New Ridiculous MPG Rules To Be Introduced

Saturday, 20. September 2014

OK got my angry hat on so watch out! If it’s not APR it’s bloody MPG. I’m sick to death of the ridiculous arguments over MPG and I’m even more angry to read this week that the EU is to poke their nose into our affairs, yet again, and legislate on the way MPG figures are calculated.

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They are set to demand that vehicle emission and economy tests be carried out on public roads rather than in laboratories. I thought it was dopey enough when What Car decided to carry out their own tests on cars to establish a more ‘realistic’ MPG but simply ignored this idiocy as a ploy to sell more magazines but it’s now getting ridiculous.

First of all expect your road fund licence cost to increase along with your benefit in kind tax as it will show an increase in CO2 emissions but let me turn to MPG, which is about as accurate a measure as APR and Brake Horsepower. I think we would all agree that the MPG, achieved in a laboratory, under very strict test conditions, will not be achievable under normal driving conditions.

So we are all agreed so far. And MPG can vary as a result of the road conditions, the condition of the car and most important of all the way we drive. Agreed? So with such a mash up of so many factors it is virtually impossible to come up with a definitive MPG. Ask any driver how they drive and they will come up with numerous different descriptions, let’s think of a few, carefully, fast, slowly, safely, quickly, with care, legally, illegally, cautiously, erratically, carelessly, considerately and like a rabid monkey.

The fact is that we all drive differently, not only to each other but also in different road conditions. Some drivers drive more carefully when it is raining or if there is ice about whilst others see these conditions as sent to test their rally driving skills affecting the fuel consumption substantially.

Poor service and maintenance of the car can affect fuel consumption as can worn tyres or incorrectly inflated tyres which can make a difference of up to 15% in fuel consumption. Braking hard, braking late, racing away from traffic lights can all affect fuel consumption, even having a window open, continual use of air conditioning or the fitting of a roof rack can affect the fuel you use as well as carrying passengers and/or a load of unnecessary or even necessary weight in the boot.

Cars are also not manufactured with the same precision as a Swiss watch, the mechanics will vary slightly between identical cars produced on the same day providing different fuel consumption. I think you get the gist, it is absolutely impossible to establish ‘accurate’ real life fuel consumption figures for all the reasons mentioned. So why are we about to spend a fortune trying to fix something that ‘aint broke. At least with the way MPG figures are established at the moment all cars are tested consistently in laboratories.

The figures may not reflect genuine real life conditions but they provide a means to compare different makes and models of cars. So if your car choice is between a Ford Fiesta or a Vauxhall Corsa you will find that the Government controlled average on the Fiesta is 54.3mpg whilst that on the Corsa is 51.4mpg. So whilst you probably won’t achieve either figure when you drive the cars the Fiesta is likely to be a little better than the Corsa. So to change the method now would be a nonsense and a waste of money.

What inspectors found when they checked the way manufacturers established their MPG figures was doors being taped up and tests being carried out on very smooth surfaces. This is where action needed to be taken so that all tests are identical and we certainly don’t need the Europeans poking about and instructing us on how we should do things!

Oh and if it was possible to ‘manipulate’ the figures under controlled conditions in a laboratory I can only imagine the manipulation that will go on when attempting to replicate real life driving conditions. Nonsense, absolute bloody nonsense! By Graham Hill

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White Lines Shown To Be Unnecessary In Centre Of Roads

Friday, 19. September 2014

Now here is something remarkably strange – and we’re not talking about my hair style! It’s white lines on roads! It would seem, following an investigation carried out by Transport for London (TfL) that white lines in the middle of roads cause drivers to drive faster.

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After re-surfacing three separate roads in London they decided not to re-paint the central lines (not just single lines but two parallel lines a couple of feet apart with cross hatch lines a couple of yards apart). As a result they noticed in every case a significant drop in speed. On the northbound Seven Sisters Road the average speed dropped by 2.5mph to 29mph and by 4.1mph on the southbound side to 28mph.

