Help!: PostOffice credit card application process is driving me mad!

nbr

Hi there
I thought I might post a problem that I am facing with the Post Office credit card process, hoping that someone here will help me in sorting out this.

I have applied for a PostOffice credit card online, after a couple of days a received a letter through the post from the PostOffice asking for me to send photocopies of the following:

1) passport
2) last payslip (!)
3) proof of address
4) recent bank statement containing 1 month's worth of transactions

All this had to be firstly "certificate originally sighted".

After sending all this paperwork I have just received a letter saying that my request of credit card has been rejected. I underline that I have lived in the UK for the last 4 yrs, never had credit problems, had in the past a company credit card on my name (so resulting in as personal) the statements of which I always paid. I have recently moved house (in rented accomodation from another rented accomodation) and the new council has not yet sent me a electoral registration form so I still figure as under the electroral register at the previous house.

I then called the PostOffice Financial Services Customer Service and they told me that Experian had the details as to why I was rejected. I then applied to the creditexpert website so that I could see my credit report (consider that I get only a 30days trial period, at the end of which I have to remember to unsubscribe since I do not really care to monitor my credit report). At last I can see my report, which shows nothing more than what I expected, i.e. no credit problems and this thing about the electoral register.

I then called the PostOffice Financial Customer Service again, to ask why in the end I was rejected, and they told me they would not disclose the reason(!?!?). What is more, they suggested to re-apply! But how can I re-apply if I do not know why I was rejected in the first place?!?!? The advisor then suggested I could submit an official complain, with which, though, he thinks the reasons for rejection would not be disclosed anyway.

How can I find out the reason why I was rejected?!?!? Could it be the fact I am still on the old address electoral register? But that is oddly silly since I have received to my new address private and confidential communications from the PostOffice about the rejection + they have tons of proof of address, i.e. points 2), 3) and 4) above!

I really do not see why I can't get a credit card + have my credit score messed up just because of burocracy!

I am really tempted to write a complaint to the PostOffice, but I fear I won't be able to get to the root cause of the rejection + have a credit card with them.

Any suggestion of action?

Many thanks!

never-in-doubt

First point to consider when speaking credit: A lender does not have to give a reason when declining an application.

They do, however, have to give you one of 3 causes;

1. Credit Score
2. Credit Reference Agency
3. Fraud/Adverse Data

Basically, by the sounds of it you failed their credit score. Also, they referred you to Experian (Bank of Ireland than run PO card use Experian) as they have flagged you're not on electoral register which is a must in order to get a mainstream card such as the PO. The PO card is what you apply for if you have immaculate credit which, i'm sorry to say, you do not because you are not registered oin the electoral register and until you are you will not get accepted for many mainstream cards.

You mentioned your file looks fine, it is - but without electoral register data you may as well be invisible and this is probably the sole reason.

It is nothing personal, nor is it beurotic - it is simply the way credit works and the first principle to any lender is stability and not being on electoral register means they have no way of knowing you are really who you say you are.

I'd try appealling, just send a letter off to the card underwriting team and express you are unhappy but wish to appeal. Send a copy of your credit report, a few bank statements and any credit card statements you have.

If you have anything that proves your old address like council tax bills/mortgage statement/bank statements then send a copy off as well.

The more info you give the better your chances but don't hold your breath, you need to get on the electoral register and quick smart!

nbr

Just an update on this. I have written to the PostOffice, not really to re-apply but to ask them the main reason why I was rejected, at least to get a response along the lines of either 1), 2) or 3 as never-in-doubt suggested.
Received a letter back from the PostOffice saying they cannot say anything about the reason why I was rejected because, I quote, "our internal credit policy is commercially sensitive and, due to the sensitivity of this information, we are unable to provide you with a specific reason at this time" , as if at another time they would!?!

I had already decided I would forget the PostOffice CC at this time, but before applying for a more serious CC company I would like to get to the bottom of this, especially given what is written here on the Experian FAQs website, i.e. that the PostOffice should give me a clear explanation about their decisions and it is advisable that I found out the reason of rejection before contacting other CC companies.

I am quite sure it could be due to the electoral register, and I contacted my local Council to get added as never-in-doubt suggested, but I just wanted the certainty to avoid extra problems.

Do you think it is worth contacting the Financial Ombudsman Service to get to the bottom of this? I was planning to give them a call before submitting the actual form, just to understand whether we are likely to get anywhere.

Thanks again for your advice!

never-in-doubt

No,

Re-read the initial letter that the PO sent you, it will say something like....

