Application for loan refused - WHY???

emmajfry74

Experian_company_representative wrote: »

No they have to be more specific than that. They should be able to tell you, for instance, whether you didn't get enough points on their credit scoring, or you owe too much on existing credit, or there's adverse data on your credit report, or your disposable income is too low, and so on. This is required by industry codes.

James Jones

After 2 letters we have finally got an answer from Halifax - well actually its not an answer.

They have said that they cannot give us a clear reason or explanation for the loan application rejection or tell us which of their qualifying critieria we failed to meet as it is "Business Sensitive"!!!

What does it take to get a straight answer from these people?:mad:

I am going round in circles and it is so frustrating!!!

Can anyone help?

James - can you be more specific at what EXACTLY they are meant to tell us, when we ask?

Please?

Mhambi

emmajfry74 wrote: »

After 2 letters we have finally got an answer from Halifax - well actually its not an answer.

They have said that they cannot give us a clear reason or explanation for the loan application rejection or tell us which of their qualifying critieria we failed to meet as it is "Business Sensitive"!!!

What does it take to get a straight answer from these people?:mad:

I am going round in circles and it is so frustrating!!!

Can anyone help?

James - can you be more specific at what EXACTLY they are meant to tell us, when we ask?

Please?

He was very specific.

No they have to be more specific than that. They should be able to tell you, for instance, whether you didn't get enough points on their credit scoring, or you owe too much on existing credit, or there's adverse data on your credit report, or your disposable income is too low, and so on. This is required by industry codes.

I can understand why they are so shut up about it. Think about it. If you would know the lending criteria of a lender it would be easy to alter your application so that it will fit their criteria.

I can understand your frustration about it. I would say that, if you want to follow this one up, the Financial Ombudsman would be your best chance to get any further information.

Just be aware of one thing please. As more you dig in to this as more you SEEM to be desperate (I know that this is not so but a lender may think so) and that MAY be seen negative as well.

Banks in general are still frighten to lend because of what happen over the last few years and suddenly many of people finding themselves squeezed. Sadly that reflects in the lending figures.

Also, have you calculated in your Mortgage? It is very likely that Mortgage Payments will go up soon unless you have a fixed rate Mortgage. If you have negative equity and a high Mortgage it may have a huge influence on how they judge you in their criteria.

I am only saying what could be and not what is. I hope you realise this.

ReadingTim

OP - can you confirm whether it's a Halifax loan to pay off a Halifax credit card?

If it is, then they're not going to give you the loan, for the reasons outlined in my previous post. The 'business sensitivity' they quote is the fact that they get more money from you if you're borrowing on the credit card than if you consolidate this into a loan; but they'll never admit this, regardless of the number of sections you quote from a voluntary code.

Furthermore, consolidation loans are dealt with in para 193 of the code, on page 31: "Exceptionally there may be circumstances in which it is appropriate not to reduce or pay off existing borrowing"

Lending criteria are discussed in para 50 of the code on page 11 – the usual things you’d expect, but also “internal credit scoring techniques”. However, disclosing these, as Mhambi says, could lead to customers manipulating their application (aka lying) to meet the criteria, and competitors ripping off the Halifax’s businesses model and undercutting their business – hence it being ‘business sensitive’!

Sorry if this seems harsh, but you're simply not going to get this loan from the Halifax, nor a specific answer as to why not. As the code says, (para 56): "If a lending application is declined following credit assessment, the subscriber should explain the main reason why if asked by the customer". This they have done - "Business sensitivity". They are under no further information to disclose anything more to you, nor grant you this loan.

Apples2

I don't understand why you are beating yourself up over this and going around in circles.

You can't FORCE a lender to lend you money, you have no right to a loan from any lender.

Halifax said no, forget it and move on, go to another lender.

Have you sussed out the credit score you received is completely worthless?
The people who give these scores out only do it to make money.

Lenders use MANY more factors in their scoring methods which the credit agencies do not consider (debt to income ratio one of the biggest factors).

emmajfry74

Apples2 wrote: »

I don't understand why you are beating yourself up over this and going around in circles.

You can't FORCE a lender to lend you money, you have no right to a loan from any lender.

Halifax said no, forget it and move on, go to another lender.

Have you sussed out the credit score you received is completely worthless?
The people who give these scores out only do it to make money.

Lenders use MANY more factors in their scoring methods which the credit agencies do not consider (debt to income ratio one of the biggest factors).

If you read my original post you will see that I am not trying to "force" them to lend us money or to reverse their decision in ANY WAY- I was simply trying to find out why as it was a complete surprise to be rejected.

I am sure everyone has been rejected at some stage in the past for something and you have wondered why as it made no sense? I am sure I am not alone in this

There was also the worry that something may have been recorded incorrectly and so to be able to find out what that was, so that we could correct this for the future.

ILW

Experian_company_representative wrote: »

The lender should be able to tell you the main reason. I don't think the explanation you got on the phone is sufficient. I suggest you write to them and ask them to provide as full an explanation as possible, citing that you've checked your Experian report and can't identify a problem. Hopefully they'll be able to shed some more light on this for you.

Just to clarify, the Experian Credit Score is just a guide for you, it is not a score lenders use. However, it certainly indicates you have a strong credit history.

James Jones

So, are you saying it is basically a waste of money and just an "earner" for your company?

Peelerfart

ILW wrote: »

So, are you saying it is basically a waste of money and just an "earner" for your company?

I view it more as, it's something you can buy that no-one really cares about, a bit like Michael Barrymore's Greatest hits.

jon_boy75

HOLD THE FRONT PAGE! Person with high credit score gets refused credit!

Where will it end? Credit is much harder to come by these days, even with your fabricated high credit score. Switch on the news to find out why.

Just go to another one or two lenders and ask them. Lenders subscribe to various codes on paper, but adhere to very few of them. Nobody forces them to stick to the rules, and therein lies the problem.

chanz4

People are getting tighter at lending money, as above its on the tv people loosing jobs on here also loosing jobs, bankrupcy and the how can I get out of it. I would just put it behind you as apples said as they wont say

Experian_company_representative

ILW wrote: »

So, are you saying it is basically a waste of money and just an "earner" for your company?

No, not at all. If you want to know what state your credit report is in then the score is the best way to find out. It boils all your data down into a single number, essentially raking you against other customers.

What the score can't do, however, is tell you whether you're going to definitely get credit because lenders look at more than just your credit report and they also each have the own customer wish-list and express this in their selection processes.

Anyway... 'Business sensitivity' was not the reason given for refusing credit; it was not meeting their criteria. IMO lenders should be more forthcoming than this. They don't have to give you credit but they have to treat you fairly.

James Jones