One theory was that no lines led to uncertainty and more caution as it was believed that drivers felt that with the white lines in place no one would encroach on their side of the road. Without lines separating the cars travelling in opposite directions it created more alertness and fear.

They also found that cars slowed down when cars were passing them in the opposite direction which confirmed an earlier survey in 2005. Having said that TfL will not be removing white lines from existing roads nor do they have any plans to not repaint the lines following re-surfacing even though it reduces the maintenance costs of roads. So I don’t know why it was ever bloody reported in the first place.

On the other hand, in the same report it was pointed out that an extra 900 miles of road capacity will be added to the road network over the next 7 years at a cost of £24 billion which is also to include the cost of re-surfacing! That’s good news then eh! Umm, think I’ll get a cup of tea! By Graham Hill

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No Tax Discs After 1st October 2014

Thursday, 18. September 2014

Did you know that as of 1st October 2014 tax discs exist no more? It would seem that half the drivers in the UK are unaware of this fact so let me explain what is happening. But before you get excited it doesn’t mean that you don’t have to tax your car it simply means that you don’t have to display a disc which is expected to save the DVLA £10 million each year in this move to go paperless.

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It also means that as of the 1st October, if you already have a disc, you can take it out of your windscreen, all part of the announcement made by the Government in the Autumn statement. In addition to no longer being required to display a tax disc there is another move over which car traders and dealers may not be so happy.

Cars used to be sold or part exchanged with a bit of tax left on it either giving the buyer some refund to trouser or giving the seller something to negotiate with when selling her pride and joy. In future, as soon as the DVLA are notified that a car has been sold a refund for the balance of unused tax will be sent to the previous owner. As before refunds will only be issued for complete months that are unused whilst the new owner must apply immediately for the tax using the relevant portion of the V5C.

Another, somewhat strange change, given the way that road tax has been coming down as CO2 emissions continue to reduce, is the ability to pay monthly. Paying monthly will increase the annual cost of the licence by 5% but drivers will be able to pay by direct debit to avoid forgetting and receiving a fine. In what I thought was a funny twist, paper tax discs are still being sent out till the end of September but the DVLA ran out of perforated paper so drivers are having to cut them out themselves.

I can just imagine the dog’s dinner that some have ended up with after attacking the disc with a pair of nail scissors or garden shears! So to sum up: You can still pay for your disc at a Post Office, online or monthly and you’ll still get a reminder. You can no longer transfer the tax, it is automatically refunded when the car is sold or scrapped and the DVLA advised. You will be able to check the tax status of any car by going online and typing https://www.gov.uk/check-vehicle-tax then typing in the car registration and make.

In future you won’t see traffic wardens peering through car windows unless they are being nosey or are perverts. In future tax checks will be carried out by police with plate recognition cameras, wardens will have access to the DVLA database and static plate ID cameras will crop up and will enable the authorities to raise instant fines to those drivers whose cars are captured without tax or insurance.

Driver and Vehicle Licensing Agency

Driver and Vehicle Licensing Agency (Photo credit: Wikipedia)

And don’t forget that you need to do nothing other than remove your tax disc on the 1st October and maybe keep hold of to hand down to your grandchildren for posterity. By Graham Hill

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What You Should Do To Prepare For Winter

Wednesday, 17. September 2014

Sadly we are coming to the end of what wasn’t a bad summer other than August that was complete rubbish! Nights are drawing in and whilst we are still enjoying some late sunshine we should be making plans for the winter months ahead.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

Fleet News has provided a few pointers and given us a few things to think about. Inevitably there will be a few days when it will be difficult, if not impossible, to either drive to work or use public transport (bit of wind, snow, leaves on the train line, volcanoes erupting, landslides etc.) so do you have a back up plan that enables you and/or staff to work from home in the case of an emergency?

Don’t forget if you employ staff you are responsible for their health and safety and could leave yourself exposed if you insist they come to work when the authorities or experts have advised against it. With regard to your car, have you considered swapping to winter tyres to reduce tyre wear and increase grip. Many of the national tyre fitters now offer a service whereby they will swap over tyres for you between summer and winter and store your summer tyres till spring.