'we are sorry but you do not meet our minimum requirement' or maybe 'due to adverse data received from one of the three agencies' or even 'due to data received from one or more of the three credit agencies'

It has to mention one of these reasons, they always do. It is law that they must give one underlying reason and they will have, maybe you misread it.

If on the decline letter it does not mention credit agencies then you can be sure it is due to internal scoring, i.e. you never met their minimum credit requirements (failed their score)

Have another read of original decline letter....

However, PO will not give you an account if you're not showing on E/R - its is a prime card and has high scoring.....

YorkshireBoy

nbr wrote: »

Do you think it is worth contacting the Financial Ombudsman Service to get to the bottom of this?

No. What the letter says (in a roundabout way) is that you simply failed their credit scoring policy. They were unsure (hence the request for further information), and have now decided, after viewing the additional information sent, that they are not prepared to extend you credit.

My advice? Move on (and good luck with your next application).

never-in-doubt

Addition - did you send a copy of your credit report to PO with an appeal letter?

Thats what I suggested in last post, when they have said to reapply this means appeal. Personally the answer that experian holds is the omission of data registered at your address, i.e. you need to get put on the electoral register asap or forget it.

I'd certainly appeal, by sending a copy of your credit file to them.

YorkshireBoy

never-in-doubt wrote: »

I'd certainly appeal, by sending a copy of your credit file to them.

But that'd be 3 credit searches in total, made by a company that are known to be fickle with credit scoring.

OP has only been in the UK for 4 years, lives in rented accommodation, and is not yet on the electoral roll. Surely it's best to move on and try someone else (once on the electoral roll)?

never-in-doubt

YorkshireBoy wrote: »

But that'd be 3 credit searches in total, made by a company that are known to be fickle with credit scoring.

OP has only been in the UK for 4 years, lives in rented accommodation, and is not yet on the electoral roll. Surely it's best to move on and try someone else (once on the electoral roll)?

Yes sorry, I was referring to my original reply back in May (22nd) - at this point he should have sent the credit file. Pointless now as he's already failed scoring so no real way to appeal this.

To be fair, I appealed BOI Gold and got accepted and they done 1 search at application date and an unrecorded enquiry at appeal. So BOI do it half right, that said PO are nightmares with credit searches - I agree. may not be worth it, already told OP why he's been rejected - you concur so seems to be the reason.

nbr

Just to clarify, the denial letter states "All applications have to go through our normal credit scoring process and our decision is based on this analysis. Unfortunately, we are unable to offer you a credit card at the present". Nothing else!

I have already moved on. Again, I just want to make sure the electoral register was the only reason why I was rejected, so that, once on the electoral register, I can applu with ANOTHER credit card company and be SURE I do not get rejected AGAIN!

never-in-doubt

nbr wrote: »

Just to clarify, the denial letter states "All applications have to go through our normal credit scoring process and our decision is based on this analysis. Unfortunately, we are unable to offer you a credit card at the present". Nothing else!

I have already moved on. Again, I just want to make sure the electoral register was the only reason why I was rejected, so that, once on the electoral register, I can applu with ANOTHER credit card company and be SURE I do not get rejected AGAIN!

That answers it, you failed credit score and the reason was lack of E/R data.

Ok, no-one can ever guarantee credit, it is scored and assessed and can change daily. You can only apply, like the rest of us, but nothing is definite and not now - it is very hard to get credit of any kind.

I'd be looking at Vanquis, Aqua, Capital One, Barclaycard Initial to get yourself started - forget mainstream cards - you need excellent credit history with E/R registreation before they will consider you.

nbr

During these 4 years I have never applied for a credit card and went on with my debit card since I never needed I CC.

Only now, I will start travelling abroad a lot for work and my company wants me to use my own credit card. I was then looking for a cc with 0% charge on overseas transactions and the only the PostOffice one came out 1st on the comparison website.

That is the only way I will use the cc for, just for travelling for work.

I will now try to apply for the Abbey Zero cc. Apart from these 2, all the others have the usual 3% on overseas transactions. Do you consider Abbey Zero as tough as PostOffice for credit checking?

The E/R office told me they will put me on the electoral register on the 1st of July, then 28 days to make sure the details are up to date on Experian etc, we are talking about having a cc by the end of August....

It is just strange, though, that in my situation people keep on calling what I am doing "ask for credit" or "money lending", given that I will for sure not use the cc for borrowing money for 1 month! sorry but I find that revolting, but I think that comes with the current society.