Credit reference agency searches

The practice of interrogating credit reference agency information to assess potential borrowers' credit status is well-established. Rules governing the process have been agreed between the credit reference agencies (CRAs) and participating lenders.

In 2004, CML met with the largest ten lenders, the three credit reference agencies (CRAs) and the Financial Services Authority (FSA) over the FSA's concerns over the registration of searches at CRAs. The FSA and other regulatory bodies had expressed concern that the registration of multiple searches at CRAs might penalise customers who shopped around for the best credit deal. Joint guidance was published following that meeting. 

In January 2007, CML revised and re-issued the guidance (attached) in order to clarify some of the terminology, and the types of credit searches which may be undertaken and the possible impact on customers.