Fleet News also suggest that you consider 4WD cars but I disagree. I don’t recall one day last winter when a 4WD car would have avoided taking any time off work and I have to say that unless you have taken a 4WD course the chances are that you will be no better off driving a 4WD car than a 2WD car. Oh and a little tip if you are stuck in snow, try letting a little air out of the drive tyres to increase grip or better still buy a set of snow chains and a spade to dig yourself out.

Make sure that your car has been serviced and there is enough anti freeze in your radiator and plenty in your windscreen wash. In fact make up some anti-freeze screen wash and keep it in a bottle in the boot, it is so easy to run out of screen wash on a trip and end up not being able to see out of the windscreen. Give yourself a few minutes to sit in the car with the engine running in order to warm up the heater.

If it is cold or raining and you drive straight off you will find the windscreen heavily misting up before it starts to demist making it impossible to see where you are going. Remember it is an offence to drive a car if you cannot see through the screen due to either dirt or mist. Oh and another tip, get yourself some Marigold rubber gloves and stick them in the boot.

Snow chain at the front wheel. Photographer: D...

Snow chain at the front wheel. Photographer: Devchonka. (Photo credit: Wikipedia)

The best type of gloves to wear when clearing snow or frost off the car or even to wear when fitting snow chains or digging out the snow. They are totally waterproof and surprisingly warm. I’ll add a few more tips into my next newsletter as the countdown to winter continues. There are lots more tips to come so make sure you read them and stay safe! By Graham Hill

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Graham Hill Reviews The New Range Rover Sport

Wednesday, 17. September 2014

As you know my car reviews are legendary due to the fact that the manufacturers stopped sending me cars to test drive many years ago, so I thought ‘sod ‘em’ I’ll say exactly what I think as I don’t have to suck up to them in order to have a car to drive for the weekend.

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Unfortunately, whilst not a big fan of 4WD cars, I have to say that I’m impressed with the soon to be launched Discovery Sport that replaces the somewhat leggy Freelander and brings the Discovery style into the 21st century.

It will come with 7 seats as standard and has adopted some of the latest Range Rover Sport lines, still popular with drug dealers (I’m told), premier division football players (new), 1st division football players (used) and accountants (new). For some strange reason Jaguar Land Rover have decided to fit the new car with an old engine whilst launching at the same time the Jaguar XE with the new Ingenium engine.

I understand that the new engine will find its way into the new car later next year so might be worth waiting. The car will come with 2WD and 4WD powered by the eD4 and SD4 engines via a 9 speed auto or 6 speed manual gearbox. Improved tech spec. and style will no doubt appeal to lovers of 4WD cars although I have to say that the leather seats look like venetian blinds and the headrests on the back 2 seats look dopey.

I wait with interest to see the replacement full sized Discoveries which currently remind me of a hearse! Sorry, I couldn’t help myself! By Graham Hill

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Is New Technology A Potential Breach Of Human Rights?

Tuesday, 16. September 2014

Telematics is a fairly new word that started its life within the terminology used by fleet managers wishing to track drivers of their vans to ensure that drivers were not driving too many hours and using the most economic routes. It normally takes the form of a tracking device that records everything from time spent driving to the routes taken by the driver, fuel consumption and even the driving style of the driver.

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The process was intended to improve driver safety, improve efficiency and ensure that the driver was involved in as few accidents as possible. But these days the same technology has moved into the consumer market with insurance companies prepared to give discounts to drivers who fit telematics type systems to their cars providing greater discounts to those who drive least and most carefully.

But this has led to legal questions about what data is provided and how it is used. Basic tracking information used for health and safety or economic reasons may be all well and good but what about the times when the company vehicle is being used for personal use and if information is fed to your insurer when is the data likely to cross over into an infringement of personal privacy?

