Mercedes Finance lease declined - crazy?!!

ShaneDavis

Hi all,

Recently applied for a lease with Mercedes... £300 pcm on a 24 month lease, 10k miles... applied through my company first, long 10 year trading history, £70k+ net profits after all expenses, salaries and dividends. Currently got a lease from Ford, no loans/debentures against the company. Declined! No reason given.

Told to apply personally... £45k income for years... £95k in savings... £120k+ equity in property... approx. £15k of credit cards available to me, all of which I currently have used up... but savings alone covers this money times over... 950+ Experian rating... lots of money left over each month... declined!! No reason given. Appealed the decision... 2 weeks later... still declined.

This is madness, surely? I don't understand it.

The broker I have been using has been TERRIBLE throughout the process... have had to chase them 3 or 4 times every time I've wanted a call back, and I don't know if I trust they have submitted all of the correct information or not. Just got a sneaky suspicion about them.

My questions... have you seen/heard of 2 cases where each should have been accepted, and was not?

Does it make a difference who you get the deal through? Would Mercedes decline an application through a broker giving a VERY good deal to accept other applications coming in from their own dealerships at full price?

Don't know... there's definitely something weird going on here, can't work it out. I've written a long letter complaining about both outcomes, but from what I've read on other forums, don't hold my breath in either hearing back, or getting anything other than 'our decision is final' back... even though the payments could be covered without any problems whatsoever.

Anyone shed any light?! Really disappointed with this.

worried_jim

Sounds like there could be a cifas marker connected to your credit report. Businesses don't decline business for no good reason, have you been a victim of fraud in the last thirteen months, or I hate to ask but committed fraud yourself? Maybe a dodgy claim on the holiday insurance? (Sorry to ask- sure you haven't or ever would).

ShaneDavis

Genuinely not done anything like that Jim. Always been very honest in my financial dealings. Never applied for credit outside of my mortgage - all the credit cards have been offered to me - and insurance policies are kept to the bare bones.

AdrianC

I wonder if there's some kind of question mark over the fact you've got £15k of (presumably) fairly high-interest debt on the cards, yet apparently more than that in savings earning (presumably) relatively low interest?

Hey-ho. If M-B's own finance don't want your business, get a lease elsewhere or buy a different car. <shrug>

ShaneDavis

Was thinking the same Adrian, but really want to find out why it's been refused - baffled. Sent an email to their underwriting team, but not expecting much back... have read lots of different posts on this forum regarding MB finance and people who have been declined without any rhyme or reason as to why...

ShaneDavis

Just been researching CIFAS... apparently even if you have a marker, it doesn't affect your credit score, it's there to actually protect you from fraud... is the line of thinking that underwriters might look at it, see they have to do additional checks, then decline it? Would have thought that's them throwing away good business. No signs of a CIFAS score on my Experian report...

gibby9

ShaneDavis wrote: »

Just been researching CIFAS... apparently even if you have a marker, it doesn't affect your credit score, it's there to actually protect you from fraud... is the line of thinking that underwriters might look at it, see they have to do additional checks, then decline it? Would have thought that's them throwing away good business. No signs of a CIFAS score on my Experian report...

Not relevant as you have no markers. Not all categories are there for your prevention. Some, like a category 8, are there to show the person has been involved in fraud themselves in some way.

worried_jim

gibby9 wrote: »

Not relevant as you have no markers. Not all categories are there for your prevention. Some, like a category 8, are there to show the person has been involved in fraud themselves in some way.

This is what I was thinking about, disposal of an asset owned by a finance company.

harveybobbles

It might be because you have used up your credit card limits and the ysee you as a risk?