Borrowers could be denied credit for not taking on debt since 2000

According to an article in The Times, `the details of millions of mortgages, bank accounts and credit cards that were opened or taken on before 2000 do not appear on credit reports`, which could affect the ability of thousands of borrowers to obtain credit.

It is thought that there are between 40 and 50 million `active financial accounts` of all types, including credit cards and mortgage debts, that have been classed as `missing` - because they don`t appear on credit files about borrowers kept by credit reference agencies (CRAs).

Under the Data Protection Act, it is illegal for a bank or building society to share details about customers without asking their permission first - and because the terms and conditions of the `missing` accounts did not include this consent, many people looking to take on debt (a mortgage, personal loan or credit card, for example) have found it difficult to do so, particularly in the current economic climate.

Neil Munroe, External Affairs Director of credit reference agency Equifax, said: "A lack of information on your credit file will affect a lender`s decision. The more positive data you have on your file, the better the interest rate will be that you are offered or the more likely you are to be offered the deal. However, it depends on the lender as to whether your positive data is shared."

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