Campaign to Force Companies to disclose reason for refusing credit

rjm67

Hi All,

Having been refused credit for the first time in my life recently (I have a very good record, and I'm an existing customer??), I feel that companies should be required legally to tell you precisely why they have done so, and give you the chance to correct it if appropriate. Whilst I accept that you have no right to expect credit, if they refuse it, there should be a precise reason why. How can people improve their credit rating if they don't know why, or complain if the process being used is illegal or unjustified.

If anybody else feels the same, would they give their support in my poll?(Perhaps this could be made a sticky?)

Any other comments would be appreciated. I don't intend letting the organisation concerned get away with their vague answer, and I'd like to push this one further in general.

P.S. I've contacted the law society, and I'm going to try my MP and the FSA.

Luke

rjm67 wrote:

Whilst I accept that you have no right to expect credit

That's right you don't. If you are happy that you are financially fit stop worrying. It is they who are losing out, make sure you don't put anymore business there way.

I don't think they should have to tell you an exact reason. Undoubtedly there would be costs involved and as the customer you will pick up the bill one way or another.

SAP_Saver

I found it funny to watch spendaholics on the BBC the other day and see a Mortgage underwriter £16,000 (think it was £16k) in debt...
Funny how she can't afford to drive her own car to work anymore but decides all day long if people are or are not good payers...!!! makes me sick...!!
I think that a *real reason* should be given in each case!

regularsaver1

sometimes its more than the credit score - its affordability, not being on electoral roll, no home tel num (some lenders like this), not being in job long so hence reasonability, not lived at address long, moved several times in last few years - ect


oh and catch22 situation - no credit to assess so how are you supposed to get it in the first place

savvy

Yes I think you should know the reason, it could perhaps be refused through a mistake made by someone else, you therefore need to know this to be able to get it rectified!



I'll make this a sticky for a week or so

groovycats

Yes I think that they should give a reason - when I have been refused they just tell you to contact Experian so that you can see all the credit listed against you - but thats not good enough if they are happy that you are who you say you are then they have no reason to withold the information.

Gonzo1966

I have just recieved a letter of apology from Capital Bank PLC following finding an incorrect entry on my credit file stating that I owed £14,422 and had seriously defaulted on the agreement, when in actual fact I had voluntarily terminated a financial agreement back in 2003.

Although I am very happy to have this letter of apology and checking my credit file today the information has been rectified, I feel a bit miffed, as I was turned down for a mortgage with Northern Rock back in 2004 and Northern Rock actually use Experian.

The above information did not appear in my Equifax report and I did present my Equifax report to the people at Northern Rock, and they were very confused.

Any views on this would be greatly appreciated.

rjm67

Your example Gonzo1966 is precisely why companies should tell you why they have refused your application, and why the system should make sure all three of the credit check companies information is kept up to date! The more I've looked into this, the less sense it makes, and the more hit and miss things seem to be with regards how companies use the information. Not sure what viws you were looking for though?

As an aside, despite findng some missing information on my Experian report the organisation concerned are still refusing my application. I haven't finished with them yet though, I don't give up that easily.

Gonzo1966

Thanks for your response rjm67.

I guess I was looking for views on the fact that this incorrect information stopped me fromgetting a mortgage and I feel that Capital Bank should be penalised.

I really don't understand why the credit companies have to be all 'secret squirrel' about everything, why can't they just tell us.

rjm67

I doubt that you would get anywhere with this claim as the argument would be that it's your responsibility to check your credit file at the time your were refused the mortgage from NR. I doubt you'd get anywhere with it.

rjm67

Come on people vote on the poll!!!!! Less than 10% of the 450+ views have voted. Most disappointing.