Marc Dautlich, head of information law and partner in the technology, media and telecoms team at international law firm Pinsent Masons, believes employers using such technology need to tread very carefully. It is also believed that Insurers and those collecting data on their behalf need to be equally cautious. Legal issues stem from data protection and employment law, as well as article 8 of the European Convention on Human Rights, under which an individual has a right to ‘respect for one’s private and family life, home and correspondence.’

Not only could telematics systems leave drivers vulnerable to the miss-use of data but as cars now have access to the likes of Google, Facebook, Emails and your mobile address book how is the information that may be stored in your car protected? I reported quite recently about the case of a celebrity’s wife selling her car and the new owner finding the previous owners phone list still stored in the car’s memory, including the home and mobile numbers of numerous famous people.

There are many advantages to having telematics fitted to your car, especially when proving a driver’s speed just prior to an accident but this could all fall apart if data is found to be miss-used by employers or insurance companies. Anyone using the data collected must make it clear to the driver what information will be collected, how it will be used and how long it will be kept for. By Graham Hill

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Using Mobile Phones Just Got More Dangerous

Monday, 15. September 2014

You may not have heard the name Marina Usaceva but a court ruling, following an accident in which she was involved, could change your attitude to what you do whilst driving.      Marina was considered responsible for a fatal accident in which the other driver involved died. She had been using a mobile phone but not at the time of the accident.

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Her barrister explained that there was a 6 minute difference between the time it was shown she was using the phone and when she had the accident. Described as ‘clear water’ and provided as mitigating evidence the plea was still ignored by the judge when he sentenced Marina to 6 years imprisonment.

Evidence showed that she had sent and received texts on two phones during the 20 minutes before the accident. In summing up before sentencing Judge Sean Enright said, ‘If you were not sending texts at the time, then you were fiddling with your phone and that is what caused the collision. Mobile phone use whilst driving is a plague on our society,’

This is a clear warning that the courts will consider the use of a mobile phone whilst driving as a contributing factor to an accident, even if not being used at the time of the accident. Labour Peer Lord Ahmed was jailed for 12 weeks after admitting to texting at the time he was involved in a fatal accident on the M1 in 2009. Since then the law has tightened and sentences greatly increased.

At the time the case was ground breaking because the judge didn’t link the texting directly to the accident but described the texting as ‘prolonged, deliberate, repeated and highly dangerous.’ So the warning, as repeated by Lucy Whitaker of legal firm Rothera Dowson, is that courts are now increasingly willing to consider the use of a mobile phone, prior to an accident, as a contributing factor.

As the law stands at the moment if a driver is found to be using a mobile phone whilst driving he will usually receive a fine of £100 and 3 points on his licence. Using a mobile when involved in an accident causing a serious injury or fatality would be considered to be driving without due care and attention with a maximum penalty of 5 years imprisonment along with disqualification and potential fine.

Beyond that, death by dangerous driving carries a maximum jail sentence of 14 years and a minimum disqualification of 2 years, a discretionary re-test and possible fine. Whilst there is still no suggestion that telephones should be switched off whilst driving, if you have an accident, even whilst using a hands free phone, this could still be considered by a judge to be an ‘unnecessary distraction’ and be treated the same as if you had been using a mobile phone without hands free.

As pointed out by Lucy Whitaker, ‘There is no real ‘safe time’ to use a phone, hand held or otherwise, whilst driving.’ Be warned that it is standard practice for police to confiscate mobile phones from drivers at the scene of very serious accidents as part of the information and evidence gathering process. Casually using mobile phones without consideration of the consequences is irresponsible so stop it now.

Driver in a Mitsubishi Galant using a hand hel...

