Address inconsistencies cause chaos for borrowers

14th October 2014

Addresses that are not listed on online forms are wreaking havoc for thousands of consumers who want to borrow money, but do not have an accurate credit report.

A new study suggests that one in eight people cannot find their address when filling in their details online and that one in five have failed a credit check as a result.

Lenders and other financial services providers, like insurers often use credit reports to verify the identity of a new customer, and often they will refuse to let this person take out a product if their details cannot be easily found.

Typically, people who live in apartment blocks or above shops may find their address is not properly listed or that the flat number is formatted differently on different websites making it impossible to keep their address consistent across all the companies they deal with, the research commissioned by Ocean, the loan broker, found.

If all the credit, mobile phone contracts and utility bills that a customer has taken out do not appear on their file because of address discrepancies, this may adversely affect their credit score and make it hard for them to borrow money.

Ensuring that your credit file is in order is also vital if you want to protect yourself against identity theft and people falsely taking out loans in your name.

It will also help you to keep track of how your existing debts might affect your ability to borrow more money in the future.

A separate study found that a quarter of Britons have been contacted by people trying to recover outstanding debts, but one in four did not understand who it was that was contacting them, according to the Debt Advisory Centre.

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