Stop Insurance companies ruining credit scores by classing pay monthly as a personal loan!

Stop Insurance companies ruining credit scores by classing pay monthly as a personal loan!

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Alison Norrington started this petition to Financial Conduct Authority and

Stop insurance companies ruining credit scores by classing paying monthly as a personal loan!

Insurance companies are using finance companies (Premium Credit & Close Brothers to name two) to fund monthly direct debit options for home & car insurance.

These companies are now using “hard credit searches” & adding “personal loans” to people’s credit files! This is happening without consent or proper notification.

For those who don’t know much about credit scoring, opening a new credit account drops your score massively. This in turn means you will pay a higher rate of interest on loans/mortgages/credit cards. If every year at renewal, they “hard search” & add a new loan that’s 2 new loans per year, anyone who pays this way will never get the best financial deals.

We all know that to save money & be financially responsible, we should look for 0% balance transfers, remortgage after deals expire etc.

These companies are discriminating against those who can’t pay insurance annually, exactly the people likely to need to benefit from good interest rates for other things.

I call upon the financial conduct authority & government to stop these companies from ruining lives & causing financial hardship.

In a day & age where mortgage “agreement in principle”, loans & credit cards are given on the basis of a “soft search” I’m very sure that’s all that’s necessary for car & home insurance. 

Home & car insurance are absolute necessities, just because someone can’t afford to pay them annually should not result in them being disadvantaged in the financial market by having “loans” on their credit file for them.

Obviously, missed payments/defaults should be recorded. Could there be a new classification of “insurances” added to all credit reference agencies where paying monthly for it only affects credit scores if payments are missed?

If a “hard search” is going to be done, it needs to be law that direct & specific consent is required (not just buried somewhere in paragraph 54 of a renewal letter). People should also be very clearly informed that if you choose to pay monthly it will result in a “loan” added to your credit file & the damage this will cause & further consent must be obtained.

I only hope the immoral & discriminatory actions of these companies doesn’t result in people not having home/car insurance & people so financially disadvantaged by it that they lose their home/life.

We need action against these companies, now! The economic situation for many right now is difficult, people need to be able to get the best deals for their finances, no-one should be disadvantaged because they have home & car insurance!!

Please check you credit files - Clearscore, Credit Karma, Totally Money are all free!!

Please sign & share to end this practice of creating financial inequality!

 

 

 

 

 

 

 

0 have signed. Let’s get to 100!
At 100 signatures, this petition is more likely to be featured in recommendations!