Driver in a Mitsubishi Galant using a hand held mobile phone violating New York State law. (Photo credit: Wikipedia)

In the first 3 months of this year 380 people lost their lives in accidents attributed to the use of a mobile phone, up 13% over the same period in 2013. Campaigners warn that mobile phone use could become a bigger killer in 2015 than drink driving – a sobering thought! By Graham Hill

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Graham Hill’s Advice On Preparing For Credit Part 2

Sunday, 14. September 2014

A few years ago ‘Credit Repair’ services had a neat trick set out to defraud lenders. Having found a pile of adverse information on your credit file, that reduced your credit score and would therefore result in an instant decline from all prime lenders, they would set out to ‘repair’ your abysmal file. The process was simple, they would write to the credit reference agencies and dispute every piece of adverse on the file, whether it was a CCJ, default, arrears etc.
Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

As a result, as the information was being disputed, the credit reference agency would remove the adverse information from your file until the company who had placed the information on your file could respond with proof that what they were saying was correct. They Credit Reference Agency (CRA) would also have the Register of Judgements checked to see if the CCJ’s on the client’s file were genuine.
At the time all of this took over 2 weeks. So in the meantime the client’s credit score would shoot through the roof and he would go on a spending spree or even just apply for a car that he desperately needed but for which he had been declined for credit. That can no longer be done. These days if you are disputing anything that is recorded on your file you will need to contact the person filing the information and they must respond within a short space of time with proof that the information is correct.
If you feel the information is still inaccurate you can take it up with the Information Commissioner’s Office (ICO) and they act as arbitrator. CCJ’s are a matter of public record so it is either there or not. But this leads me to another strong piece of advice regarding CCJ’s – don’t be belligerent. If you have been to court and the judge has found against you don’t think – ‘Damn, he can wait for the money’ then wait till the bailiff is about to call before you pay it off or pay an agreed amount monthly when in fact you could afford to pay it immediately.
Provided you pay the judgement off within 1 month the judgement is removed from the register and should not show on your credit file. However, there are certain things you must do to protect your credit. If you pay the money into the court make sure you receive a satisfaction certificate then check your file to make sure that there is no mention of the CCJ. If the CCJ is recorded on your file apply to all CRA’s to have it removed with a copy of the satisfaction certificate.
If you pay the money direct to the person you owe, make sure that you receive a receipt, advise the court by sending them a copy of the receipt against which they should issue a satisfaction certificate and amend the register. Make sure that if this happens within the month the CCJ is removed from the register and there should be no mention on your credit file, if payment is made after the month is out you should send a receipt, received from the company you paid, to the court who should then issue a satisfaction certificate and note it on the public files.
This should trigger a note appearing on your credit file to say that the debt is satisfied, if it doesn’t show on your credit file, send a copy of the satisfaction certificate, issued by the court, to each of the CRA’s and they will check the register and amend your credit file. The same applies if you pay back the debt monthly, you need to make sure that the CCJ is marked as satisfied once all the money has been paid. The bad news is that the CCJ, even when satisfied, stays on your file for 6 years after the debt has been fully paid.
So even though the CCJ is satisfied, the fact is that you received one in the first place. So here’s the thing, because of the changes in consumer regulations it is important to keep your credit file squeeky clean. So do everything to get this sorted before it gets to court and avoid a CCJ. If you can’t pay a debt speak to the person you owe money to and come to an arrangement, it is easier than dealing with debt collectors. If you can’t come to an arrangement with the person you owe the money to and are contacted by debt collectors, again come to an arrangement rather than risk a CCJ by going to court, chances are you will still end up paying the same per month but by paying the person you owe the money to direct your credit score will not be affected by a CCJ.
