Appealing loan decision?

crazy_guy

Hi

I recently applied to the co-op for an unsecured loan of £14000 to consilidate my credit card debts and also my career development loan which i'm due to start re-paying in July 2010.

I have recieved a letter today saying that they are unable to agree the loan, in particular they are concerned that further lending will push my financial committments too far.

I clearly put in the application that the loan was for consilidating my existing debts. If anything, a loan would lower my repayments to a managable level.

It says near the bottom of the letter, that if i disagree with this decision I can reply to them and forward 3 months bank statements and they will re-assess my application.

Is it worth doing this? would they really re-consider the application or are they saying this just out of politeness?

Thank you:D

CHR15

The concern is that you may well clear all your outstanding debts, but will be left with a whole bunch of empty credit cards.

The likelihood is that you may run up the same debts again on the credit cards and be left in a whole World of hurt.

Example here of someone doing just that, but trying to blame everyone else:

https://forums.moneysavingexpert.com/discussion/2448209

You could challenge their decision and see if they have some mechanism in place where THEY pay off the cards directly, and close the accounts.

I would guess it is pretty unlikely but you would have more chance speaking to a person face to face, then a few button presses on a computer.

BLT_2

crazy_guy wrote: »

Hi

I recently applied to the co-op for an unsecured loan of £14000 to consilidate my credit card debts and also my career development loan which i'm due to start re-paying in July 2010.

I have recieved a letter today saying that they are unable to agree the loan, in particular they are concerned that further lending will push my financial committments too far.

I clearly put in the application that the loan was for consilidating my existing debts. If anything, a loan would lower my repayments to a managable level.

It says near the bottom of the letter, that if i disagree with this decision I can reply to them and forward 3 months bank statements and they will re-assess my application.

Is it worth doing this? would they really re-consider the application or are they saying this just out of politeness?

Thank you:D

You can of course send them 3 months statements, but unless there is a surplus at the end of each month I doubt they will reconsider, not least due to the size of the loan you are considering. Speaking on the phone will be of little use, you will be in contact with a member of staff who is largely a data input clerk, with no authority to alter the computers decisions

iolanthe07

The problem is that they see it as another £14K of debt because there is no guarantee that you will use the loan to consolidate.