So if this becomes a bank will it exclude those with bad credit like other banks or will you understand that people make mistakes and need a new chance? Obviously this query would be for general transaction accounts (not credit loans etc).
3 Likes
Credit checks should be replaced by financial checks, that is, if you can afford the service or product, you should be allowed to use it. Phone, Power, and internet are now deemed essential services, yet people who are low income, or who have bad credit are missing out on better deals, limiting them to prepay only offerings, which could be a degradation of service.
2 Likes
Exactly. And people who have made mistakes in life and incurred debt are still being punished.
1 Like
This is my jam and specialism.
The CCCFA is there intended to protect people from things they can’t afford. But the reality can be very different. (My start up is helping some of this)
There are models overseas around alternative credit assessment criteria.
Re telco etc the credit report this month showed that about 3.5% of people are bringing in their energy bills.
Agreed Re making sure that prepay isn’t a lesser service or more expensive. There was an enquire in to this to make sure people aren’t prejudiced also.
I’ve never understood why you need a credit check to open a basic transaction account. Definitely understand credit such as loans etc but a basic transaction account where the person can only spend what’s in the account…
1 Like
Yeah, existing processes at banks are painful. I agree. The credit check isn’t really needed until you need to borrow but their processes are box like and inflexible.
The credit report is also used to see what accounts you hold elsewhere, especially if the product you’re applying for has a condition that you move all you banking to them (but again this would normally only be a condition of lending).
Im one of the people this effects & some of the bad credit was from when i was in bad situations. I will never pay it off as im now regarded as disabled & live on a benefit, so im looking at going bankrupt so it dissappears. I would love to be able to have money go into an account to save for a holiday. I would want this to be a savings account but I dont want to be able to touch it easily. I want to be able to withdraw the money when ive saved enough & be able to pay for my trip.
Christians, against poverty helped me get debt free, and have a clear credit history, however, the cost of living crisis is pinching because I’m struggling to keep on top of bills, and to put money aside to save: as I am also on a benefit. We should be able to invest 10% of net, another words, put 10% of each weeks, pay into a savings account, or investment platform, such as hatch or Sharesies .
Would be nice if one of the developers replied to this.