Topic 11 - Checking the Applicant's Credit Status Flashcards
Which information is not revealed by references and statements?
- Pending court hearings
- Purely cash transactions
- Action for maintenance/child support claims
- Borrowings yet to be drawn down
A credit record shows records of defaults for how long?
Six years from the date of the default notice, even if arrears are paid off.
What issues can render a guarantee invalid?
- Lack of capacity to contract
- Undue influence
- Misrepresentation
- Misapprehension
- Mistake
Duress
Payday loans may affect a lender’s attitude towards agreeing to a mortgage. True or False?
True. But they will not always show up in credit searches.
Insolvency:
When a person’s liabilities exceed their assets, or they cannot meet their financial obligations when they fall due.
CCJs:
Listed on the Register of Judgements, Orders and Fines for England and Wales. They stay on the register for 6 years, unless they are paid in full within a month of the judgement.
DROs:
Debt relief orders are intended to help those living in England and Wales who are struggling to pay their debts and who:
- Owe a maximum of £20,000;
- Have total gross assets not exceeding £1,000 plus a car worth less than £1,000;
- Have disposable monthly income of no more than £50
They are unlikely to be in a position to take out a mortgage
Acceptable forms of identification:
- Current passport
- Driving license with photo
- Entry on electoral roll
- Recent utility bill or council tax bill in the customer’s name
- A letter or statement from a person of responsibility may be accepted for those who are financially excluded.
Record-keeping for money-laundering prevention:
Evidence of identification and of transactions must be retained for at least 5 years.
Form J restriction
Filed by a trustee in bankruptcy. It requires the Land Registry to note the trustee’s interest in the property and notify them of any dealings related to it.
