Error on Banks System, won't uphold decision

Chuffter

Hi,

Got a bit of a strange one, my wife applied for a loan through our bank on-line. We already had a loan with them so was looking for it to be re-financed with an additional amount to buy some furniture that we needed.

She did this on-line, submitted the information on their website requested, loan was approved and we e-signed the agreement.

We have a copy of the agreement on our e-mail and it says on our account online that the loan is approved.

However, when my wife tried to go back into our account to see if the money had gone into our account it kept asking her to sign the agreement again. It kept doing this whenever we logged in, each time we got a new agreement on our e-mail.

She called the bank and asked what the problem was, after speaking to 5 different people who didn't want to know she spoke to someone that said there was an indicator on the account regarding our address that was holding it up. He sorted this and said that if we went back in and did the e-sig again that all would be fine, she confirmed that the loan was okay with the advisor. He said, everything is fine, its just a glitch.

We did what he said, same thing happens, every time we logged in it kept asking for us to sign it.

The next day we called the loans team and explained what happened, they told us the only way around it was to do a new application, She spent an hour and a half on the phone in total. They went into a total income and expenditure (which the website does not bother with) at the end of it all they said that its been declined because they have deemed we cannot afford it. Also that the second application overrules the first which was approved based on less information but because of fair lending they have to go with the second.

We've complained and got the call fees back but they still are refusing to honour the original approved agreement.

So I don't quite know where we stand, If they are fair lending rules, why does the website ask for less info? I have the agreement on e-mail, from my understanding this is a legally binding document and is not being fulfilled by the bank? I don't know if thats right.

So basically, HELP!!?? We've ordered the furniture using our savings so its not the end of the world but would like to put the money back into our savings so it doesn't delay other plans.

Thanks,
Steve

MEM62

So you are borrowing money to put in your savings? Not the best idea. Just repay your savings at the rate you would have repaid the loan to the bank. Job done!

blenz101

MEM62 wrote: »

So you are borrowing money to put in your savings? Not the best idea. Just repay your savings at the rate you would have repaid the loan to the bank. Job done!

I don't think this is what the OP said at all. They were looking to take additional borrowing for furniture and consolidate.

To the OP, unfortunately it looks like you will be out of luck with your current bank - if they have done a full assessment of your income and outgoings and deemed it unaffordable there is no good reason for them to overturn this decision; it would in fact be irresponsible for them to do this.

If your wife hadn't signed the agreement or had any funds deposited then there is no recourse - any email you have from the bank giving you 'approval' will usually have weasel words to make it non binding until you have at least e-signed the agreement and will always be subject to final checks by the bank in any event right up until the point funds are deposited.

It would be worth you checking there aren't multiple credit searches conducted against your file making it appear you have made multiple applications to any future prospective lender.

Try someone else would be my advice and if it is for furniture and you can actually afford the additional repayments why not just borrow the presumably smaller additional amount and maintain the existing loan - many furniture suppliers will be able to offer 0% finance on their products.

magpiecottage

If you do not like the response to your complaint, you can go to the Financial Ombudsman Service.

Clive_Woody

At the end of the day you can't force someone to lend you money (well not legally anyway) so I don't think that there is an awful lot you can do with your own bank.

You could try elsewhere and some lenders allow a soft search so there is no record on your credit file.

Thrugelmir

Chuffter wrote: »

She did this on-line, submitted the information on their website requested, loan was approved and we e-signed the agreement.

We have a copy of the agreement on our e-mail and it says on our account online that the loan is approved.

I'd be surprised if the system was fully automated. On line applications are normally still subject to, for good reason.

andyfromotley

Hi Chufter,

i imagine your chances of forcing the bank to give you money after you have now failed on affordability is nil.

Try elsewhere or accept that you probably cant afford this loan.

SeanG79

Chuffter wrote: »

Hi,

Got a bit of a strange one, my wife applied for a loan through our bank on-line. We already had a loan with them so was looking for it to be re-financed with an additional amount to buy some furniture that we needed.

She did this on-line, submitted the information on their website requested, loan was approved and we e-signed the agreement.

We have a copy of the agreement on our e-mail and it says on our account online that the loan is approved.

However, when my wife tried to go back into our account to see if the money had gone into our account it kept asking her to sign the agreement again. It kept doing this whenever we logged in, each time we got a new agreement on our e-mail.

She called the bank and asked what the problem was, after speaking to 5 different people who didn't want to know she spoke to someone that said there was an indicator on the account regarding our address that was holding it up. He sorted this and said that if we went back in and did the e-sig again that all would be fine, she confirmed that the loan was okay with the advisor. He said, everything is fine, its just a glitch.

We did what he said, same thing happens, every time we logged in it kept asking for us to sign it.

The next day we called the loans team and explained what happened, they told us the only way around it was to do a new application, She spent an hour and a half on the phone in total. They went into a total income and expenditure (which the website does not bother with) at the end of it all they said that its been declined because they have deemed we cannot afford it. Also that the second application overrules the first which was approved based on less information but because of fair lending they have to go with the second.

We've complained and got the call fees back but they still are refusing to honour the original approved agreement.

So I don't quite know where we stand, If they are fair lending rules, why does the website ask for less info? I have the agreement on e-mail, from my understanding this is a legally binding document and is not being fulfilled by the bank? I don't know if thats right.

So basically, HELP!!?? We've ordered the furniture using our savings so its not the end of the world but would like to put the money back into our savings so it doesn't delay other plans.

Thanks,
Steve

Lenders reserve the right to withdraw without ascribing a reason prior to the loan paying out...