Cash accounts - At my wits end : (

jcpcelt

izools wrote: »

Problem is Lloyds TSB use a "Neural Net" credit scoring system which doesn't have pre-defined critera for accepting or declining applications - it looks at existing accounts, and existing customers with credit facilities - how well they are doing with said facilities - and as the account performance trends change on existing accounts - the type of customer, their current account conduct trends, their spending habbits, every thing about them the computer can analyse - is fed back into the credit scoring model, which them compares the applicant against other customers with a similar or identical profile - and based on how similiarly profiled existing customers perform - it makes a decision.

Quite correct, the Credit Policy Decline is indeed due to NN system implemented several years back, but actually it can and is affected by a human touch now and again.

The subject of eligibility for Cash account to upgrade to our (yep, sorry i'm an LTSB employee) classic or AVA accounts is not primarily refused to this however, but rather due to the "risk band", which is actually a determination of value to the bank as well as perceived risk of lending.

I'd recommend going in to see your branch manager, and having a manual income and expenditure assessment and take a copy of your credit report along with you too, and hopefully this can be sorted. Alternatively, you can always call the phonebank and ask to close your account, hopefully they'll show initiative to get you through to a retention unit who will offer you an upgrade if you are in top half of the scale of this value/risk banding.

Anyone with a cash account looking for classic/ava eligibility will generally need to leave £50 or so in the a/c before regular credits and have a savings account to which they add and do not withdraw and a slice of luck too.

TBH we really need to sort this issue out, as we have a lot of customers in similar situations, who run their accounts very well. We are an incredibly conservative bank though, and cling to the idea of there being no such thing as entitlement.

jcpcelt

I would also like to reinforce that CPD is not a never-ending cycle at all...

I have the luxury of being able to monitor my eligibility at will at work, and have seen CPD slowly come off on Overdraft and the limit of the overdraft and also a credit card, though I am still CPD for a loan 9 months after switching to LTSB from Nationwide (no surprise- we're hugely conservative on Loan eligibility).

sscott5581

I have two current accounts, three savings accounts and a credit card with Lloyds, one account has an overdraft of £1000 and one has an overdraft of £100. All my accounts are operated with no issues and Lloyds are my main bank where my salary is credited.

I went into the branch the other day and asked to increase the £100 overdraft to £1000. I was told that this shouldn’t be a problem, apparently my rating is 1, however when she checked the system I was asked if I had problems with my credit file as there was CPD marker on my account, I explained to the advisor I had a flawless credit file with no adverse information at all.

I sent a letter of appeal to Lloyds Lending with a copy of my Experian credit file; I received a reply explaining that they could not reverse the decision to offer me an overdraft – no real reason given.

The laugh if it is when I went into the branch in November to open my credit card (which was pre-approved) I was asked if I wanted to increase my overdraft as there was £2000 available.

Is there anything more I can do or do I just wait until this marker is removed from my account?

Thanks
Steven

coolesticeking

Yup, it's a strange system Lloyds do have..

When I was last in branch they said someone came in and it had pre-approved them for a £10,000 loan.. Said they would think on it and came back the next month but the pre-approval had gone and was no longer eligible after a check.

Werid!

I'll be glad when CPD comes off account, but I have the Offline Debit Card with the Classic account so I don't care really about anything else.

coolesticeking

sscott5581 wrote: »

I have two current accounts, three savings accounts and a credit card with Lloyds, one account has an overdraft of £1000 and one has an overdraft of £100. All my accounts are operated with no issues and Lloyds are my main bank where my salary is credited.

I went into the branch the other day and asked to increase the £100 overdraft to £1000. I was told that this shouldn’t be a problem, apparently my rating is 1, however when she checked the system I was asked if I had problems with my credit file as there was CPD marker on my account, I explained to the advisor I had a flawless credit file with no adverse information at all.

I sent a letter of appeal to Lloyds Lending with a copy of my Experian credit file; I received a reply explaining that they could not reverse the decision to offer me an overdraft – no real reason given.

The laugh if it is when I went into the branch in November to open my credit card (which was pre-approved) I was asked if I wanted to increase my overdraft as there was £2000 available.

Is there anything more I can do or do I just wait until this marker is removed from my account?

Thanks
Steven

All I know is the CPD marker can be placed on the account if they feel you have reached the maximum amount of credit they are willing to allow you..

Does not mean you are a bad customer though!

Saints2011

Risk band 99 = Cash Account

Risk back 9 -1

9 being the worst and 1 the best which dictates APR's on Loans and eligibility for Credit Cards & Overdrafts and account upgrades.
There is also a loan indicator.

Go into the branch, sit down and see what you are.

If your Credit Policy Decline then its internal, if its Credit Bureau Decline its your credit report, or of course you could have a Level of Indebtness indicator.

Look for any figures shown next to your report which the manager can show.

iereboy

Sometimes Cash accounts have a risk band of 9. This is very rare. This allows a customer to upgrade especially if the indicators show "eligible for select"