MARAS credit check - what does it actually check?

[PlanB]

Re: MARAS credit check - what does it actually check?

Would likely be a breach of their data sharing agreement under SCOR I think, and hence the terms of their access to CRA data.

Are you saying that Tenant Referencing Services have CRA access restrictions which prevent them knowing if the account they are searching has any Defaults regardless of which creditor issued them? In which case that makes nonsense of the search. Defaults matter when making financial risk decisions. Letting Agents are fed up with being sued for not carrying out due diligence. They are more thorough now than ever.

[Never-In-Doubt]

Re: MARAS credit check - what does it actually check?

Usually they get the info by scaring you into admitting it on the application as SnV found out.

I told him to not to mention defaults but I think he might have. In theory if you don't tell them they'll never know as a default is NOT public info.

[Never-In-Doubt]

Re: MARAS credit check - what does it actually check?

Read the Principles of Reciprocity and it'll help understand and involves SCOR as per Riz earlier post.

http://www.experian.co.uk/downloads/...or18042006.pdf

in theory no lender can see the name of another lender with any sharing. All they see is product type. They don't see the lender details. Period.

Letting agents will not be part of the Principles of Reciprocity so won't see anything other than public info.

[Riz]

Re: MARAS credit check - what does it actually check?

Are you saying that Tenant Referencing Services have CRA access restrictions which prevent them knowing if the account they are searching has any Defaults regardless of which creditor issued them?

Principle of reciprocity and closed access groups, yes.

There is a detailed document on the SCOR website that sets that out in mind numbing soporific detail.

EDIT: See above.

[Never-In-Doubt]

Re: MARAS credit check - what does it actually check?

I'm sure Riz & I are in the wrong job. We love explaining CRA's to people - not!!

ive so far avoided SCOR and hope with the FCA I'll not have to sit and read it all.

[PlanB]

Re: MARAS credit check - what does it actually check?

Usually they get the info by scaring you into admitting it on the application as SnV found out.

I told him to not to mention defaults but I think he might have. In theory if you don't tell them they'll never know as a default is NOT public info.

The question on the MARAS form is "do you have any adverse credit" not do you have any Defaults. That's not scaring anybody and it's a perfectly reasonably question to ask.

I speak as a Landlord who is currently having to pay £11k in legal costs after I was duped by a Letting Agent who rented my property to a lowlife scumbag who didn't pay rent and they failed to reference. Perhaps I'm not the best person to comment on whether it's fair for a Landlord to know the financial circumstances of who will be taking possession of their property (their financial asset).

No SnV didn't admit to any Defaults. He did as I suggested which was "Yes" (because that's the truth) and then put "I'd be happy to discuss".

[Riz]

Re: MARAS credit check - what does it actually check?

ive so far avoided SCOR and hope with the FCA I'll not have to sit and read it all.

If you ever suffer insomnia, it's a godsend.

[Riz]

Re: MARAS credit check - what does it actually check?

If CRA checking and reporting was "fair" then this and other consumer forums would only get about 2/3s the threads they do. :P

"fair" is about as far as you can get.....

[Never-In-Doubt]

Re: MARAS credit check - what does it actually check?

The question on the MARAS form is "do you have any adverse credit"

Adverse credit technically means defaults / CCJS / IVA's etc. A late payment is not considered adverse.

So the question is misleading, which is what I meant to say

[Never-In-Doubt]

Re: MARAS credit check - what does it actually check?

If you ever suffer insomnia, it's a godsend.

tell me you never sat up and read it

[PlanB]

Re: MARAS credit check - what does it actually check?

or if they have access for another reason should not be abusing that access to check that level of data for a tenant check.

I suppose since the agency I was dealing with also has a mortgage arm (in-house brokers) they may have abused their enhanced access (as a mortgage brokerage) to obtain the information.

I think you need to explain those CRA/DPA/SCOR/FCA technical notes to property based agencies which have multiple business activities because that may be where the problem lies.

[PlanB]

Re: MARAS credit check - what does it actually check?

Adverse credit technically means defaults / CCJS / IVA's etc. A late payment is not considered adverse.

A late payment leading to a Default could be seen as *adverse* credit. As will late or missed rent payments since the Experian Rental Exchange scheme was launched in 2012. The spin put on it at the time was that this would help those with a good rent payment record to build up a good CRA financial profile. There was no mention of the negative impact on those with a bad rental payment history.

http://www.theguardian.com/money/201...s-credit-files

Experian explains who can and can't see this information. It also says alarmingly "the data will be accessed when the tenant applies for goods or services where a credit check is made". So I assume that data will be available to creditors as well as letting agents who supply the information in the first place.

http://www.experian.co.uk/rental-exc...g-tenants.html

I'm changing the subject slightly, but since the UK is heading for a generation of renters this will naturally lead to a tightening-up of Tenants' financial criteria. If mortgage lenders are doing it then why not Landlords? Big banks and financial institutions can afford to take a hit with the odd repossession, but a private Landlord can lose their livelihood (if no rent) and their own home (when repossessed because they couldn't keep up with their own mortgage payments due to rent arrears) if they are conned into taking a Tenant who hides their true financial situation or a sloppy agent who is supposed to be acting in their best interests .

Like I said, I'm probably not the best person to comment since I may be seen as biased even though I consider myself an ethical Landlord

[Never-In-Doubt]

Re: MARAS credit check - what does it actually check?

A late payment cannot lead to a default. They must comply with ICO technical guidance which means there must be between 3-6 months payments missed and in that case I agree it is adverse. An AP or loads of late markers shouldn't be classed as adverse but generally are.

A default in all circumstances is the true meaning of adverse which is why lenders hold us hostage with them. The tenancy reciprocal agreement won't work as it's too dear for smaller firms / sole landlords to subscribe to plus you need to agree to the Principles of Reciprocity and pay out a lot so although it's new by 2 years it's not being utilised, really.

[Riz]

Re: MARAS credit check - what does it actually check?

Yes, and as it says.

Landlords and lettings agents using the Rental Exchange will only have access to information about a potential tenant's past rent payment history and not the other financial information held within an individual credit record.

[PlanB]

Re: MARAS credit check - what does it actually check?

Yes, and as it says.

I agree. Unsurprisingly Experian Rental Exchange only holds rental history. Some letting agents and tenant referencing businesses also have access to Experian's more general information on its database.

MARAS also search Insurance Database Services Ltd. These reference providers use various resources.

Maybe this explains the popularity of online letting services such as Gumtree. However some Landlords wouldn't touch them with a bargepole because it sends out the signal the Tenant is only looking online because they know they won't pass an agency reference.

Online letting agencies are ideal for Landlords hoping to avoid paying income tax since from April all Letting Agents have to disclose rent received to the HMRC.