Which? research finds 32% of credit report checkers found a mistake

Nearly one in three people (32%) who checked their credit report in the past five years found a mistake, according to Which? research published on 3 October 2024¹. The findings come from a nationally representative Which? survey of 4,193 members of the public carried out in July 2024¹. Which? said it is calling for the credit reporting system to be reformed so it is simpler to find information and easier to amend mistakes¹.

The survey found that only 45% of people had checked their credit score in the last five years, and just 25% had checked their credit report¹. Among those who had checked in the past five years, 9% said they found a record of a non-existent debt, 8% found an incorrect current or previous address, and 7% found information belonging to someone else¹.

Which? described two members' cases. Neil Foley found a debt reported by British Gas that he did not owe; between May and July 2024 he spoke to British Gas customer service by phone on seven occasions without resolution, and had a credit card application rejected in the meantime¹. After Which? intervened, British Gas resolved the issue and sent Neil a goodwill payment for the inconvenience¹. Another member, Peter, was rejected for a credit card in April 2022 and found a defaulted account he had never had with O2, under an unfamiliar address, on his Equifax report¹. In October 2023 he went to the Financial Ombudsman Service; O2 then accepted its mistakes and offered him £300 as compensation¹. In March 2024 his credit card provider wrote to say it was increasing his interest rate due to changed circumstances, after the erroneous entry was uploaded again¹. Which? intervened and O2 removed the default and false address, sending him another £300 in compensation¹.

Which? also reported that 65% of those surveyed did not know there is more than one version of a credit report and score, because the three main credit reference agencies, Equifax, Experian and TransUnion, each collect their own data¹. Of respondents who said they had checked their score or report, 70% did so with only one provider¹. Most lenders rely on information from one agency but do not tell consumers which one they use, according to Which?¹.

The Financial Conduct Authority set up a consultation on making the sector more transparent, inclusive and accessible, and Which? said it pushed for a free single portal allowing consumers to access every credit report at once and easily correct mistakes¹. The FCA set up a working group to take the consultation forward and make recommendations for reform to the FCA¹.

Why it matters for households

A mistake on a credit report can affect what happens when someone applies for credit. Which? reported that debts and defaulted accounts are detrimental to how creditworthy lenders consider a person, so applicants could face rejected applications or higher interest rates¹. In Peter's case, a defaulted account he had never held was linked to a rejected credit card application in April 2022 and, later, an interest rate increase on an existing card in March 2024¹.

The survey figures suggest most adults have not recently checked their file: 45% had checked their score and 25% their report in the past five years¹. Because each of the three main agencies holds its own data, a report checked with one agency may differ from another, and a lender may use an agency the consumer has not checked¹. Which? said 70% of those who had checked did so with only one provider¹.

Consumers can check their statutory credit report for free, though Which? described the process as not always straightforward, with different identity and address requirements at each agency¹. A free Notice of Correction can be raised with a credit reference agency, which will investigate and either remove the information or refuse¹. Which? also noted that having a credit application refused will bring down a credit score¹.

What happens next

The FCA working group is to make recommendations for reform to the FCA¹. Which? said it wants the regulator to take forward recommendations that increase consumer understanding and trust in the system¹. No date has been reported for when the working group will report or when the FCA will respond.