Lenders look for signs that you have money to spend again. They regularly trawl the main credit reference agencies’ databases for signs that you are able to borrow. Credit reference agencies such as Equifax have subsidiaries that trace repossessees (in Equifax's case, the tracing agency is called Wescot and is based in Glasgow). We have evidence that the credit reference agencies pass on details of your applications for credit to their tracing agency subsidiaries. This may cause you serious problems. When you fill in an application for credit the income details often - but not always - include who you work for and how much you earn. This is the most important piece of information a lender chasing you for a mortgage shortfall looks for. The reasons for this are set out elsewhere in the Do's and Don'ts section.
Credit application forms help all lenders decide how much credit you can have and how likely you are to pay it back regularly. Mortgage lenders know this, so signs that you are able to get even small amounts of credit are likely to trigger a letter claiming cash from you, though it will still ask for details of your income. If you seem able to get large amounts of credit but reply to a cash demand letter saying you only have a small income mortgage, lenders could use the credit reference agency information to work out if you are lying and are still worth chasing.
We have strong evidence showing credit reference agencies pass personal details from mobile phone application forms to lenders. Our Data Protection Act searches of lenders' databases have turned up ex-directory telephone numbers and details of information from credit application forms that are not visible in a normal credit reference agency file. When applying for anything that involves filling out a form, be aware that the answers you give may be given to a credit reference agency but not revealed to you if you use the Data Protection Act to search that credit reference agency's files. Anyone who suspects this has happened to them is advised to contact us.
We also have evidence that some tracing agencies (they're called "skip tracers" in the trade, by the way) ring up repossessees pretending to be from the Inland Revenue, Contributions Agency, DSS or Housing Department and try to confirm addresses, earnings details, where you're working if you have found another job. Given that knowing who you work for makes taking you to court much more profitable (for reasons outlined elsewhere in the Do's and Dont's section), we recommend that readers should be cautious about giving personal details to strangers over the phone.
We have seen a report that the Inland Revenue is aware of this and wants to stop it. The Inland Revenue wants anyone who thinks they may have experienced it to contact it.
Another common trick is to pretend to be from a parcel delivery company that only has your old address (you might like to ask yourself why anyone is sending a parcel to an address you no longer live at) and to pretend to be offering some sort of prize if you call.
Obviously, many people consider this kind of activity to be an invasion of privacy and would bring lenders into disrepute if they were known to be doing it. Using skip tracers to do it helps the lenders' hands clean. We have received alerts from several readers who saw this kind of suspicious activity before or during a shortfall dispute.
| Home Page | Receive free news and updates |
| Tell a friend about this site | |
| © The Home Repossession Page 1997-2000 | |