V12 Retail Finance - Application Declined

Pvd

I was refused credit by V12 retail finance. I have a very good credit rating with Experian (900+ rating). V12 have to date refused to provide me with any reason for declining my application (despite following their instruction to contact them via email to receive further information). In addition they are refusing to provide me with copy of their lending policy as referred to in their terms and conditions.

Who are they regulated by?

What are the next steps I should take as I feel that I have been unfairly treated and was only declined due to having too good a credit rating.

Any advice appreciated.

arcon5

Use the likes of experian to check your credit report.

Getting a loan is not a right, it's a service - and like all business' in all industries they can choose who they target their products at.





http://www.fsa.gov.uk/

Pvd

arcon5 wrote: »

Use the likes of experian to check your credit report.

Getting a loan is not a right, it's a service - and like all business' in all industries they can choose who they target their products at.

Thank you for the quick reply, I have already checked my credit report and rating from experian and score is 900+ with no "red marks". Would just like to find out why they have declined my application as the whole situation was terribly embarrassing having never had this happen to me before.

wealdroam

OP, I can understand that you may like to know why you were turned down.

However, you have no right to know how the company arrived at their business decision.

You can ask, and they can always refuse to tell you.

Shrug it off. No need to be embarassed.

Have you read MSE's Credit Rating article?

That explains it so much better than I can.

Hintza

Kirby11 wrote: »

This is completely over the top, you have no right to this as someone else has said.

Why? Would you not want to know what was going on if your credit rating was fine?

antrobus

Pvd wrote: »

...

Who are they regulated by?

Nobody really. All they have and need is a Consumer Credit Licence issued by the OFT, and as long as they abide to the letter of the CCA no one's going to take it away from them.

Pvd wrote: »

...
What are the next steps I should take as I feel that I have been unfairly treated and was only declined due to having too good a credit rating.

That appears to be the allegation; there is this thread here - http://www.moneysupermarket.com/community/forums/t/experian-credit-score-891-v12-finance-turn-me-dow-39641.aspx?PageIndex=1 - where a number of posters appear to think that is the case. To explain; V12 finance offers point-of-sale finance to a number of retailers, and naturally offer interest free credit deals. The suggestion is that they appear reluctant to offer such deals to people who they believe are sufficiently well off to take advantage of them.

Sadly I don't think there is anything much that can be done about this practice.

shaun_from_Africa

Pvd,
Was the finance for one of the "buy now and nothing to pay for 12 months" type deal, and then providing you pay off the amount of the loan at the end of the 12 month period, there is no interest to pay?

If it was, this would probably explain why you were refused credit.
The credit company want people who take out the finance then don't pay it off in full as people like this don't earn them any money.
They would prefer people who tookout credit then took 3 or 4 years to pay it back paying 20-30% APR on the money.

Why? Would you not want to know what was going on if your credit rating was fine?

Most people would want to know, but as Kirby11 and wealdroam rightly stated, you don't have the right to this information.
You may get it if you ask the company concerned, but attempting to go to the regulatory body to make a complaint is pointless.

arcon5

Having just looked at the website I now see it is in fact business finance you are looking for. There will be so many other factors they would consider

- legal formation (ie ltd, sole trader, LLP)
- turnover
- balance sheet
- trading history
- current level of credit

If you have an exceptional credit rating you may be able to approach a mainstream bank for a personal or business loan if you offer up a personal guarantee

pmduk

Hintza wrote: »

Why? Would you not want to know what was going on if your credit rating was fine?

The only credit rating that matters is the one calculated by the company that is providing credit. They will have their own means of calculating this which they will not share with you for security reasons.

mattyprice4004

Just to echo, they don't have to tell you why they declined and there are no further steps you can take.

pmduk

Pvd wrote: »

I [...]was only declined due to having too good a credit rating.

If this is the case there are still no grounds to complain. A company can choose who they wish to deal with. If they decide not to deal with customers that will cost them money, (in this case by paying back before the interest kicks in), then that is their right.