BEEN DECLINED - Appeal Letter Template

never-in-doubt
never-in-doubt Posts: 20,613 Forumite
edited 8 April 2009 at 3:56AM in Credit cards
This thread has been created to offer a standard template, used to appeal a negative decision by a lender; for example a credit card decline letter.

It doesn't matter if you have a default or several searches, for the sake of a little 'tweaking' and cut/paste you could be pleasently surprised when the lender actually considers your appeal in a favourable manner.

The different sections need to be added together to get the finished letter, as shown in post #2.

:o 2010 - year of the troll :o

Niddy - Over & Out :wave:
«13456719

Comments

  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 8 April 2009 at 3:36AM
    The main sections of the appeal letter are as follows:

    Section 1 - Main body of letter

    Section 2 - Financial details / current liabilities

    Section 3 - Address Details

    Section 4 - Previous Address

    Section 5 - Adverse Data on Credit File
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 8 April 2009 at 3:51AM
    Section 1 - Main Body of Letter
    This is the main part of the letter, to be used in all cases. Simply add the relevant sections as they suit your needs.


    Dear Sirs,

    Application Reference:

    I write with reference to my recent application for a credit based facility provided by you, and your subsequent refusal of the facility. Whilst I appreciate I may not have met your specific criteria for the product itself, I would like to appeal your decision because I feel I have underlying facts that may make you reconsider.

    Add Section 2 Text

    Add Section 3 Text

    Add Section 4 Text

    Add Section 5 Text

    I trust my appeal will be looked at more favourably than my original application and remember, I’m only a phone call away should you require anything clarifying or require sight of additional documentation; which will assist in you reversing the original decision and allow me the facility applied for, or an alternative as you may see fit.

    I’d be more than happy to close an existing account down to lower my liabilities but personally I think my situation is extremely good, all things considered, and I do lead a very comfortable lifestyle as you can see from my bank statements.

    Please spend a few moments looking at the additional information attached with my appeal. In the meantime, I look forward to your response, hopefully with better news than last time, and to a future working relationship as my main credit card provider. If, in the meantime you require any additional info please get back to me.


    Yours faithfully,





    Sign Digitally
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 8 April 2009 at 3:33AM
    In this section you list your current liabilities (borrowing) and explain yourself so they get an understanding of your credit-worthiness;


    Example;
    I currently bank with XX Bank and have a £XX overdraft facility which is hardly ever used, as can be confirmed by my bank statements. I regularly utilise their direct banking facilities such as Direct Debits and Standing Orders. I also regularly use their Bill Payment service to transfer ad-hoc payments into my credit card account. I have banked with XX Bank for the last XX years and to date have never had any returned items or ‘unauthorised’ charges posted against my account. I also have a secondary bank account, with XX Bank, which is primarily used as a general spending account and this comes with a £XX overdraft facility which is also, rarely used.

    I also use a Visa/Master Card, issued by XX Bank as my primary credit card, which carries an account limit of £XXX, a copy of my most recent credit card statement is attached for your perusal. My balance on this account currently sits at £XXX and usually fluctuates between £XXX and £XXX; I generally pay the minimum balance due each month by Direct Debit, as can be confirmed from my bank statements, with additional ad-hoc payments also made, at regular intervals, to help reduce my balance.

    If you have more than one credit card, add the following:
    I do have a couple of additional (sub-prime / mainstream) cards that I am happy to close, upon acceptance with you. I only carry these cards as back-up should I have a financial emergency and am more than happy to carry the two cards that I intend on using regularly and frequently.
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 8 April 2009 at 6:06AM
    In this section list your address details and again, explain yourself so they get an understanding of your credit-worthiness. For instance you will fall into one of the following categories;

    1. Home Owner
    2. Private Renting
    3. Living with Parents

    Therefore add the following dependant upon your specific situation:


    1. If you have a mortgage; use the following:
    I have lived at my address for XX years which clearly show I am a responsible adult, with a Mortgage who regularly makes the contractual payment to my Mortgage Account each month. My current Mortgage balance is approx £XXX and my contractual monthly payment amount is £XXX. The Mortgage is taken via Direct Debit each month and I have never missed a payment to date. Full details can be referred by using the Acorn Demographic Classification System, should you feel it necessary to apportion risk to postcode.

    2. If you rent; use the following:
    I have lived at my address for XX years which clearly show I am a responsible adult. Although I do not have a mortgage, this is personal preference and my willingness to continue renting throughout such an uncertain period of depression. I regularly make the contractual payment to my Rent Account each month; this is by way of Direct Debit/Cash/Cheque/Other. My current rent payment is £XXX. I have never missed a payment to date, which my landlord can corroborate if necessary.

    3. If you’re living with parents; use the following:
    I have lived at my address for XX years, which is my parents address. As you are no doubt aware, living with parents is a secure guarantee as I am not likely to suddenly move out and my outgoings are much smaller each month. I do, however have my own banking facilities and run my existing accounts perfectly well, as can be corroborated with my bank statements.
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 8 April 2009 at 6:10AM
    In this section list your previous address details and again, explain yourself so they get an understanding of your stability; (only add this section if you've lived at your current address for less than 3 years)


    Example;
    I have lived at my current address since [Month] [Year], prior to that I lived at 1 Any Street, Anytown, AN11 1AA. This can be confirmed by a simple check of the Electoral Register however any additional correspondence you may deem necessary can be provided upon request. My reason for moving was [enter a brief reason] such as ‘for a better job’ or ‘to be close to my parents’ or similar.
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 8 April 2009 at 6:09AM
    If you have received a decline due to adverse data on your credit file, the following should apply but it is totally reliant on your specific circumstances;


    Example;
    I note that your reason for declination was due to the fact my credit report contained adverse information obtained from Experian/Equifax; my explanation to this is outlined for you to re-assess manually.

