this post was submitted on 20 Jun 2024
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Do any credit reporting agencies in Europe give consumers control over creditors access? (sopuli.xyz)
submitted 4 months ago by freedomPusher@sopuli.xyz to c/europe@feddit.de
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In the US, consumers can freeze their credit worthiness records and receive a code. When the records are frozen, the only orgs that can access the records are those already doing business with the consumer. If a consumer wants to open up a new account, they share the code with the prospective creditor who uses it to see the credit report.

So the question is, how are access controls on credit histories done in various EU nations? Do any use unlock codes like the US, or is it all trust based?

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[–] freedomPusher@sopuli.xyz 1 points 4 months ago* (last edited 4 months ago) (1 children)

So not what their running debt is but only whether they can take on a new, specific one.

I knew the criteria was out of the hands of EU-based lenders, but didn’t realise the data is also out of reach to the lender. I suppose it makes sense that the lender would get no info other than a yes or no, if lenders have no discretion.

I noticed A shop had a rediculously priced phone (like €800+, something I would never buy) but advertised something like €9 if you take a contract. So it’s effectively a loan factored into a locked-in phone service plan. IIUC, the phone shop must arrange that with a bank and does not have the option of taking on risk, and then the bank asks the central bank if customer X can handle that loan, correct?

You can reverse payments through the bank in the EU as well but it’s seldom necessary, since the companies tend to revert the charge willingly when confronted by the consumer protection bureaus.

I’ve only had to resort to bank reverse a couple if times.

One was when I ordered a pair of shoes of what appeared to be an Italian website. It later turned out it was a scam site that listed popular models that were not made anymore and then sent you a ridiculously poorly made knock-off copy from China. I explained the issue to my bank and showed the knockoffs I got and a week or so later the charge was reversed.

That’s quite a surprise. I heard SWIFT/IBAN transfers were permanent and irreversable. I heard of mistakes being corrected but it required the two banks to collude and the bank of the recipient to do a money grab on their account, which I suppose would be impossible if a criminal closes their account. I wonder if your bank took a loss or if they colluded with the other bank. IIRC, banks have a minimum “investigation” fee of like €25 plus an hourly rate to pay bankers to deal with bad transactions. Did your bank offer that service for free?

[–] lemmyvore@feddit.nl 3 points 4 months ago (1 children)

the phone shop must arrange that with a bank and does not have the option of taking on risk

That's correct, any and all loans go through a bank. But please note that the bank won't advise if it's a bad loan, for example a ridiculously overpriced phone and/or phone plan. They just check if you can afford the monthly payment.

I heard SWIFT/IBAN transfers were permanent

These were card payments not transfers. Any payment done with a card, whether online or at a POS machine, can be reversed. And yes it was done for free in both cases.

[–] onion@feddit.de 3 points 4 months ago (1 children)

Debit card payments are typically SEPA direct debit

[–] lemmyvore@feddit.nl 1 points 4 months ago

Direct debit transactions are done by companies not by the customer. They're used for allowing utility companies to pull the monthly bill automatically from the subscriber's account.