Press Release

DEBT DOESN'T LIVE HERE ANYMORE

Equifax dispels the myth that bad debts stay at an address as latest Ministry of Justice figures announces rise in repossession figures

www.equifax.co.uk

London - 3rd June 2008 - "One of the oldest myths about credit information is that it is recorded by address and, therefore, if you share a property with someone with bad debts, or move into a property previously occupied by someone in serious debt that will affect your own credit record. That is simply not the case", confirmed Neil Munroe, External Affairs Director, Equifax, the leading instant online credit information provider.

"With the latest Ministry of Justice figures showing an increase in repossessions, and expectations that numbers will continue to rise this year, this might be something concerning people planning to move or even considering buying a repossession. We are therefore aiming to make sure consumers understand what information is - and isn't - on their credit file - to give them peace of mind, and make sure their credit file is in the best possible condition for them to get new credit when they need it."

With pressure on finances, as well as thousands of homeowners coming to the end of fixed rate mortgage deals, Equifax believes it is crucial that consumers understand what information lenders are looking at, so that when they make new credit applications they are in the best possible position to get a good deal.

Lenders make checks with credit reference agencies to see whether an applicant has kept up to date on repaying their credit. The information held by the credit reference agencies is logged by the individual's name and current and previous addresses and shows any active and old accounts up to six years old, as well as any county court judgments or if they have been declared bankrupt . But this information is only shown for the applicant's name - so if they share with someone who has bad debts, or someone with bad debts had previously lived at their address this will not appear on their credit file and their own credit status will not, therefore, be adversely affected. Nor will information about children or siblings with defaults be shown.

The only exception to this rule is if the applicant has a joint financial agreement with another person - either with the same or a different surname - and they live at the same address. Then the other person's credit information can also be looked at by the lender. This is because the lending industry has determined that having a joint financial agreement is relevant to an individual's own financial behaviour. If the other person has any defaults then they might affect an individual's ability to get new credit.

"Although much has been done to educate consumers on credit information, there is still confusion and this is made worse when people are worried about their own financial status in the current economic downturn", confirmed Neil Munroe. "Our goal is to provide consumers with clarity, so that they are aware of exactly what information will - and won't impact on their ability to obtain credit, to rent a property, gain employment or obtain other financial services."

What is ON Your Credit Report	What is NOT on Your Credit Report
Electoral Roll Information This information is shown on a Credit report to verify a person's name and address that they have provided on an application form.	Credit Accounts Opened Pre-94 Currently this information is not shared by lenders to Credit Reference Agencies. However, it is currently under review by the government and a decision will be made in the near future as to whether to include this information.
Credit Account Information Credit Reference Agencies hold information from lenders about credit accounts. Accounts are classed as 'settled', 'active', 'defaulted', or 'delinquent'. The payment history shown on your file will relate to the period before you repaid your Credit.	Savings Account A credit report does not include information about your savings accounts.
County Court Judgments or Decrees Court judgments or Decrees are held on your Credit report for six years from the date of the judgment. Credit Reference Agencies receive the information from Registry Trust.	Fines Fines information will not appear on a credit report.
Searches This information is shown on your report, where a lender has performed a credit check. These are kept on your Credit report for 1 year.	Student Loans This information is not currently supplied to credit reference agencies
Shared Financial Commitments Only your own Credit history, and that of anyone you specifically share a financial responsibility with, such as a joint bank account, will be provided to a lender.	Third Party Information Your credit file will not include financial information about members of your family who live, or have lived, with you, if you don't share any joint financial commitments.
Current Account Current account information is shown on your report . The only financial information you will see on the report relating to your current account is when you have an overdraft balance	Child Support Agency Maintenance Orders This information will not appear on a Credit report.
Council of Mortgage Lenders Repossession Database This information will be on your Credit file if you have voluntarily given up your home or had it repossessed.	Medical History This information is not included on your Credit report.
CIFAS Protective Register This information will only appear on your credit file if you have registered with the Protective Register. It aims to detect and prevent fraud, in order to protect innocent people whose names, addresses, or other details, are used fraudulently by others in order to get Credit.	Criminal Records This information is not included on your Credit report.
Bankruptcy and IVAs Information about bankruptcy or an IVA will be logged on an individual's credit file and will stay on there for 6 years, even if the bankruptcy is discharged after a year.
Debt Management Programmes/ Payment Arrangements As more consumers find themselves in financial difficulty, they are taking positive steps to manage the situation with their lenders by either coming to informal arrangements to repay debts over a longer period or to manage their debts through a debt management programme. This information will also be shown on an individual's credit file.

For interviews with Neil Munroe or further press information please contact Louise Fowler, Eli Puzey, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 or email: louise@harrisonsadler.com