One of the UK’s biggest credit reference agencies has said that more and more borrowers are turning toward agencies to act as intermediaries in disputes between customers and lenders.

With the number of rejections for credit soaring, borrowers are turning to credit agencies to solve problems with credit history details.

Borrowers approach credit reference agencies often after they have been rejected by lenders and ask the agencies to plead their case for a loan with the lender. If an agency does approach a lender on behalf of the borrower than the lender has 28 days to respond to a query. However if the lender does not respond in the given time the agency will take the borrower’s side.

In the UK, credit reference agencies such as Equifax are not viewed as agents of the credit industry and are therefore more likely to help a customer if there is a disagreement. While credit reference agencies cannot compel a lender to lend money to a customer they can influence a borrower’s chance of getting a personal loan.

If a part of a credit history is adversely affecting a borrower’s chances of getting a loan then the agency can place a notice of correction on their file explaining the situation to prospective lenders.

Since credit agencies in the US are seen as snitches to the credit industry many borrowers have now taken action against these agencies in the courts. However, here in the UK the agencies cannot be sued as they are only used for information and do not actually own the data.