that the Government will fail to protect consumers fully with its Consumer Credit Bill, which began its second reading in the House of Lords recently. The Bill intends to update the Consumer Credit Act with measures such as forcing credit providers to make deals in a more transparent way, tackling loan sharks and providing a way for consumers to report unfair practices. But the company believe that the Bill doesn't tackle issues such as giving the customers a right to demand a reason for being refused credit.
It also makes no provision to force lenders to use data from all three credit reference agencies, rather than just one. They consider that using all three would make sure that decisions were made using the full picture, resulting in a fairer assessment.
Our view
We agree with checkmyfile. A half way house is no good. Use all agencies to be accurate and give the full facts for a declinature.