Make sure that if a CCJ is issued it shows the correct amount and if satisfied you may still have to ask to have it removed from your file after 6 years of being on there. Another great piece of advice is always put up a Notice of Correction against a CCJ. Explain if it was a trade dispute or any special circumstances that may have caused it to be issued. As I mentioned in part 1 a CCJ affects your credit score and can result in an auto decline when you apply for credit. A notice of correction forces an underwriter to look at the file and see what you have said – it could help your case if you have a valid reason for the CCJ, if it was a trade debt not related to credit or if you are applying to have it set aside.
CCJ’s are an important item on your credit report and need to be managed. There are 1,910 consumer county court judgements issued every day so it’s not a small problem. Moving on, let’s talk about your bank statements before moving to the application in part 3. You will probably only be asked for last 3 months bank statements, the problem is they can be manipulated so you may be asked for a P60 which shows your declared income to the revenue. But that is rare so you need to make sure that your bank statements are as good as they can be.
If you have returned (bounced) items showing on the statement, that is a no no, your application will probably be declined. If you have an overdraft and you exceed it or if you don’t have an overdraft agreed and you go into unauthorised overdraft, don’t apply for finance until the last 3 months are clear. This isn’t deception it’s common sense. Having an overdraft and using it is not a bad thing, it shows that the people who know your account better than any, your bank, has allowed you an overdraft and effectively provided credit.
Years ago a credit repair company would suggest that for a 3 month period you should borrow money from a friend or relation and either drip feed it into your bank account to give the impression of higher earnings and a healthier bank balance, paying them back once your credit was approved. Or pay in a lump sum, borrowed from a friend or relation, prior to running off the 3 months statements (that won’t show as a loan on your credit file), which will show a healthy balance rather than an overdraft. It is a weakness in the way that we underwrite for credit.
In order to prepare make sure that you have last 3 months bank statements available. Most lenders will now accept statements produced on your computer if you use Internet Banking but you must make sure that the printable copies show your account details as well as your name and current address. Also make sure that if you scan and email copies you don’t miss any pages, they will check the numbers and request any missing pages or they may just assume that you have something adverse on the missing page and decline you.
You will also need proofs of address so make sure that you have at least two bills dated within the last 3 months. Scratching around at the last minute after the finance has been agreed for proofs of address may not only hold up delivery but also prevent you from receiving the finance. If you are totally paperless it would be wise to request hard copies of some recent bills if you cannot print them off yourself or you have thrown away bills after paying them.
Most lenders WON’T accept mobile phone bills, even though many consumers no longer have a traditional landline. Gas/Electricity/Water/Sewage/Landline Telephones are usually all OK but must be dated within 3 months. Some may accept a bank statement and a credit card statement, council tax bill and mortgage statement but only if dated within 3 months. You will definitely be asked so make sure that you are prepared. Your driving licence will also be asked for.
The most important thing to do is ensure that the address shown on the licence agrees with the latest address on your finance application. If it doesn’t it will cause many problems and not least of which it is illegal. The maximum fine for not having a current address on your driving licence increased this year from £1,000 to £4,000 with three points added to your penalty points. So before making your application make sure that the licence shows your current address and you have the paper part if you have a new style licence.
If you have lost your licence the lender may accept your passport as proof of ID. Again make sure that it isn’t out of date or they won’t accept it. Oh and one funder insists on having your original driving licence sent to them so make sure that your application doesn’t coincide with a holiday or trip during which you may require your licence to hire a car or as proof of ID. By Graham Hill
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Graham Hill’s Advice On Preparing For Credit Pt1

