loan refused

Last post Fri, Jan 14 2011, 6:59 PM by Zeb. 3 replies.
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  •  Fri, Jan 14 2011, 6:59 PM

    Re: loan refused

    Lenders have affordability calculation that they must follow and satisfy before they can issue a loan. If your mum did not fully satisfy the criteria for this then she will get a decline. Thisd will be company policy and I doubt very much if a word from your bank manager (who has little or no authority nowadays) would change anything. A complaint will have no effect as the loan would have been scored according to the lenders loan criteria and the score is automatically calculated. If your mum did not receive enough points on her score for a pass then there is practically nothing she can do about it. She could appeal, but unless you have some income information that wasn't entered on the original application then the result will only come back as the same. The fact that she has been a customer for 40 years is not a good enough excuse to offer an ombudsman if your mum defaulted on the loan and she complained about being issued a loan she couldn't afford.....yes some people would offer this excuse if it saved their own pride.

    The fact that it is only £1 more than the last loan just shows you how much the lending criteria has tightened up in recent years. Previously she qualified and satisfied the criteria for affordability and yet now she doesn't. It may also something to do with her being retired now.

    At the end of the day, it is a perfect example of how hard it is to qualify for any kind of lending nowadays and she is in the same boat and so many other good credit applicant.

    • Post Points: 5
  •  Fri, Jan 14 2011, 5:22 PM

    Re: loan refused

    hello it was a original 5k loan ( i think) afew years back, which 3/4 is paid off now, so she wants to increase the exsisting loan by £1500.

    Think shes going back to the bank to have a chat to the manager about it, as shes under the same circumstances as she was when she had the original loan.

    Thankyou for the responce

    • Post Points: 5
  •  Fri, Jan 14 2011, 5:14 PM

    Re: loan refused


    The costs per month would have been £1 more only yet it was still turned down.

    I assume what your mum wanted was to borrow a new sum, pay off the orignal loan and have £1500 left. Is that right?

    In general refusals on affordability are not grounds for complaint but perhaps the issue is whether the call centre undertsood what was wanted. Its seems very provocative of the bank to refuse for £1 unless your mum's funding position is significantly different now than when the original loan was granted.

    I would say discuss the concerns with the branch manager and use the experience to decide how much 40 years of custom is worth. Although banks are much of a muchness, there is usually a switching deal to consider.

    • Post Points: 20
  •  Fri, Jan 14 2011, 4:38 PM

    loan refused

    Hello all

    Just wondering if there is any point in complaining about something thats happened to my mum today.

    She curently has a loan for 5k, about 3/4 way through it all being paid back for nicly, never late. Shes a home owner and retired.

    Anyway today she went in to see if she could have £1500 extra on it. Anyway the previous day she called the bank up (call centre) been a customer for 40 plus years and was turned down for it. So went in the branch today and asked why and she was turned down and cant apply for another for 6 months as the call centre has blocked it doubting her abaility to pay it back. The costs per month would have been £1 more only yet it was still turned down.

    Is there any point it talking this over with the branch manager or making an official complain?

    Best Regards

    • Post Points: 35