Correcting information held on a credit reference file
If the client considers that any of the information in the file is wrong and is likely to cause prejudice as a result, they can write to the lender or the credit reference agency. However, as the credit reference agency would have to contact the lender to ask it to investigate the complaint, it might be quicker to write to the lender and send a copy to the credit reference agency. The client should state why the information is wrong and submit any supporting evidence – eg, that a debt has been paid. The agency must respond in writing within 28 days, stating either that it has corrected or removed the information, or done nothing.1S159 CCA 1974 While the agency checks its accuracy, the information is marked ‘account query’. If the agency fails to remove the information or the client disagrees with the proposed amendment, they can ask the agency to add their own ’notice of correction’ to the file – eg, an explanation of how the debt arose. This must be up to 200 words and sent to the agency within a further 28 days. The agency must inform the client within 28 days if it accepts the notice. If it does not, the agency must refer the case to the Information Commissioner for a ruling.
If the client receives no response after writing to the lender and/or the credit reference agency, they can complain to the Information Commissioner. A client can also complain to the Information Commissioner if they believe inaccurate information is being held but a ‘notice of correction’ is not appropriate – eg, it should be completely removed. If the information about the client’s credit history is factually correct, it is not removed just because they do not want it made public.