Car Finance...HELP

JB001

Hi all,

My partner has applied for car finance through BMW, this was accepted...happy days.

We went to pick it up on Saturday we went with the wrong docs (our fault) but also noticed that they has spelt my other halfs name incorrectly, spelling his surname with a 'C' instead of a 'K'

They have corrected this and resubmitted the application...it has now been declined.

I don't understand this...could this have anything to do with his sister who lives at the same address with same surname spelling who has a very bad credit record.

It seems crazy to me :mad:

Thanks

Tixy

No it won't have anything to do with his sister. Credit files are specific to the individual and providing they are not financially associated nothing on any family members file will affect your partner.

It could just be that in the time between the first acceptance and the second they changed their lending policy. I would have expect that if all other info was the same except one letter spelling that when they did the original credit check it would have gone against his credit file.
Partner could first get a copy of their credit file to see what is on there. If all is as it should be then it might be worth appealing the finance companies decision.

JB001

Thanks I just wondered if they put 2 & 2 together thinking they were married as the same address and surname.

Would there be a record of the orginal search on his credit record?

I am also wondering if that there was the original search there when they did the second one, that this has also gone against him?

I just dont understand how its gone from a straight accept to a straight decline in a matter of weeks.

NeverEnough

There have been a few reports about BMW Finance declining more and more people recently - perhaps tightening up their criteria? I would check all three credit ref agencies just to make sure nothing is amiss and if everything seems ok with your credit files, you could speak to BMW Finance or the salesperson at the dealership - try to speak to the dealerships financial controller, I've found them generally helpful - and appeal the decision, pointing out a possible confusion of identity, which IS possible - the CRA process is far from fair or perfect, whatever the propaganda may spout!! I've always found them reasonable and easy to deal with - currently have a BMW on finance with them and would use them again / recommend them. Hope you get sorted with it - a real disappointment when something unexpected like that happens.

JB001

We have got the files they did a search exactly a month ago as Tixy assumed.

The only change between now and then was during us changing bank accounts (no new search as have we had it set up before the BMW search) was my partner didn't set up the DD to an Argos card so he was late with a payment - under £20!!! They are hiding behind this.

The Business Manager is being very arsey, can I speak to BMW financial services directly or is someone with some authority in the dealership better? The business manager also said there was no way to appeal....they have also got Blackhorse to score without us agreeing to it....thats not allowed is it?!

Thanks for you help

michef

I arrange car finance for a living. Bizarre as it sounds when they did your search with the wrong spelling the credit files wont bring up any 'bad credit file info' against that name at the address and will approve you outright, the issue then arises when the proofs are presented and dont match the proposal and the deal cant/wont proceed. If when the application is resubmitted with the correct name spelling it could be that there is other info that doesnt quite meet their score card or a financial association somewhere on the credit file to the sister, maybe a joint application, anything from the past that has linked the 2 files, resulting in the decline.

Most finance companies are reluctant to disclose why they have rejected someone and its usually ' refer to credit ref agencies' as the standard response to get you off their backs. The business manager at the dealership could appeal this and could try to dig deeper into the decline, its whether he catches the underwriter on a good day or not, some just wont budge as its not ethical for them to tell you why.

You can write to BMW finance to appeal the decision, how far it gets you who knows as they are a law unto themselves, send a copy of your credit files showing its clear and youre not over comitted with no late payments and they 'may' overturn the decision. Its probably a waste of time ringing BMW finance they are unlikely to speak to you over the phone about the reasons for the decline.

I cant tell you how many applications have been declined recently from what 'appear' seemingly perfect application forms. Always worth getting recent credit reports from both Experian and Equifax.

When you completed the application form it may have referred to you being searched by credit companies (plural) so this will cover the dealers back if he re-proposed you without you knowing, however he ought to have made you aware that you were being searched more than once.

Hope that helps.

JB001

That helps a lot thanks, now I understand why.

I work in financial services and what he was saying simply wasn't making sense to me.

Thanks again....though if we are refused for a car loan, I dread to think how many others are...god help the car industry!!!