MCL Software operates the National Hunter database. We have reports that the Hunter database stores all the personal details you enter into any mortgage application. But our industry sources say that the Hunter database only stores details from rejected mortgage applications.
We have reports that applications for bank current accounts are checked against details Hunter holds about you, but our industry sources say that only suspect mortgage applications are checked against Hunter's database. Obviously, someone, somewhere has got it wrong.
Lenders and banks check your application details against Hunter because they want to see if the application details have changed between one application and the other (which the lending industry interprets as possible fraud).
In our opinion, the fact that MCL Software is keeping your personal details from successful or unsuccessful mortgage applications and that banks are also checking your bank account application details against it, effectively makes MCL Software a third, but unpublicised, credit reference agency.
One source says that Royal Bank of Scotland does refer to MCLS as a credit reference agency.
http://www.netcarco.co.uk, a division of Royal Bank of Scotland, lists both CIFAS and MCL as credit agencies in their 'we may check with' bit.
We want to know if MCL Software is also keeping details of bank account, credit card, mobile phone and other applications.
We think the lending industry was - and maybe still is - keen to keep the existence of MCL Software and its Hunter database quiet. You can confirm its existence for yourself if you look at the small-print on the back of many mortgage application forms. Unfortunately, that will not tell you if MCL Software is keeping details of your bank account applications.
Here's the official version of how Hunter works (note: we were told this in confidence but even so, we think it does not tell the whole story):
Lenders want to see if the applicant has applied for - and been rejected for - another mortgage. If they do find a previous mortgage application, they contact the mortgage lender that rejected the previous application and check to see if any of the application details are different. If any details are different, the second lender alerts CIFAS, the Credit Industry Fraud Avoidance System Ltd. CIFAS's operations are detailed elsewhere on this site.
When we served a Data Protection Act subject access rights notice on MCL they said they had no information about the repossessee we named - even though the repossessee had been offered mortgages within the last year. However, we know of one honest customer who claims the details in MCL Software's database played a significant role in his losing his job. For legal reasons we cannot give you all the details of his case. He discovered MCL Software's role when he served a Data Protection Act subject access rights notice (a SARN) on his bank after a bank accused him of fraud. The bank's response showed it had compared his bank account application details against details in the Hunter database. It had then sent the information to CIFAS - the Credit Industry Fraud Avoidance System Ltd.
We know MCL Software works quite closely with Experian to try to stop mortgage fraud. Here's a quote from a press release Experian put out in December 1996:
"Furthermore, in July this year a strategic alliance was formed between CCN and MCL Software, producers of Hunter, the highly successful PC-based fraud detection tool which has prevented many millions of pounds of fraud losses in the mortgage sector. By combining resources and market intelligence, CCN and MCL Software are tackling application fraud in an aggressive manner for the benefit of lenders and consumers."
We'd very much like to know more about this company.
Various anonymous contributors have supplied information about MCL in 2000:
"When a lender underwrites an application they will normally credit search either Equifax or Experian (or both). A lot are now using window-based scoring systems that will then immediately default to National Hunter. Key information from subject name, address, D[ate]O[f]B[irth], bankers, NI Number, solicitors and property they are intending to purchase are all entered. This information will then be matched to existing application details from previous mortgage applications and some consumer credit applications.
Data matching is now quite a common anti fraud tool, experian uses CCN DETECT and Equifax operate FRAUD HUNTER. Basically, application data is pooled and then matched accordingly. It is not 100% accurate and can be foxed but I think if you check the 1995/6 Building society yearbook it will advise that just under 400 applications were rejected that year due to positive Hunter matches. Unfortunately Hunter is hard to penetrate and I think, although cannot prove, that MCL will deliberately blur data so that they don't release individual data on subjects. Certain lenders, if you DPA them, will advise you when they transmitted data on to Hunter. Nationwide will definitely do this. Hope this is of some help to you as I know how frustrating it can be."
Another added more detail of what MCL Software stores:
Just for your information, MCL National Hunter, is effectively a data matching tool used as part of the credit underwriting process of certain lenders. It is not exclusively used for mortgages as Abbey National, Smile, Egg as well as many mortgage lenders use it for both mortgage and other consumer credit lending.
Selected information is entered from the consumers application. Main data is name, address, dob, bank account number and sort code, previous address, home and work telephone numbers, NI number and Employers Name, Address and telephone number.
This is then stored on the MCL Hunter database. Lenders can then examine the information and should there be inconsistancies or an undisclosed search, then the matter will be pursued. MCL will supply details under the DPA / 74 CCA of the records they hold on you. The answer is to tell the truth on the form and should you have previously applied for credit, disclose it. Likewise if your details have changed (esp in relation to the headings above), make it very clear to the lender.
Another contributor supplied this information about MCL in July 2001:
1. Hunter Systems
Hunter is the name given to a software product developed and sold by MCL Software Limited. It detects frauds by comparing current applications received against previous applications received, to identify inconsistencies in the data, multiple applications etc.
Hunter systems can be set-up in a number of different ways:
a) Local Hunter the system only matches data from within one company. For example: today’s mortgage applications are cross-matched against the applications received in the previous X years. Data on the individual may be held on the company Hunter system and by MCL.
b) Group Hunter the system matches data across all the companies in a Group of companies. For example: today’s mortgage applications to XX Bank are cross-matched with XX Bank’s credit card and current account applications. Data on the individual may be held by the individual company Hunter system, by the Group Hunter system and by MCL.
c) Industry Hunter the system matches data across companies in an industry who have agreed to allow their data to be used for this purpose. Mortgage Lenders have set up an industry Hunter, so have insurance companies and Local Authorities have set up an industry Hunter for Council Housing Benefits.
