The Department of Trade and Industry (DTI) has recently published the Removal of Adverse Consumer Information and Information Relating to Paid up Judgments Regulations 2014 which will come into effect on 1 April 2014. This is referred to in the media as Credit Amnesty.
This legislation means that the existing adverse information on a consumer, excluding unpaid judgments, will be removed from all Credit Bureau reports from 1 April. It’s important to note that the debt is not removed, simply the appearance of that unpaid debt on a Credit Bureau report. New adverse listings and judgments will be added on 1 April, but when they are paid, they will be removed.
The Credit Amnesty Regulations state that any “adverse” and “paid up” information that has been removed may not be used for any reason, including credit scoring and assessments of consumers.
This will affect Credit Bureau searches via WinCredit, from 1 April 2014. In summary:
Consumer Profile Search adverse data to be removed:
Consumer Profile Search data NOT to be removed:
Judgment Searches and Doc Copies – Paid judgments will not appear in a Judgment Search result, and Document Copies for these paid judgments will no longer be available.
WinDeed Person Alerts – Only new unpaid defaults and unpaid judgments will appear for a monitored consumer. Paid judgments and paid defaults will be removed on an ongoing basis by the Credit Bureaus.
Please follow the link to read the full Regulations.
The impact on Credit Bureaus:
The impact on Credit Providers: