Accepted online ..then rejected.

ferry

Just out of curiosity really- I applied for a Sainsburys personal loan online after a 9/10 possible acceptance rating by Moneysupermarket smart search.

Application went through and was accepted successfully but then had an email a few hours later telling me that they could not offer me the loan with the usual no explanation given
What actually happens in between the successful online app and the human intervention that make the difference between getting a loan and not does anyone know?

Just curious!
Thanks as usual

iolanthe07

Sometimes applications are referred to underwriters for a final decision if an application is borderline. They shouldn't have told you that you'd been accepted, though.

ferry

Thanks, Could I then have a case to get the search removed from my credit file in view of MoneySupermarket misleading me and the farce with Sainsburys?

marliepanda

ferry wrote: »

Thanks, Could I then have a case to get the search removed from my credit file in view of MoneySupermarket misleading me and the farce with Sainsburys?

9/10.

Not 10/10. Not misleading.

What did the actual 'acceptance' email say...

Lioness_Twinkletoes

No, because the log of the search is an accurate reflection of what happened. You applied for a loan; whether your application was successful or not is irrelevant.

brendon

Have you asked them to give you a reason? They are legally obliged to give you a reason (more than 'you failed the credit score').

iolanthe07

They are legally obliged to give you a reason (more than 'you failed the credit score').

I don't think they are 'legally obliged' to give a reason at all, though they might for goodwill. No bank has to give a loan to any applicant, just as no applicant has the right to demand a loan.

DevCoder

brendon wrote: »

Have you asked them to give you a reason? They are legally obliged to give you a reason (more than 'you failed the credit score').

No, they're not.

Otherwise if they told you why you failed then people would exploit the internal scoring algorithms.

somethingcorporate

brendon wrote: »

Have you asked them to give you a reason? They are legally obliged to give you a reason (more than 'you failed the credit score').

Under what law?

Sorry, but this is total twaddle.

YorkshireBoy

The Lending Code says...

Section 7[FONT=Arial,Arial][FONT=Arial,Arial]: Loans [/FONT][/FONT] [FONT=Arial,Arial][FONT=Arial,Arial]
[/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]Declining an application
[/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]166. If a personal customer’s loan application is declined following credit assessment, the subscriber should explain the main reason why if asked by the customer. This could be provided in writing or electronically, if requested. If the decline is as a result of information obtained from a CRA search, the customer should be given contact details for the CRA.

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf
[/FONT][/FONT]

[FONT=Arial,Arial][FONT=Arial,Arial]...which is why you'll only ever get a template letter back saying:[/FONT][/FONT]

Dear ferry

We're sorry but your application for a loan has been declined.
As part of our credit assessment we make searches of credit reference agencies.
You can view the information on your credit file by contacting Experian, and here's their address:


Experian
Landmark House
Experian Way
NG2 Business Park
Nottingham
NG80 1ZZ


Yours sincerely
etc
[FONT=Arial,Arial][FONT=Arial,Arial]
[/FONT][/FONT]