In the U.K there are three main Credit Reference Agencies (CRA's) - TransUnion, Equifax and Experian. They work with building societies, banks, mobile phone companies and other major retailers to help those businesses make a quick and accurate decision about whether the person applying for credit is likely to pay it back. At some point in our lives we will all apply for credit - be it a car loan, a mortgage, a mobile phone contract or a new credit card - and whenever you apply for credit, the lender will approach a credit reference agency for information about your credit history, which helps them to make a fair and responsible decision about whether to give you credit. It will also help them protect themselves against fraudulent applications – a seemingly growing problem in the UK.

There are two main Fraud Prevention Agencies (FPA's) in the U.K. These are N Hunter Ltd, who is an independent not-for-profit company, and is primarily concerned with the prevention of application fraud within the banking, finance and insurance industry; and to protect victims of fraud and CIFAS who is a not-for-profit company working to protect businesses, charities, public bodies and individuals from financial crime. They have more than 25 years of experience in fraud prevention and financial crime, working with a range of UK organisations to protect their customers and the public.

Usually when you apply for credit the lender will run a check against one or more of the credit agencies and fraud agencies so it's worth noting that when you apply for credit to use the correct details and do not change / guess fields because you will be picked up on it which could result in a CIFAS fraud warning being registered against you for up to 6 years!

Credit Reference Agencies

It's never been easier to find out what information your lenders & creditors are sharing about you with the credit reference agencies. Thanks to some leading Credit Clubs offering free access to your full credit report & credit score, it's now possible to view all the information that each of the three main credit agencies hold about you. The providers listed below are totally free and because they all use the 'soft search' facility, checking your own report will never impact your ability to get credit.

Fraud Prevention Agencies

All organisations that use Fraud Prevention Agency services must advise their potential or existing customers or claimants (as part of their application or claim process) that they will search the CIFAS / N Hunter databases, that they may exchange information through CIFAS / N Hunter, and how the information may then be used as part of their application or claim process.

Fraud Prevention Agencies enable organisations to exchange information about fraudulent applications for accounts, insurance, services, products or fraudulent claims for benefits, for example:

» Existing accounts, claims or policies that have been accessed or misused in a fraudulent manner;
» Fraudulent insurance or other claims.;
» Innocent victims of fraud to protect them from further fraud.

When an organisation identifies a fraud, a warning with the details of the individual linked to the application or facility is placed on the CIFAS database. The warning shows the name used but this does not necessarily mean the person named is involved in the fraud, as fraudsters tend to use a variety of names, some false and some genuine. The warning does not mean the individual has been blacklisted.

Fraud Prevention Agencies information is not used to assess an individual's ability to obtain or maintain an account, product, facility, insurance policy, benefit or employment. It is only used to prevent fraud - remember, Fraud Prevention Agencies are not Credit Reference Agencies.