For example: an application for motor insurance to ‘Telephone Direct’ is matched with motor insurance applications to ‘Insurance On-line’ and ‘Owl Car Policies’. If there is a match it is reported to the insurance company concerned. Data on the individual may be held by the individual company Hunter system, the Group Hunter system, by the other companies in the industry on their Hunter or Group Hunter systems and by MCL.
d) National Hunter the system matches data across up 50 or more companies who have agreed to allow their data to be used in this way. For example: an application for a mortgage is cross- checked against millions of applications received by any of the 50 plus companies, as far back as 6 years ago. Any match is reported to the company concerned. Data on the individual may be held by the individual company Hunter system, the Group Hunter system, by the other companies in National Hunter on their Hunter or Group Hunter systems and by MCL. National Hunter includes nearly all the mortgage lenders and many credit cards and personal loan companies. Nearly all banks and building societies use National Hunter. CIFAS data on confirmed frauds is held on National Hunter.
2. How Does Hunter Work?
Applications received by the company are entered into their own databases and the application data is passed or transmitted to MCL. They cross-match it against other application and fraud data, including CIFAS according to which Hunter scheme, the company participates in. If it is the most widely used National Hunter, any matches are reported back to the National Hunter members to investigate. National Hunter matches are decided by a set of rules as to what is a match and what is not.
Example: A mortgage application is made to a National Bank. It matches against 6 applications to other mortgage lenders and against 3 applications for credit cards. The matches are reported back to the Bank and the data is stored on its internal Hunter system. The Bank investigates the matches, and sees the matching application data in full through the system. They then decide the mortgage application is fraudulent and place an indicator on their Hunter systems that is transmitted to the National Hunter database at MCL to indicate the application is a fraud. No-one will then do any business with that customer.
If National Bank decide the application is just suspicious rather than fraudulent, they place a suspicious indicator on their Hunter database.
These indicators are stored by the individual company Hunter system, the Group Hunter system, by the other companies on their Hunter or Group Hunter systems and by MCL. If a mistake is made, how can the individual ever know all the records have been corrected? Never.
The fraud data is kept for 6 years or more and stops individuals ever getting a mortgage during that time. Other fraud data (including mortgages) in the industry is discarded earlier than this. Why is Hunter fraud data treated differently? The Data Protection Commissioner lets them get away with this.
Data is stored on so many parts of Hunter by some many companies on different databases, that when a mistake is made and later corrected, how can a customer have any confidence the data has been removed from every database?
When a mistake is made, one fraud database may be corrected, but there are no procedures to ensure all the others are. Hunter, CIFAS, and any others should be required to ensure this is the case.
The Chairman of Hunter is a woman from Nationwide Building Society. The Hunter Association is not a limited company so you can take her to court personally if you find something wrong with the data. Only when someone does so will this system become transparent to consumers. Others on the Association management committee are from Britannia Building Society, Northern Rock, Grabbey National, Barclays, and so on.
from anyone@anywhere.com (Anonymous)
Clearly, at the time of writing, Nationwide are a big fan of Hunter. Another source says smaller lenders may often prefer to use Hunter over Experian and Equifax:
"Larger lenders will normally have a bespoke application processing system that will link into a CRA (Equifax/Experian) followed by a link into MCL Hunter. Experian for instance offer this as part of their system development. Some lenders will also use DETECT which is in fact a more broad based data matching tool, mainly used more by instant credit providers which also gives a Fraud Score (i.e possible chances of it being a fraudulent application as a score out of 100)."
"Smaller lenders have Hunter as a separate application and so perhaps run a greater risk of information being wrong as it has to be keyed twice."
And if the lender finds a discrepancy in an application...
"No...refer to CIFAS does not flash up-CIFAS warnings only appear if already loaded on an address. The lender will be able to see the details of the other lender who made the hunter entry and they will be contacted. Lender will talk to lender and only if it is a serious discrepancy will an investigation be made and if confirmed, will it be forwarded to CIFAS. Not every lender subscribes to CIFAS nor does every lender subscribe to Hunter. Sometimes some of the smaller lenders use Hunter more heavily than larger institutions."
MCL's address is:
MCL Software Ltd
Hesketh Mount
Lord Street
Southport
Merseyside
PR8 1JR
Tel: 01704 501001
Fax: 01704 533003
MCL Software's entry in the Data Protection Commission's database at http://www.dpr.gov.uk/ disappeared in September 2000, prompting one source to comment:
Re MCL's disappearance from the DPR, have you considered that they might store no data, but request it from lenders fro(sic) every check - This technique is not unknown in data matching.
MCL Software re-appeared on the Information Commissioner's database in May 2001. You can see details of what data it is keeping by visiting the Information Commissioner's site here: http://www.dpr.gov.uk/cgi-bin/dpr98-search.pl?source=DPR&Fieldname=MCL+Software&Fieldaddress=&Fieldpostcode=&Fieldsubdiv=&Fieldactivities=&Fieldregistration=&begin=0&number=20&.submit.x=0&.submit.y=0
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