Old debts resurface to haunt in new CCR

You really should get a copy of your Central Credit Register report. 

The Central Credit Register is the new credit reporting repository that carries a lot of consumer credit information, like who you borrow money from, how much you borrowed and how well you make your monthly repayments. It has been up and running for the last year or so. A counter to the long-established Irish Credit Bureau, the CCR carries a lot of the same information as the ICB. However, it was established under the insistence of the Irish economic bailout troika which insisted on a credit reporting facility that was independent of the the creditors that owned the ICB. 

In recent weeks, some really interesting goings-on at the CCR are making for interesting reading, and they are having a big impact on some consumers.

In one case, a borrower that had an outstanding debt withtheir creditor for over €15,000 was in a payment arrangement since they had runinto financial difficulty in 2012. They have been making monthly payments thatsuited their financial capacity. But here is the catch; that loan no longerappeared on their ICB. So, had they applied for credit where only the ICB wasconsulted for the mandatory credit check, the debt would not have shown.

On the CCR, it did.

And surfacing as it does on the CCR leads to a lot more questions, especially in respect to the original terms of repayment and the events that necessitated a ‘reworked’ arrangement that no longer appeared on the ICB. It means that some people that may have been heartened by a clear ICB report may be unaware that their CCR can include old loans that may, or may not be in a payment plan.

So, while the original purpose of the CCR was to capture all debts going forward (in excess of €500), it is clear that it is also raising old debts from the dead. Some creditors that were either not reporting the old debt at all of the ICB or in more cases, the actual monthly repayment history, when it comes to the ICB, it really is capturing everything.  

For anyone that is considering applying for credit, it is advisable to check their CCR first. They can get one free copy per year. More information is available at www.centralcreditregister.ie. Coincidentally, the CCR does not currently accept PCP payment details. So, for those members of the public that have a good track record of paying their PCP payment, this does not get factored against their credit history.

If they wish to also check out what the ICB says about their credit management skills, they can do so by visiting the Irish Credit Bureau at www.icb.ie.

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