This is a subject I’ve covered quite a few times, but this one was very puzzling. Camelot has a £5K bond from Satnam Rukar, who runs a One Stop in Sutton Coldfield. He has been a limited company “for ages”, he says.
His credit score is 88 out of 100. I asked if someone from Camelot would get in touch with him to advise him how to improve it. One Stop itself said it was puzzling why Camelot felt that Satnam was a risk.
Some advice was forthcoming from credit rating company Experian and Satnam cleared up a few discrepancies. Experian said he owed money to four people. “But this was not money owed,” says Satnam, “it was the amount of days’ credit taken to pay suppliers and in my kind of business it was usually 28 days, so that was really good.”
The credit Experian was looking for was £3,500. “And mine is £3,400,” he adds.
Camelot advised him to wait and ask for another credit check.
He then got a call from Camelot saying when they credit checked his company they got the same result as Satnam did, but when they added his name as a director they got a different result, saying the credit limit was £1,300.
“But they had no reasons why,” he says. “I’ve checked my personal credit on clear score and it says above average. I’ve had the lottery for more than two years. I have paid all my bills on time and far as I’m aware don’t owe any money. So why now, as they must have checked with me as director two years previously?”
I went back to Camelot and a spokesman said: “I’ve been in touch with our credit control team and they have said that our credit reports include information on the directors of a limited company, whereas the retailer’s report did not (it was a personal credit report). This explains the apparent discrepancy between the two reports - as one is a business credit check and one is a personal credit check. That said, it’s also worth bearing in mind that it is possible for a director’s personal report to be categorised as above average and still fall short of the level we require to pay a bond.”
Trouble is, we don’t know what that level is. Satnam sounds like a good bet to me.