Your credit reference agency file is one of the two main tools lenders use to work out if you have enough money to pay them. Find out what it says now and get another copy every year or so if you want to predict whether a lender is likely to chase you after repossession.
Once you have received a shortfall letter, you should request your credit reference files and check them for recent credit searches. You are looking for any recent credit searches that were made by companies from whom you had not applied for a loan or account.
We think lenders routinely perform such credit checks before issuing a shortfall letter. But we also think such checks are illegal under the right to privacy clauses of the Human Rights Act.
As a result, if the lender issues a court claim against you and you do have a strange credit check by the company or its agents, we think you should counterclaim that the company breached your right to privacy.
We know at least one major lender is worried that repossessees will use the Human Rights Act against them for carrying out these credit checks.
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