Friday, 29. August 2014

I recently answered a frequent question in one of my standard mailouts which received a massive response so I am reprinting it on my blog for you to come back to if needed. Part 2 will be a further blog when sent out to my database, here is part 1:

Q. I have never been declined for finance in the past but just been declined this time around, could I have prepared better?
Answer Part 1:
If you didn’t carry out a credit search on yourself then that was the first thing you did wrong. There are 3 credit reference agencies used by lenders,Experian, Equifax and Callcredit. You can access your credit report for free to see what your credit score is and what information is held on you. Experian and Equifax offer a 30 day free trial following which they charge your credit card monthly but for this you receive alerts whenever anyone searches your file or when you or anyone else tries to take out credit in your name.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

Callcredit, the new kid on the block, offers Noodle which gives you free credit reports for life. If you would like daily updates, fraud alerts etc. you can sign up for Callcredit Credit Compass and pay a monthly fee as you do with Experian and Equifax.
There is a limit as to the amount of information stored on you and sadly there is no Government regulation that forces every credit reference agency to store the same information so the information could vary between each report. In my opinion this makes a nonsense of our credit system and means of assessing affordability.
You tend to only find out which CRA the lender uses when you have been declined – by then it’s too late as it is much more difficult to have a decline overturned than to get it right in the first place. One area which causes more delays and declines than others is Voters Roll information. You may decide never to vote, that is your prerogative but you should still make sure that you are on the voter’s roll as this is the link to your address and the credit information stored against you.
If you do not appear on the voters’ roll you stand a good chance of being declined. If you find you are not on it you can enter your details very quickly online these days. Of course not being on the voters’ roll could mean that you are avoiding council tax which would be a good enough reason for a lender to decide you are not worthy to lend to. Oh and make sure that your date of birth is correct on the credit file, this is key to carrying out a search on you.
Having a linked financial relationship to a third party with poor credit could be enough for you to be declined for credit as both of you are assessed and if the other party fails you can be brought down and declined. Even if you have no joint financial arrangements but applied jointly for a credit card or even HP on a fridge that was not eventually taken out the link remains.
You need to correct this by writing to each of the CRA’s and explain you have no financial involvement with the 3rd party. However, this is also weak as you could still be living together and sharing bills but as if by magic your credit has been repaired. Information showing credit agreements fully paid up help you out but keep a credit card, even with no balance on it, after transferring a balance to another card provider will definitely work against you.
Let’s say you have £5,000 on card A which you transfer to card B. If you don’t have card A removed from your file by cancelling the card with the provider you will be seen to have already spent the £5,000 available on the old card when assessing your current commitments even though you have spent non of it. Either remove the card completely or get the limit reduced to its minimum.
County Court Judgements (CCJ’s) from a lender’s point of view are an instant decline, often as the application goes through the auto – underwrite.
The fact is that when information gets passed to the various credit reference agencies mistakes can be made so first of all check to see if there are any CCJ’s on your file that shouldn’t be there. The fact is that CCJ’s need not be the result of an unpaid credit transaction and if that is the case should it even appear on your ‘credit’ file in the first place? Another failing of our hit and miss credit assessment system. A client came to me having been declined for credit on a car.
We checked his credit file and we found a CCJ which the client knew about but didn’t think would affect his credit, which of course it did. He had bought a bespoke suite from a furniture shop but when it arrived it was nothing like the design he ordered. He spends many months a year working abroad so after lodging his complaint with the shop he left for a 2 month trade visit to Africa.
When he returned the shop had sued him for the money unpaid and as a result of non appearance a CCJ was issued which he was seeking to have reversed. I drafted a note to be appended to the CCJ on each credit file explaining the above, this is called a notice of correction (maximum 200 words) and we had the finance cleared. I just mentioned a Notice of Correction, this is very powerful if you find a mistake or you want to make a lender aware of any special circumstances surrounding any issues on the file.
For example a redundancy or illness may have caused some arrears or a default but has since been resolved and all credit is now running smoothly. If you put this into a Notice of Correction it does two things it ensures that anyone checking your file sees the circumstances and it ensures that you application misses auto underwrite and forces an underwriter to review your case, this is the law. If you don’t do this it will cause your credit score to drop below the threshold  that triggers an auto decline and you are left fighting to get the decision overturned.
I’m sure I don’t need to explain the importance of keeping up payments. In the past missing the odd credit card payment and paying the minimum amount was not such an issue but these are now being factored into the credit score – I’m told. So best to pay your credit cards by direct debit and make sure you make the minimum payment and don’t exceed your limit.
The CRA may also hold details of your bank including your current balance and any arranged overdraft facility along with loans and all other credit contracts. There are two things that the CRA’s lie about, firstly they say they only store factual information they don’t provide an opinion regarding the individual’s credit worthiness.
This is stated by all three CRA’s but it simply isn’t true! Each has their own set of calculations that results in a credit score. If this isn’t an opinion I don’t know what is? They even have a gauge that goes from poor to excellent. Will lenders fund you if you are considered poor? And the auto underwriting systems use this information as part of their auto accept or auto decline calculations.
So they are liars, they are virtually underwriting for the lenders. They also explain that they don’t have a black list, they do. By considering you poor or providing a low score you are on a sort of black list. You will also be actually black listed if there is a concern by a lender that you have committed fraud and you have a CIFAS alert on your credit file.
If you see this you need to act immediately as you won’t get credit if  a lender sees it. If you are a tenant will you be refused credit as you don’t own your property? No. Fewer people are buying these days and whilst, in the past, a lender would assume equity in your property if you defaulted on a loan judges these days are very reluctant to throw you and your family out of your home because you have defaulted on a loan.
They could do but it is less likely, so a lender is no more likely to collect a bad debt if you are a home owner than a tenant although they could place a charging order on the property if you default which means they can recover the debt if you ever sell your house. A charging order showing on your credit file won’t help you.
The strange thing is that landlords are not required to lodge their tenancy agreement with the credit reference agencies or report any missed or defaulted payments – which is of course wrong. For the record missed mortgage payments can lose you a lot of points.
If you don’t think that the above won’t apply if you are putting the car through your company, think again.
The lender needs to see how it’s main director(s) run his or her private affairs and of course if you are a current or recently discharged bankrupt or in an IVA. These of course could cause applications to fail. When making an application in the name of a company, you will normally be asked for maybe one or possibly two partners/directors.
It makes sense to see which director is the strongest by way of credit and add his or her name to the application. I have known directors with poor credit resign from the company until after the credit has been approved then join again. Not that I suggest anyone does it but I know it goes on and the lenders seem to do nothing to prevent it. By Graham Hill
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How To Prevent Your Car From Being Broken Into

