Lloyds declined my application to upgrade basic account

BadBehaviour

I was told, when I logged into their online banking, that I was eligible for an upgrade. I decided to upgrade to their classic account. I didn't want an overdraft.

I received today their response and I was declined based on my credit history it appears. I was very surprised. I opened a standard Barclays account with no problems about 3 weeks ago; they credit-checked me and all was fine.

I don't have any late payments, defaults, CCJs or worse.

I have a credit card with M&S recently opened (limit is low and current usage is around 49%. Just paid well above the minimum payment).
I also have a mobile phone contract with 3 (I am 12 months into it); always paid on time. My Lloyds basic account is also on my credit file with all green dots since December 2012.

The only thing I can think of is that I might have on my Equifax credit file still a financial association with my partner. On Experian I had it removed, but I haven't been able to check Equifax yet. The financial association was wrongly created by M&S when I applied for their credit card.

Would that be enough to turn me down? Anyway, Barclays obviously had no problems with it. Should I appeal their decision?

BadBehaviour

It seems like they declined me because they are not prepared to give me an overdraft... but when I applied, it said the overdraft is subject to a further application, so why couldn't they just give me the account with no agreed overdraft?.

Lloyds_Bank

BadBehaviour wrote: »

I was told, when I logged into their online banking, that I was eligible for an upgrade. I decided to upgrade to their classic account. I didn't want an overdraft.

I received today their response and I was declined based on my credit history it appears. I was very surprised. I opened a standard Barclays account with no problems about 3 weeks ago; they credit-checked me and all was fine.

I don't have any late payments, defaults, CCJs or worse.

I have a credit card with M&S recently opened (limit is low and current usage is around 49%. Just paid well above the minimum payment).
I also have a mobile phone contract with 3 (I am 12 months into it); always paid on time. My Lloyds basic account is also on my credit file with all green dots since December 2012.

The only thing I can think of is that I might have on my Equifax credit file still a financial association with my partner. On Experian I had it removed, but I haven't been able to check Equifax yet. The financial association was wrongly created by M&S when I applied for their credit card.

Would that be enough to turn me down? Anyway, Barclays obviously had no problems with it. Should I appeal their decision?

Hi BadBehaviour,

Sorry to hear that it was declined. If you'd like to discuss this further, one of my colleagues at your local branch will be able to help. You can find info for your nearest branch on our site.

If you're unable to visit a branch, please give call us on either 01733 347 007 or 0845 3000 000 (lines are open 24 hours a day).

Thanks,

Craig

dumpyboy

Why do people from the company ie loads come on here saying contact them to look at it when this is usually the opposite to what happens when they had a chance before it was posted

happy_bunny_2

Get the link removed if on Equifax. Also check call credit (free via Noddle).

Then find another bank.

Banks sometimes hold info on you that means will never get approved for anything, irrespective of what's on your credit file. A new bank only see your credit file.

suziqqq

Got turned down from lloyds bank to port my mortgage had it for 13 years no missed payments no ccjs defaults or anything on my credit file, banked with them for 20 years. Keeps flashing up for me too to apply for a loan and credit card and although tempted they probably will decline that too ????

GingerBob_3

BadBehaviour wrote: »

I was told, when I logged into their online banking, that I was eligible for an upgrade. I decided to upgrade to their classic account. I didn't want an overdraft.

I received today their response and I was declined based on my credit history it appears. I was very surprised. I opened a standard Barclays account with no problems about 3 weeks ago; they credit-checked me and all was fine.

I don't have any late payments, defaults, CCJs or worse.

I have a credit card with M&S recently opened (limit is low and current usage is around 49%. Just paid well above the minimum payment).
I also have a mobile phone contract with 3 (I am 12 months into it); always paid on time. My Lloyds basic account is also on my credit file with all green dots since December 2012.

The only thing I can think of is that I might have on my Equifax credit file still a financial association with my partner. On Experian I had it removed, but I haven't been able to check Equifax yet. The financial association was wrongly created by M&S when I applied for their credit card.

Would that be enough to turn me down? Anyway, Barclays obviously had no problems with it. Should I appeal their decision?

This issue has been mentioned in another thread. It seems like the buffoons at M&S take it upon themselves to create a financial association when there's no such association. I wonder about the legality of that - aside from the point that with CRA reporting just about anything goes.

Specifically on the M&S matter, is this one for the regulator?

And it goes without saying that you should close the M&S card and don't do any further business with them.

BadBehaviour

I don't see any search from Lloyds on Experian or Noddle... and it's been a few days since I was turned down... It seems like they didn't really perform any credit check. In one of the leaflet enclosed with the letter they say they use Experian and CallCredit.

I have a balance on the M&S Card so I can't close it for now.

On Noddle I don't see any financial association. I believe that if Lloyds don't use Equifax, then the fact that there might be a wrong financial association on my Equifax report is irrelevant.

BadBehaviour

happy_bunny wrote: »

Get the link removed if on Equifax. Also check call credit (free via Noddle).

Then find another bank.

Banks sometimes hold info on you that means will never get approved for anything, irrespective of what's on your credit file. A new bank only see your credit file.

They said I was eligible for an upgrade, but anyway it's not a problem that my application was unsuccessful, since I will get a debit card allowing me to withdraw from any cash machine all the same even with a basic account, so upgrading the account wouldn't really give me any relevant benefit (I am not interested in cheque books or overdraft).

I do have a classic account with Barclays, but I have a direct debit coming out my Lloyds account, so I am keeping the account open; I don't wanna mess with the direct debit and it's my oldest account on my credit file.

Thrugelmir

BadBehaviour wrote: »

I opened a standard Barclays account with no problems about 3 weeks ago; they credit-checked me and all was fine.

In which case Lloyds will question the viability of upgrading an account for you. Along with wondering what you are up to.

BadBehaviour

Thrugelmir wrote: »

In which case Lloyds will question the viability of upgrading an account for you. Along with wondering what you are up to.

How would they even know I have a Barclays account if they haven't checked my credit reports (since there is no search on their part)? Also, there are people who have 4-5 bank accounts, I only have 2 and I have my reasons.