Loan credit Searches inpact my score?

[Surfer01]

Last year we were looking for a loan of about £2000 at the best rate of interest but you can only find the best rate of interest once they have done a credit search. This then reflects on any future borrowing for the next year even if one decides not to take a loan anyway.

Can they legally hold these searches on your file as you do not have a written agreement with any finance institution although at the time you verbally agreed to a credit search with the potential lender?

We decided against the load at the end if the day due to a higher than advertsied interest rate although our credit history is fine.

[nathal]

write letter to company that carried out the search saying it was unauthorised, as you did not give your permission for the search. I'll try to get a template letter.

 

address

 

 

Re: Unauthorised credit enquiry

 

Dear Sir/Madam

 

I would like to bring to your kind notice the contents of the latest credit report that I have received from the credit reference agencies.

 

The credit reflects a credit enquiry from your company which I did not approve. I believe that legally you are not entitled to enquire on any debt amount without my authorization. I request you to delete this enquiry from my credit report with immediate effect as it is causing a hindrance in my acquiring a loan and other credit benefits.

 

I have used recorded mail to send you this letter so I may ensure that you receive it and send me a prompt response. Please forward me a written document stating the removal of this unauthorised enquiry.

 

In other cases, kindly forward me a document containing the proof of the enquiry mentioned by you.

 

Thanking you in earnest,

 

name

 

btw enclose a copy of credit file and circle in red the search.

[Surfer01]

Thanks Nathal, does it make any difference that you may have agreed over the phone for them to conduct a search? Unfortunately you normally have agree to this in order to for them to give you a quote. I would think that this would fall into a category called pressure of "under duress" and as we all know a contract/ agreement under duress is not binding.

Your thoughtys on thsi aspect reagrding agreement over the phone and also the "duress" bit would be appreciated.

[nathal]

unless you are speaking directly to the lender, i would try this letter. Alot of applications are done via a broker. Its worth trying this letter for all your searches anyway.

Its usally a good idea to try space out your applications anyway, and not to apply in the same month