Loan brokers - are they messing up my credit score??

Hi everyone,

I' hoping someone can tell me if I made a huge mistake by ticking a 'terms and conditions' box on a loan broker site and whether or not I can stop it...

About a month ago I started working for a bank and I nearly did not get the job because my credit score was not so great. I signed up for Experian to have a look for myself and saw that two credit cards in arrears had put 2 defaults on my record and my credit score was in the 'fair' category.

As an idea, I considered a debt consolidation loan to wipe out the defaults and visited eurocredit-loans.com . I made an application without reading the terms properly and before I knew it I was receiving constant calls and SMSs every day from loan companies who had received my details from this site.

I contacted eurocredit and asked them to delete my application and they got back to me and told me they had done so, but the calls keep coming. Disturbingly, one of the loan companies told me that these broker applications have a chain effect, that once my details are passed to one place they are then passed to another and so on until the original company has no clue where my details have spread to.

What I am concerned with though, is not whether these lenders have my contact details, but whether they each have authorisation to search my credit report without asking me, all because of some small print on the original broker's site?

I signed into my Experian credit report today and saw that at least one loan company made a search on my credit report and my credit score has dropped by 100 within the last 3 weeks, and now I am labelled as 'poor'.

Does this indicate that my fears are confirmed? Surely there must be some legal action to stop people searching your credit report whenever they feel like it, maybe months after you made a loan application.

Melanie

Reply to
Melanie
Loading thread data ...

Hi Melanie, Loans Brokers are the WORST people to goto!! Unfortunatly when you sign up with a loan broker your details get passed on to many other loan/lending companies, some use 10 lending companies and some use 100 and as you mentioned with the "Chain Effect" that really is how it is.

See when you sign on the dotted line, your giving them permission to pass on your details to there "loan sources" and allowing them to search your credit score and each time anyone does a credit check on you for whatever reason, that is stored on the file and acts as a negative effect on your rating and it kind of sucks because you are in a no win situation because you need a loan but everytime someone does a search it has potential harm.

I'm unsure about legal action, but there is something you could do and that is call eurocredit and ask them for a list of there "loan/lender providers" because you want all this to stop, they should supply you with that info and then call them all up BUT seeing as you called them and asked them to close your application, you may not be on there system anymore and if that is the case they may not give you the info you require.

I know it's a long winded way, but atleast you have the peace of mind that it's all stopped.

Hope this helps you

Thank you

Sin

formatting link

Reply to
Sin

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.