Rejected Estate Agent Credit Check - Failed the "Affortability" criteria

koloko

nzseries1 wrote: »

Call me skeptical, but how can we even be sure that the house is genuinely for rent, and the agents aren't simply signing people up, then failing them on something totally made up, i.e. "affordability", "landlord's changed his mind", "the planets are incorrectly aligned", and then simply keeping your non-refundable application fee and showing you the door?

I'm not going to lie and say this thought hadn't crossed my mind...

hazyjo

Ooops sorry, missed the key word: 'rent'!

Jx

johnnyredgate

If you don't have any debts then you apparently are likely to fail credit checks as they don't have enough information to go on to say that you are good at making repayments etc, not enough information seems to equal a fail. I don't think they look at how much you earn/savings etc - I think there could be a failure of the EA to understand what the credit is telling them and they need to look at the report in in relation to your income/savings, sometimes if you offer to pay 6 months rent in advance you can get round this problem. Very annoying for you

koloko

Well an update on this:

I've found that the credit reference company wrote to my employers to ask them to confirm that I earnt enough to afford rent of £8,500 a month, not £850. My HR department wrote back saying "No".

I can only imagine this is why we failed the credit check.

I've phoned the estate agent with this information, but they say as they outsource the credit check to a third company they can't help us - something about the information being confidential (it's information on me though!?! Don't I own it?).

All a bit frustrating, I certainly won't be returning to that agent.

rentergirl

Write a chancey letter quoting vague 'data protection issues' and say they have to let you know which credit checkers they have used (can anyone correct me - I think they might be legally obliged to tell, but might wishful thinking..) they have used, and then demand the money back in its entirety.

betmunch

koloko wrote: »

I've found that the credit reference company wrote to my employers to ask them to confirm that I earnt enough to afford rent of £8,500 a month, not £850. My HR department wrote back saying "No".

On a side note, how are your employers qualified to advise on what you can and cannot afford on your wages?

Surely they should just be confirming your salary, how you spend it is up to you.

Not that its really relevant, just interested!

DVardysShadow

betmunch wrote: »

On a side note, how are your employers qualified to advise on what you can and cannot afford on your wages?

Surely they should just be confirming your salary, how you spend it is up to you.

Not that its really relevant, just interested!

Absolutely. The way the question was framed is outrageous and it is even more outrageous for HR to answer that or do anything other than confirm a salary without checking back.

I would keep HR on side and get a copy of the letter asking for confirmation of £8500/month affordability and then go back to the agent and ask for the referencing fee back in full. And small claims court thereafter if necessary.

koloko

betmunch wrote: »

On a side note, how are your employers qualified to advise on what you can and cannot afford on your wages?

Surely they should just be confirming your salary, how you spend it is up to you.

Not that its really relevant, just interested!

Actually HR gave me a copy of the letter, so here is the wording they used if you're interested.

Letter_from_Credit_Check_Company_to_Employer wrote: »

"Dear Mr X,

The above named person wishes to rent a residential property and has authorised us to contact you for the purpose of providing an
employers reference, which is a legal requirement before a tenancy agreement can be prepared. We are seeking your assistance to assess the above named persons affordability and suitability to the aforementioned tenancy agreement.

I would be grateful if you would complete the attached questionnaire and return it to me as soon as possible on Company Headed paper, either by fax or by scanning and emailing back to me. Failure to return this reference may result in a delay in the processing of this application, thus preventing the applicant taking up the tenancy. We will not be held responsible and waive our legal obligation under this circumstance.


This tenant has applied to us to take out the tenancy of a residential property with a monthly rental value of £8,500.

1. Date employment commenced?
2. In what capacity is the above named person employed?
3. Is this position permanent, fixed term or temporary?
4. If fixed term or temporary please give termination date?
5. If permanent, any reasons to believe employment will not continue?
6. Does the above named persons have any performance issues?
7. Employees current address?
8. Current gross salary?
9. Details of any commissions
10. Details of any bonuses
11. Registered Company Name:
12. Registered Address:
13. Registered Company Number?

"

betmunch

Thats a little different to what you put in your earlier post!!!

I think thay are all fair questions for a reference.

Theres no part where they actually ask your HR department if you can afford the rent!

Think they will be able to correct everything once they have realised their mistake.

princeofpounds

You need to really bully the agents on this one, to go and get the reference check recalculated. Show them the letter, insist it was their mistake.

If they refuse, I would threaten them with OFT and the small claims court. I am pretty sure they have a duty to process a task you have paid for properly.

I think there is probably a good amount of multiple credit-checking going on in the market. These things rarely cost more than £50 and are 'sold' for a huge mark-up, so it's in the agent's interest to check as many people as possible and give an arbitrary reason for failure to anyone who is not selected. It seemed to happen a lot when I was a student, but not so much when moving out of the bottom end of the market.