Treasury enquiry into credit searches "long overdue"

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Treasury enquiry into credit searches "long overdue"

Wed 23rd Sep 2009

The enquiry into credit searches by the Treasury Select Committee is "long overdue", according to moneysupermarket.com.

Tim Moss, head of loans and debt at the comparison site, urged the government to rethink the whole way in which credit products are sold in the country,

According to Mr Moss, in the current system, the first bank to look at a person's credit rating is having a negative effect for any future checks.

He claimed that searching for credit should be no different from shopping around for any other product, in that it should not impact consumers' ability to get the most competitive deal.

"Every application they make leaves a footprint on their credit rating which potentially increases the APR on any future credit applications and reduces their chances of being accepted elsewhere," added Mr Moss.

The current credit system was described by him as a barrier to transparency which hinders borrowers.

This month, Barclaycard launched a new service whereby people can check their eligibility for one of the company's credit cards without the process negatively affecting their credit record.

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