Declined First Direct

Cals72

Hi,

I was wondering if you could give me some advice.

I have been banking with First Direct for over 7 years and never has any bother with them.

I decided that I was going to change my car and would go directly to the bank for the loan. My original loan was with toyoyta finance for £215 per month and the new car would for £185 per month over the same period (so id be paying less - but that wasnt the motivation for the change).

Anyway, First Direct declined the loan explaining that I had affordability but there was 'something' in my credit file and unfortunately on this occasion they would have to decline my application.

I sent away for my experian and equifax for my credit report. The only thing thats on the report is card which over two years ago I failed to make any payments for six months (stupidly I put the TV licence on an annual direct debit to an old bank account and I had forgotton and because i belived it to be a zero balnce - i didnt open the mail - stupid i know). However in the period since the oversight - First Direct have accepted me for a Gold Credit Card and Loan (both of which now have zero balances).

What should I do - clearly I failed to make the payments to the old bank account and its my fault. However all of existing debts are paid on time and always more that the minimum payment.

To be honest I want to tell First Direct where to go - because I consider myself to be a good customer. However, I am worried that the next search for credit will show that I have been declined credit even it it was unfairly!!!

What should i do? Is there anything I can do?

Any advice much appreciated.

Cals

A_Nice_Englishman

Guessing now, but perhaps FD feel they have already agreed to lend you as much as they feel they want to via the credit card and loan you already have?

Is there any reason why you can't use them?

Cals72

The Loan has now ended and I could have used the credit card. In the end I used my Egg card as they have promotional rate of 4.9%.

However, I am worried about any future searches of my credit record and less about access to money right now. FD themselves said they could see I had affordability but still declined which i think is silly.

I guess my question is should I try and appeal the decision, although i now no longer want the money, to clear my record?

Thanks again.

Cals

Rafter

Cals,

Sounds like a 'computer says no' situation but I can see where first direct are coming from.

There is 'evidence' on your file that you have defaulted on credit in the past. If you were a bank and there was plenty of demand from customers for loans, would you lend to you or to the person who doesn't have the default.

It was a genuine mistake on your part, not a 'real' default in the sense that you had every intention of paying the debt, but computers and your credit file don't see it that way.

Wouldn't switch your banking from first direct in anger though. I suggest you write to them, explaining what happened, the amounts involved and your current income and outgoings.

They might then at least flag your file so you don't get future problems with the credit limit on your card being reduced.

HSBC seem to base most of their decisions on how you operated accounts with them in the past rather than accounts elsewhere from my experience but are now being more cautious.

R.

Robert_Sterling_3

Cals72 wrote: »

"I failed to make any payments for six months"
"I didnt open the mail - stupid i know."
"clearly I failed to make the payments to the old bank account and its my fault."
"To be honest" .... Steady on Cals.
"I consider myself to be a good customer."
"I have been declined credit even it it was unfairly!!!"

To be honest I think you might be being just a teeny bit unfair to the lender?

Cals72

Rafter thanks very much for your advice. I will give your suggestions a bash and see if FD can make a note on my credit record. On reflection I agree switching my account in anger wouldnt do me any favours and might actually make the situation worse!

Robert I asked for advice not a reminder of my faults which I freely listed. I admitted to being at fault - however the important detail was that FD had leant to me on two seperate occasions after my 'mistake'. So it seems to be a bit of a lottery FD lending criteria. So, no I dont think I am being unfair to the lender. However I am pragmatic enough to understand that they may be tightening thier lending practises and unfortunately I am a casualty. Newbie members might be scared off with such a response.

Cals