News12 mins ago
Liable for lodger's debts/bad credit?
6 Answers
Hi all,
I have a little query I could REALLY do with the answer to... I have a lodger in my home, who's a really nice and to-date honest guy, but he's just set up his own web development business and now has all of his business correspondence sent to my home address. All of the mail that arrives has his business trading name on it, including banking correspondence, and so my worry now is that were his business to rack up debts my address could be credit blacklisted. Would this be the case? I've worked hard over the years to establish a good credit rating and I'd be very upset if it were to suffer through the actions of another.
Many thanks in advance,
Don
I have a little query I could REALLY do with the answer to... I have a lodger in my home, who's a really nice and to-date honest guy, but he's just set up his own web development business and now has all of his business correspondence sent to my home address. All of the mail that arrives has his business trading name on it, including banking correspondence, and so my worry now is that were his business to rack up debts my address could be credit blacklisted. Would this be the case? I've worked hard over the years to establish a good credit rating and I'd be very upset if it were to suffer through the actions of another.
Many thanks in advance,
Don
Answers
1 to 6 of 6
No....credit rating is based on the person not the property.
19:40 Thu 04th Aug 2011
Credit rating agencies are barred from blacklisting addresses. They can only blacklist individuals. However they can block credit for one person at an address if another person, at the same address has a poor credit rating AND they believe that there is a 'financial association' between the two people.
So, for example, they could refuse credit to resident 'B', on the basis of resident 'A's poor credit history, if they believed that the two people were living together as sexual partners.
If a mistake occurs (or is likely to occur), a 'notice of disassociation' can be filed with each of the credit reference agencies. (In practice, it's probably only necessary to file a notice with one of the agencies, as they usually share such information). Once such a notice has been filed, the agencies are barred from linking the finances of the two people (unless they've got good grounds for believing that the notice was submitted fraudulently). The UK's main agencies are Experian, Equifax and CallCredit.
Chris
So, for example, they could refuse credit to resident 'B', on the basis of resident 'A's poor credit history, if they believed that the two people were living together as sexual partners.
If a mistake occurs (or is likely to occur), a 'notice of disassociation' can be filed with each of the credit reference agencies. (In practice, it's probably only necessary to file a notice with one of the agencies, as they usually share such information). Once such a notice has been filed, the agencies are barred from linking the finances of the two people (unless they've got good grounds for believing that the notice was submitted fraudulently). The UK's main agencies are Experian, Equifax and CallCredit.
Chris
That's great. Thanks so much for all of your advice! I'd heard stories in the past about people struggling for credit because of a black mark against their property but it's a relief to now know that this doesn't happen any more. Once again, many thanks for all of your answers; my fears have been alleviated!
Don
Don
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