Absolutely Fuming...financial association

psychobabble_2

OK need a bit of advice...applied for the M&S card for the 0% spend rate, have an excellent 999 score and over 40k of available credit according to credit expert. One of the web pages in the app. asks for partner details, so I give them but don't click the "do u want this person to be an additional card holder" didn't think anything of it until I get DECLINED:eek:. Check it out and M&S have used the details supplied by me to create a financial association on my file, have then checked his file - his rating is rubbish - and so consequently declined me:mad:.

Anyway I want to know:

1. if they can legally create this as i was not applying for a joint account, we have no joint accounts and the mortgage is in my sole name so no association whatsoever...

2. Should they not have notified me that they would check and amend my file with info given - although I guess it may be in the T&C's...will have to check that...

I have requested that a disassociation take place so hopefully no future probs.


Any advice appreciated

:A

platterfish

psychobabble wrote: »

, have an excellent 999 score and over 40k of available credit according to credit expert.

:A

This credit score is meaningless, Experian don't lend you money. I assume you earn over 80k a year? If not then I guess the 40k of available credit had a big negative impact to M&S. It might not have been your partner.

psychobabble_2

Why would the 40k of available credit have a negative impact? I thought the available credit was how much people would be willing to lend based on your income and current recorded committments

YorkshireBoy

psychobabble wrote: »

1. if they can legally create this as i was not applying for a joint account

Well clearly they can, but I would argue they shouldn't since the primary cardholder has sole responsibility for any debt placed on the account by the secondary cardholder. Of course that only relates to any account actually opened.

If it was me, and regardless of what it says in the T&Cs and their 'your guide to credit scoring' (see below), I'd make a complaint (followed by escalation to the FOS if necessary). I'd be asking them to remove the financial association - on the grounds that one didn't/doesn't exist! - and reimburse you for the costs of obtaining your credit files for a second time to confirm they've actually done it.

2. Should they not have notified me that they would check and amend my file with info given - although I guess it may be in the T&C's...will have to check that...

http://money.marksandspencer.com/pdf/CreditScoring.pdf (page 2, 2nd para)

http://money.marksandspencer.com/pdf/CCTC.pdf (page 5, 3rd para)

Re the T&Cs...you weren't making a joint application for joint borrowing, and that should form the basis of your complaint. However, they may argue that if you want to 'benefit' from the increased household income (ie better chance of acceptance/decent limit) then you should also be 'penalised' for any skeletons in the cupboard (ie poor credit rating of the partner)?

psychobabble_2

I didn't even apply for him as a secondary cardholder...and my sole income is good enough to cover i think.

Anyway, yes I didn't apply as joint borrowing so i am going to complain thanks!

chattychappy

In the old days, spouses were considered financially associated. Now, I suppose this has become people identified as "partners". It affects risk because people tend to pool income and expenditure. This, no doubt, is the justification for creating the association on a credit report - you told them you had a partner. It's a default risk assessment thing. If you say you have a partner, then it is assumed you are financially associated, though you can now disassociate.

Just because you put down a partner doesn't you are applying with joint liability, of course.

psychobabble wrote: »

Why would the 40k of available credit have a negative impact? I thought the available credit was how much people would be willing to lend based on your income and current recorded committments

No.... it is simply the amount of unused credit you have. Eg 10K limit card with 4K balance equals 6K available.

If you have too much available, CCs might be nervous to give you more credit in case you go crazy. On the other hand, if your borrowing is high and you have little available, you could be seen as desperate. Each lender would have their own formula, which is why credit scores are useless. CRAs supply the raw data and lenders make their own decision.