Declined Overdraft

Eonel

OP is a life long customer of RBS & it is perfectly reasonable for him to expect his request for overdraft to be given preferred consideration.

However, that is not how the banks look at credit these days - as someone mentioned, loyalty is dead. Credit worthiness is assessed by a computer looking at your credit record and running through a credit model.

It can be sensible to pay 18.9% APR (for a few weeks) to invest in an ISA to receive 3.9% AER ( tax free for life ).

However it only works if it is for a very short term + is something would only be necessary to meet the ISA deadline in late March. Can't see any reason to do it in Sepetmber.

grandmaster2020

Hi All,

I have read this post and replies with some interest as I recently had very similar experience with Natwest. I applied for OD limit of £1000 and the bank declined.

I have several accounts with Natwest including business and personal loan for many years and never been in default. My supposedly 'internal' rating should not been any problem. On the same week I applied for personal loan of over £15k with another bank which was approved and money received without any problem. I did my credit check before applying for these loans and my externally credit files are clean and score is well above UK average.

I agree with some of the comments above that it is their money and I do not have god gifted right to get the OD etc etc. but as a valued customer I did have expectation that the bank should consider me for the OD.

Anyway as like OP I spoke with bank complaint team and after long debate the guy told me they refused because the 'external data' on my report says that I had been insolvent or bankrupt in the past and I should contact the credit agencies. He said they can not do anything to reverse the decision etc etc.

My problem with this statement is that- This is not true. I have a clean credit history and never had any bankruptcy or anything like that. As I said above based on my good credit history I was approved the personal loan on the same week and I have checked the credit files showing up the my report.

The bank advisor could not be specfic and can not do anything. I am thinking to complain to financial Ombudsman but not sure I have any grounds.

Could anybody help me in understanding what I can do to correct this error on Natwest file. I am not really keen on OD but on principle I think I should complain.

Thanks for reading the long post and look forward for your valued comments.

Cheers

Happy Snow.

innovate

You have the right to see all the data they hold about you. Without anything in writing, you will probably not get very far.

http://www.ico.gov.uk/for_the_public/personal_information.aspx

stclair

You could appeal the decision by enclosing a copy of your Equifax and Experian credit report. You could also complain to the ombusman however they can not force the bank to lend you money, plus you will need to exhaust the banks complaint procedure first.

grandmaster2020

innovate wrote: »

You have the right to see all the data they hold about you. Without anything in writing, you will probably not get very far.




Thank you very much for the reply. It is really helpful.

@Stclair- Thanks for the reply. the bank said they shall send me letter and I have already exhausted their complaint procedure. I can complain to fin ombudsman if I wish so.

Do you think it is good idea to send the copies of my credit report to ombudsman or the letter should be enough?

jonesMUFCforever

Even if you win at the Ombudsman I don't think they have the power to make Nat West give you an overdraft.
As you already have a big loan with another institution why not really make NW pay and transfer your accounts to another bank?

grandmaster2020

jonesMUFCforever wrote: »

Even if you win at the Ombudsman I don't think they have the power to make Nat West give you an overdraft.
As you already have a big loan with another institution why not really make NW pay and transfer your accounts to another bank?

Thanks Jones- I would have switched but I am tied because of conditions on my personal loan taken from Natwest. I cannot close account until that is fully repaid.

To be honest I like Natwest generally as it is much better and convenient for me. As I said I have been their valued customer for sometime. I personally think, because of this bad remark on my file Mr 'Computer' is not willing to change his mind. That is the reason I would like to correct the file rather than just changing the accounts.

I really did not need the OD, it was for the safety net in case I go above the limit.

stclair

grandmaster2020 wrote: »

innovate wrote: »

You have the right to see all the data they hold about you. Without anything in writing, you will probably not get very far.




Thank you very much for the reply. It is really helpful.

@Stclair- Thanks for the reply. the bank said they shall send me letter and I have already exhausted their complaint procedure. I can complain to fin ombudsman if I wish so.

Do you think it is good idea to send the copies of my credit report to ombudsman or the letter should be enough?

You can take your complaint to the ombudsman however the Ombudsman can not force the bank to give you an overdraft.

GooliesOfFire

Don't bother with the Ombudsman. You have no leg to stand on. The bank has no obligation to give you OD facility.

I wouldn't count on the bank to give you exact reason why your application was not successful. Expect a generic reply and suggestion to check your credit file with credit reference agencies.. Branch staff won't have a clue why your application has been declined so don't bother asking either...

_Andy_

The complaint to the FO is just going to waste more of your time.