Declinded Credit from Vodafone

CannonD2

On the 3rd of Jan I decided to get a mobile wifi unit for my Mom, the best deal was with Vodafone 3gig £12/month. I went in to the shop and proceeded to place the order. my application for credit was declined. This was a massive surprise as I have never been declined before and never missed a payment on anything. I have lived at the same address for over 13yrs with no other financial issues. the salesman called the credit checking dept and that said it was the correct decision to decline but would not give another reasons.
I have now got a full credit report from Experian, this states a rating of 999 and excellent with no alerts or warnings, it does show Vodafone carrying out a credit check. Vodafone said they used both Experian and Equifax, I have also paid for a standard report from Equifax which also shows no issues, also no check from Vodafone.


I have tried to escalate this with Vodafone but I have just been told the decision is still correct and to write in to head office if I wish to take it further, this seems very poor that they can do this, what is my best recourse of action now? will this now effect other credit checks. I was going to change my car in a few months but I'm now worried about applying for credit.


Thanks In advance.

Dr._Shoe

It's probably because you have "too much credit". Sometimes it happens that an assessment is made about how much you can afford to pay and so credit may be declined if an acceptance would put your monthly outgoings above a certain level.

I don't know if it's an urban myth or a lie but there have been people turned down for a new credit card because they always settle their balance every month and thus don't generate an income for the company!

Sometimes it could be someone at your address who have defaulted with them in the past.

CannonD2

I do pay my CC off every month, this is only £12/month. The frustrating thing is they won't tell me why. Even with my available credit my salary would cover it.

just.me_3

Don't forget that the retail staff and those in the call centre will most likely either see a simple Accepted / Referred / Declined result - they won't see the reasons behind it as it's generally a computer making the decision based on its assessment of whether it wants you as a customer.

When you say your credit card is "only £12 a month" does that mean you're paying the minimum balance each month? Or are you spending exactly £12 each and every month then paying that off in full? It seems a strange balance to have each month...

It could be absolutely anything. Vodafone will set certain criteria into the system which will look out for things on credit reports. For example, they could very well have a setting such as "if customer has credit card with limit of <£500 then auto decline" because they could view that a low limit on a CC indicates you're not trusted with a higher amount. Or it could be something to do with your post code - high risk for fraudulent applications. It could be even something like how many accounts you have open. Do you have open accounts that are unused, therefore no activity showing and not being able to demonstrate to Vodafone your payments are happening?

Sparx

Well, you know what to do then don't you? Vote with your feet and go else where! O2, Tesco, EE, Giffgaff, Three?

Vodafone's data network is very poor anyway. It's the reason I moved away from them.

arbroath_lass

just.me wrote: »

When you say your credit card is "only £12 a month" does that mean you're paying the minimum balance each month? Or are you spending exactly £12 each and every month then paying that off in full? It seems a strange balance to have each month...

I think the OP meant the Vodaphone contract was only £12 a month not the CC payment.

just.me_3

arbroath_lass wrote: »

I think the OP meant the Vodaphone contract was only £12 a month not the CC payment.

Ah yes, you're right. It's how I've read it - thanks

Thrugelmir

CannonD2 wrote: »

I have tried to escalate this with Vodafone but I have just been told the decision is still correct and to write in to head office if I wish to take it further, this seems very poor that they can do this, what is my best recourse of action now?

There's no obligation to conduct business with anyone. Use a different supplier.

CannonD2

Yes, the contract was £12/month. I will of course vote with my feet I'm just frustrated why I have been declined and would like an explanation, I have been very patient with the people I have been dealing with as I do understand that it is as you say "Computer says NO"


I'm also now concerned at going for credit elsewhere, will this effect me, I cant see it recorded on either Equifax or Experian, and I can only see a credit request from Vodafone on Experian.






Do Vodafone have an obligation to explain why they declined me or can they just say tough !!!!!! mate?


Thanks

Candyapple

CannonD2 wrote: »

I'm also now concerned at going for credit elsewhere, will this effect me, I cant see it recorded on either Equifax or Experian, and I can only see a credit request from Vodafone on Experian.


Do Vodafone have an obligation to explain why they declined me or can they just say tough !!!!!! mate?


Thanks

No, they don't have an obligation to explain why they declined you, they'll just refer you to check your credit files.

One search on your files from Vodafone shouldn't affect you applying for another contract elsewhere.

CannonD2

I have checked Experian and Equifax credit reports and both look fine so I have no idea why they have declined me and if I'm not told how can I resolve it?


The not on the Experian file just says Vodafone requested a search on this date etc... nothing about being declined which as I understand it wouldn't because all Experian do is provide the info it is then up to Vodafone to interpret it along with other criteria I guess and decide to give me credit or not. I have never held an account with Vodafone nor has any of my financial associates listed on my report so I cant see it being from historical issues.


Is there an ombudsman I could take this further with?