Club Lloyds current account - surprise decline

murmeltier

My wife applied for a Lloyds Club current account over the Internet. She's a home maker, so declared £0 income etc. She didn't ask for an overdraft.


Internet came back with approved (even showed sort code/account number), but said please provide ID in branch, which she duly did, only to receive an email a week later to say she's been declined (presumably after a human being reviewed her application).


This came a bit as a surprise, as credit file is in order (never missed a payment, mortgage, credit cards etc showing on file, only 1 credit search showing), and she's been approved in the last couple of weeks with Nationwide (sole), TSB (sole) and Halifax (joint).


Other than her being a "homemaker" we can't think of anything else why they would decline - has anyone else had unexpected declines before when applying for a current account as a home maker?


My only guess is that they don't think they can sell any of their other products to her so she's not worth their business.


I wonder whether they would decline me too - I'm quite tempted to find out ...

stclair

It's mostly likely because she put £0 income.

I thought you had to pay X amount of money into the account per month.

Spidernick

That's interesting - when did your wife apply for her account? I applied for one for my wife eleven days ago and we have still to hear anything (I was thinking of starting a thread on this). The initial e-mail she got straight away said something like they'd be in touch if successful, so I wonder if she hasn't been given the time that has elapsed.

My wife works part time and we are planning to put her salary in there and then top it up with a £500 standing order from the TSB account I opened for her at the end of last year to reach the £1,500 monthly requirement. Our credit rating must be excellent, so if she has been declined I wonder why. Perhaps Lloyds are starting to cotton on to people effectively using these as savings accounts and are declining on this basis?

Fruit_and_Nut_Case

stclair wrote: »

It's mostly likely because she put £0 income.

I thought you had to pay X amount of money into the account per month.

There's a £5 per month fee which you can avoid by paying in £1500 per month. The £1500 can be transferred out right away should you so wish.

murmeltier

My wife applied about two weeks ago. She provided ID in branch last Friday and got the decline email on Thursday.

She used the exact same details when applying for the TSB Classic Plus, NW FlexDirect or Halifax Reward which all have funding requirements and got approved instantly without the application being referred.

stclair

Fruit_and_Nut_Case wrote: »

There's a £5 per month fee which you can avoid by paying in £1500 per month. The £1500 can be transferred out right away should you so wish.

I'm aware of that however I think the £0 income has possibly swayed their decision more than likely.

MARTYM8`

Given that its an account that requires you to pay in £1,500 to get the interest/benefit and charges you a £5 fee if you don't - I am not surprised that Lloyds turned your wife down if she has no income

People get turned down for current accounts for all sorts of reasons - I got turned down by Santander whereas Lloyds accepted me. Who can say what factors caused this.

LeeBalders

Apart from the issue of declaring no income, it's possible that the three credit applications she made in a short space of time just before applying for the Lloyds have lowered her credit score... although I'd have thought that would result in an instant decline rather than having it approved and then declined. Still, something to think about.

Ed-1

LeeBalders wrote: »

Apart from the issue of declaring no income, it's possible that the three credit applications she made in a short space of time just before applying for the Lloyds have lowered her credit score... although I'd have thought that would result in an instant decline rather than having it approved and then declined. Still, something to think about.

If the Lloyds/Halifax et al system approves on initial application then more than likely it has been declined on stage 2 credit checking.

I've had accounts opened and then closed within a few days from Lloyds et al saying the application failed final checks. When I rang to enquire they said I'd failed stage 2 credit checks but wouldn't elaborate.

murmeltier

Thanks all - it does look like it failed at stage 2 credit checks, but what made them change their mind is anyone's guess.


I agree it's probably to do with the declared lack of income plus no previous relationship with Lloyds plus the previous applications at other institutions (although only one shows up on her credit file as an actual credit search).


Ah well ... shame about the missed 4% though.

Ed-1

murmeltier wrote: »

Thanks all - it does look like it failed at stage 2 credit checks, but what made them change their mind is anyone's guess.


I agree it's probably to do with the declared lack of income plus no previous relationship with Lloyds plus the previous applications at other institutions (although only one shows up on her credit file as an actual credit search).


Ah well ... shame about the missed 4% though.

If you apply in branch you're more likely to 'bypass' those sort of checks that are done on online applications