Important Data Protection
The following questions and answers will help you understand the way in which Magellan Homeloans uses the services provided by credit reference and fraud prevention agencies and manages your personal data
Q: What is a credit reference agency?
A: Credit reference agencies (CRAs) collect and maintain information on consumers' and businesses' credit behaviour, on behalf of organisations in the UK.
Q: What is a fraud prevention agency?
A: Fraud Prevention Agencies (FPAs) collect, maintain and share, information on known and suspected fraudulent activity. Some CRAs also act as FPAs.
Find out more about FPAs at www.nhunter.co.uk or National Hunter, PO Box 2756, Stoke-on-Trent, ST6 9AQ.
Q: Why do you use them when I have applied to your organisation?
A: Although you have applied to Magellan Homeloans and we will check our own records, we will also contact CRAs to get information on your credit behaviour with other organisations. This will help us make the best possible assessment of your overall situation before we make a decision.
Q: Where do they get the information?
A: From publicly available information, including:
- The Electoral Register from Local Authorities
- County Court Judgments from Registry Trust.
- Bankruptcy (and other similar orders) from the Insolvency Service.
- Fraud information may also come from fraud prevention agencies.
- Credit information comes from information on applications to banks, building societies, credit card companies etc and also from the conduct of those accounts.
Q: How will I know if my information is to be sent to a CRA or FPA?
A: You will be informed when you apply for a mortgage if your application data is to be supplied. The next section will tell you how, when and why we will search at CRAs and FPAs and what we will do with the information we obtain from them. We will also tell you if we plan to send payment history information on you or your business, if you have one, to CRAs. You can ask at any time the name of CRAs and FPAs.
Q: Why is my data used in this way?
A: We and other organisations want to make the best possible decisions we can, in order to make sure that you, or your business, will be able to repay us. Some organisations may also use the information to check your identity. In this way we can ensure that we all make responsible decisions. At the same time we also want to make decisions quickly and easily and, by using up to date information, provided electronically, we are able to make the most reliable and fair decisions possible.
Q: Who controls what such agencies are allowed to do with my data?
A: All organisations that collect and process personal data are regulated by the Data Protection Act 1998, overseen by the Information Commissioner's Office. All credit reference agencies are in regular dialogue with the Commissioner. Use of the Electoral Register is controlled under the Representation of the People Act 2000.
Q: Can just anyone look at my data held at credit reference agencies?
A: No, access to your information is very strictly controlled and only those that are entitled to do so, may see it. Usually that will only be with your agreement or (very occasionally) if there is a legal requirement.
Please read this section very carefully, it will vary from lender to lender
What we do
1) When you apply to us for a mortgage, this organisation will:
a) Check our own records for information on:
i) Your personal accounts
ii) and, if you have one, your financial associates'* personal accounts
iii) if you are an owner, director or partner in a small business** we may also check on your business accounts.
b) Search at credit reference agencies for information on:
i) Your personal accounts:
ii) and, if you are making a joint application now or have ever done the following we will check your financial associates' personal accounts as well:
previously made joint applications
have joint account(s);
are financially linked***;
iii) if you are a director or partner in a small business we may also check on your business accounts;
c) Search at fraud prevention agencies for information on you and any addresses at which you have lived and on your business (if you have one)
2) What we do with the information you supply to us as part of the application:
a) Information that is supplied to us will be sent to the credit reference agencies.
b) If you are making a joint application or tell us that you have a spouse or financial associate, we will:
i) Search, link and/or record information at credit reference agencies about you both.
ii) Link any individual identified as your financial associate, in our own records
* A financial associate is someone with whom you have a personal relationship that creates a joint financial unit in a similar way to a married couple. You will have been living at the same address at the time. It is not intended to include temporary arrangements such as students or rented flat sharers or business relationships.
** A small business is defined as an organisation which might be sole trader, partnership or a limited company that has three or less partners or directors.
*** Credit reference agencies may link together the records of people that are part of a financial unit. They may do this when people are known to be linked, such as being married or have jointly applied for credit or have joint accounts. They may also link people together if they, themselves, state that they are financially linked.