    Then you go on to give them some spiel about the data they can see, for instance ‘I have had a lot of searches because I was looking to transfer my credit card balance and made some applications which I’ve since learned was not the wisest decision' or something to that effect. Then explain 'The accounts that were offered were immediately closed down'. This is the type of ‘acceptable’ excuse most lenders can accept.

    If there is an incorrect CCJ or even an old Default Notice, take time to explain yourself - for instance; I was young and carefree back then and made mistakes. Now I have a steady job, earn good money and have responsibilities.

    If you have a string of missed payments, unauthorised charges or even defaults then it’s really pointless appealing because in all honesty they will just decline you outright.
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 8 April 2009 at 3:49AM
    Final draft version of your appeal may look something like this;

    Dear Sirs,
    Application Reference: XXXXX/001
    I write with reference to my recent application for a credit based facility provided by you, and your subsequent refusal of the facility. Whilst I appreciate I may not have met your specific criteria for the product itself, I would like to appeal your decision because I feel I have underlying facts that may make you reconsider.

    I currently bank with XX Bank and have a £XX overdraft facility which is hardly ever used, as can be confirmed by my bank statements. I regularly utilise their direct banking facilities such as Direct Debits and Standing Orders. I also regularly use their Bill Payment service to transfer ad-hoc payments into my credit card account. I have banked with XX Bank for the last XX years and to date have never had any returned items or ‘unauthorised’ charges posted against my account. I also have a secondary bank account, with XX Bank, which is primarily used as a general spending account and this comes with a £XX overdraft facility which is also, rarely used.

    I also use a Visa/Master Card, issued by XX Bank as my primary credit card, which carries an account limit of £XXX, a copy of my most recent credit card statement is attached for your perusal. My balance on this account currently sits at £XXX and usually fluctuates between £XXX and £XXX; I generally pay the minimum balance due each month by Direct Debit, as can be confirmed from my bank statements, with additional ad-hoc payments also made, at regular intervals, to help reduce my balance.

    I do have a couple of additional (sub-prime / mainstream) cards that I am happy to close, upon acceptance with you. I only carry these cards as back-up should I have a financial emergency and am more than happy to carry the two cards that I intend on using regularly and frequently.


    I have lived at my address for XX years which clearly show I am a responsible adult, with a Mortgage who regularly makes the contractual payment to my Mortgage Account each month. My current mortgage balance is approx £XXX and my contractual monthly payment amount is £XXX. The Mortgage is taken via Direct Debit each month and I have never missed a payment to date. Full details can be referred by using the Acorn Demographic Classification System, should you feel it necessary to apportion risk to postcode.

    I have lived at my current address since [Month] [Year], prior to that I lived at 1 Any Street, Anytown, AN11 1AA. This can be confirmed by a simple check of the Electoral Register however any additional correspondence you may deem necessary can be provided upon request. My reason for moving was [enter a brief reason] such as ‘for a better job’ or ‘to be close to my parents’ or similar.

    I note that your reason for declination was due to the fact my credit report contained adverse information obtained from Experian/Equifax; to clarify, I have had a lot of searches because I was looking to transfer my credit card balance and made some applications which I’ve since learned was not the wisest decision. The accounts that were offered were immediately closed down.

    I trust my appeal will be looked at more favourably than my original application and remember, I’m only a phone call away should you require anything clarifying or require sight of additional documentation; which will assist in you reversing the original decision and allow me the facility applied for, or an alternative as you may see fit.
    I’d be more than happy to close an existing account down to lower my liabilities but personally I think my situation is extremely good, all things considered, and I do lead a very comfortable lifestyle as you can see from my bank statements.
    Please spend a few moments looking at the additional information attached with my appeal. In the meantime, I look forward to your response, hopefully with better news than last time, and to a future working relationship as my main credit card provider. If, in the meantime you require any additional info please get back to me.

    Yours faithfully,




    Sign Digitally
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 8 April 2009 at 3:50AM
    It’s also good practice to send off the following documents, whether or not they ask for them – the more info you send goes to show the lender you have nothing to hide and this helps them progress your application once a decision has been reached;

    Add a bit at the end something like this (add/delete bits as necessary):



    I’ve attached the following supporting documents with this letter;
    • Copy of your decline letter
    • Personal I.D – Current Address:
      - Utility Bill
    • Personal I.D – Personal:
      - Copy of my passport
    • Financial Background I.D:
      - Last 3 payslips
      - Last 3 Bank Statements
      - Last 3 Credit Card Statements
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • staffie1
    staffie1 Posts: 1,963
    First Post Photogenic First Anniversary
    Forumite

    If there is an incorrect CCJ or even an old Default Notice, take time to explain yourself - for instance; I was young and carefree back then and made mistakes. Now I have a steady job, earn good money and have responsibilities.

    That bit made me smile - probably will the bank, too. All they're interested in is assessing the risk of whether the proposed cardholder will pay back the money they borrow - and they base that on real historical data about you, rather than some 'sob story' - whether it's true or not.

    In any case, I'm not sure I would be in the slightest way inclined to appeal to a bank to help me get into debt...
    If you will the end, you must will the means.
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    Hope the above helps, if you need any bits amending just let me know....
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.2K Banking & Borrowing
  • 249.8K Reduce Debt & Boost Income
  • 449.3K Spending & Discounts
  • 234.4K Work, Benefits & Business
  • 606.7K Mortgages, Homes & Bills
  • 172.7K Life & Family
  • 247.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards