Banks discriminating against the disabled!

d.chatten

Hi all,

I am permanently disabled and i receive DLA (Disability Living Allowance), ICA (Invalid Care Allowance) and Income Support, i have recently been trying to get a loan from two different banks.

The first bank is HSBC which i also have a current account with, also a credit card, debit card and a cheque book, i have been refused a loan for reasons unknown, my credit report from experian is fine, no defaults on any payments and no bad debt at all, even experian say they can't understand why i'm being refused as my credit report is fine, could this be discrimination against the disabled? if so what an i do about it?

The second bank was the Halifax which i have a credit card with, when i applied for a loan i was told that they don't accept DLA, ICA or Income Support as a form of income, the thing is, this is the only form of income that i receive, also, my credit report is as above (fine), again, could this be discrimination against the disabled? if so what an i do about it?

Thanks!

Comyface

The income the government provides you with is to live off, not to borrow money against really. I don't think it's discrimination tbh.

theartfullodger

OP doesn't state what he wants loan for.

If, for example, he wanted money to assist with his disability (and I have huge sympathy with anyone disabled..) - eg equipment, house alterations, and there is no alternative funding (i.e. no grant, no government organisation wishing to help) then I think the Banks should help him.

Good luck d.chatten. Hey, there's a "Clan Chattan" - Clan of the Cats -in bonnie Scotland: Any association?

Cheers!

Artful

Comyface

Yes, that's true. We don't know what the money is required for. Please don't take the brief-ness of my reply as unsympathetic.

But we know what the banks are like. They don't want to help us imo.

jennytiger

If you was wanting a loan for house alterations, building work is VAT exempt if your disabled.

If it is your only income i think it should act as a good security as it is a steady income unlike a job inclome which is not safe especially in todays climate.

p00hsticks

You donlt say how much your income is and how much you are looking to borrow, but I'd suspect that the most likely reason for being refused is that the banks don't think you'll be able to afford to make the repayments on the loan. As comyface says, state benefits are generally set at a level that provide just enough to live on, not to make loan repayments from.

Time2Go_25

I don't imagine it is going to be discrimination, if so we'd be in for a hell of a lot of lawsuits. For example:

I'm black and the bank turned me down for a loan

I'm a woman and the bank turned me down for a loan.

etc

kaya

we have an immaculate credit history, lots of equity and were refused an amex card recently, no reason given

d.chatten

Thanks for the input guys, i do remember when i applied for a Halifax credit card i was refused at first untill i asked the reason why and that i hoped that it wasn't due to me being in receipt of DLA and ICA, they then went to talk to someone and came back and all of a sudden i had been accepted, this is why i asked the question.

Extant

Comyface wrote: »

The income the government provides you with is to live off, not to borrow money against really. I don't think it's discrimination tbh.

This is, no doubt, the exact reason why: benefits are for you to live off, not to secure debts on.

They are also not considered to be reliable income: benefits can and do change, as can eligibility, etc. If you are relying on benefits as your sole income, it would be grossly inappropriate to allow you to take out debt on that basis.

Extant

Comyface wrote: »

Yes, that's true. We don't know what the money is required for. Please don't take the brief-ness of my reply as unsympathetic.

But we know what the banks are like. They don't want to help us imo.

Damn if you do, damn if you don't. The public slam banks for lending irresponsibly, but then get emotive in cases such as these and say there's not enough help. They're not lending precisely because it is irresponsible to lend to somebody without a fixed income that lives off benefits.

Imagine HSBC gave him the loan now, under Labour. The general election rolls around next year, and the Tories win. They announce drastic cuts to benefits, and this loan is no longer affordable. Was that responsible lending? No, it was not.