Tuesday, 5. August 2014

I live just outside Brighton, a newly formed city that I rarely visit during the summer because of the traffic and the inability to park, but I had cause to pop down there last week and ended up parking in Hove Actually and walking back into Brighton. It was a pleasant walk but as I was passing cars parked at the side of the road I started to notice that people had left nickable items on clear display inside the car.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

I saw all sorts from laptops to tablets, mobile phones, sat navs, piles of shopping spread across the back seat and several bags of all sizes, from handbags to sports bags, left on display on the front passenger’s seat or on the back seat. It made me think because I had only just read a report by Mike Waters of Arval who, in my opinion, stated the bloody obvious when he explained what people should do to prevent car thefts.

He was commenting on the number of prestige cars that were being stolen on a regular basis and what measures you should take in order to avoid your car being stolen. Having witnessed what I saw I thought that maybe I should share this nugget as some readers (not you of course) could be dopey enough not to understand the basic rules of protecting your car.

The first rule is of course to leave nothing on display. Anything of value should be left at home and if that isn’t practical lock it in the boot. You may not be too concerned about the loose change left in the centre console for use in car parks but that £2 contributes towards a can of Special Brew to some.

They are 2 quid better off and you are £75 worth of glass insurance excess the worse off.  Mr Waters says, ‘Always lock your vehicle and close the windows and sunroof. I have to say this seems obvious but how often do you or people you see leave their car on a garage forecourt whilst they pay for their fuel with windows open and the car unlocked?

There are thieves who target garage forecourts to either steal cars or their contents. Keep car keys out of sight, never put them down and even at home make sure they cannot be seen from the outside through a window or letter box. It is easier to break into a house and steal the keys than break into the car and have to hotwire it to get it started. Secure your number plates with tamperproof or clutch head screws.

Not sure about that one. False plates with a bit of double sided on the back can be stuck to the old number plate in seconds. Another suggestion that I don’t necessarily agree with, lock your car in a garage and lock both the car and the garage. I have found, and reported in the past, that if you show that your car is parked in a garage overnight when applying for insurance it can be more expensive than parked in the street. It can be easier to steal a car if the thief can carry out the theft whilst the car is in a garage rather than out in the street.

When away from home, try to park in a well lit, open location, or a police approved ‘ParkMark’ car park. I would add – in sight of a CCTV camera. Finally fit a tracking device to your vehicle and have the car registration number etched on all windows. By Graham Hill

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