Loan & Account Upgrade Problems?

GreenfingersIlah

Never mind then

Apples2

I found reading that post remarkable.

What happened that pushed a loan requirement of £9.5k up to a whopping £12k?

This is an ex Bankrupt who is on a meagre wage with zero savings, zero dispoable income but looking to service a massive loan (??)

It almost reads as if it isn't your dad who even wants the loan but you are marching him into his bank trying to get him to get a loan to give to you (you say your Dad is the account owner but WE want a loan).

The whole post makes for some uncomfortable reading.


For info; you only need to pay £2 for a Credit Report, there is no need to sign up for a £15 a month "service".

Janie4Now

Ditto. None of this quite adds up and it has left me feeling uncomfortable, too.

I strongly suspect that it is YOU that wants the loan.....so I say leave your dad alone and get your own loan.

Or if the loan really is for him, perhaps you could take out a loan and he could pay you back since you believe he can afford the repayments?

Mara69

GreenfingersIlah wrote: »

We at no point thought that either application would be successful

So why apply? Why not take some responsibility for your father's applications? He is a bankrupt with a small wage and no savings and therefore has no chance of getting such a large loan. I am staggered that you're trying to blame the bank advisor.

Read up on the bankruptcy board on how your father can slowly rebuild his credit rating.

Eonel

I think that what you have received is possibly bad customer service, but not unfair practice.

The loans manager did not know as much as about applying for loans for former bankruptees as he should do. While the bankruptcy is on your file, mainstream lenders are very unlikely to lend to you.

When it is no longer on your file, a bank that was affected by your bankruptcy will keep that on their own internal records. You may have to find a lender that was not part of your bankruptcy.

Do not overplay the significance of 2 credit searches. It only has a short term impact on your credit record and within a few months will be of no relevance.

tonycottee

Apples2 wrote: »

This is an ex Bankrupt who is on a meagre wage

Does £26k count as a meagre wage now?

BugsyBrowne

tonycottee wrote: »

Does £26k count as a meagre wage now?

I hope not as I earn just under that and I'm well chuffed.

poppasmurf_bewdley

GreenfingersIlah wrote: »

Is this fair practice as it doesn't seem it to us?

Of course its fair. The bank is perfectly at liberty to decide who to lend to, or more importantly, who NOT to lend to.

Apples2

tonycottee wrote: »

Does £26k count as a meagre wage now?

I phrased it poorly.
£26k is not a good wage to go applying for £12k loans on.

If it were a £6k loan then £26k would be a good wage.

Personal opinion but for a £12k loan, I would like to see a £40k income.

SeanG79

There doesn't have to be any 1 specific reason why the loans are declined. The soft search provides an indication of what to expect. The advisor is not the underwriter/credit risk department.

If the underwriter/risk department overall get an uneasy feeling surrounding a loan they can decline the application and essentially dont have to attribute a specific reason for the decline. The overall credit covenant may not meet their criteria.

Bankruptcy on record will definitely not help an application, nor will minimal income through the account, nor will the lack of other credit, nor will the loan to income ratio. No 1 of those will necessarily result in the decline, but the combination definitely doesn't look good! Other factors will also come into consideration, like is the customer a home owner or a tenant (being a bankrupt but at the same address for the last 17 years, its unlikely his name is listed at land registry as the home owner)...