I was denied a loan

craigyjr

hello i rang my bank up lloyds too ask for a loan and i was denied because i am only on government benefits i receive enhanced rate mobility and care on pip and i get couples rate ESA aswell as my girlfriends carers allowance in my bank. i was wanting too consolidate all my debt and have a family holiday but it feels like i've been discriminated against, the guy on the phone said he could see i had more than enough income too cover the loan but he couldnt give me it cause it was on government benefits

DCFC79

craigyjr wrote: »

hello i rang my bank up lloyds too ask for a loan and i was denied because i am only on government benefits i receive enhanced rate mobility and care on pip and i get couples rate ESA aswell as my girlfriends carers allowance in my bank. i was wanting too consolidate all my debt and have a family holiday but it feels like i've been discriminated against, the guy on the phone said he could see i had more than enough income too cover the loan but he couldnt give me it cause it was on government benefits

If you have more than enough to cover a loan surely this amount is saved up, sitting in your bank ?

somethingcorporate

Try another lender?

Use nationwide who do a softsearch without impacting on your credit file.

Borrowing for a holiday is never a good idea, what will you do when you want to go on one next year and you are still paying off the one for this year?

Pixie5740

If there is nothing adverse on your credit file (defaults, missed payments, etc) then you will have been declined on affordability. That's not discrimination that's just risk analysis.

You already have debt and you are looking to borrow the same again and then some to pay for a holiday. If you are already in debt can you really afford to take on more debt?

By all means try and different lender, MSE Loans Eligibility Calculator though.

craigyjr

I have enough income per month too cover the loan repayments if i consolidate all my debts into 1 loan is what i ment, as for the don't borrow to go on holiday 80% of the money if too pay of my credit cards finance agreements and catalogues but as my family have never been away in the last 5 year i thought a little break would be nice, but what i dont understand is because i am a wheelchair user who claims benefits is that a good enough reason for the bank not too give me a loan yet the can give me a overdraft and credit card

craigyjr

The guy on the phone said the reason i cant have the loan is because i am on government benefits he said he could see if i consolidated all my debts and would have more than enough income

andyfromotley

You may well have been discriminated against because you were on benefits. If a company decides not to lend to benefit claimants irrespective of their financial position then they are discriminating against them. However to do so is perfectly lawful. Benefit claimants are not a group protected by legislation.
Now if the same company said we will not len to anyone on disability benefit (or whatever the latest fancy dan term for it is) Then that would be unlawful as disabled people are a protected group under the Disability discrimination act.

Not much you can do about it except try elsewhere. Oh BTW i agree as above, lending to fund a holiday is never a great idea. Just delay the holiday and save for it. It kinda sucks but is definitely the cheaper and safer way to do it.

HappyMJ

craigyjr wrote: »

I have enough income per month too cover the loan repayments if i consolidate all my debts into 1 loan is what i ment, as for the don't borrow to go on holiday 80% of the money if too pay of my credit cards finance agreements and catalogues but as my family have never been away in the last 5 year i thought a little break would be nice, but what i dont understand is because i am a wheelchair user who claims benefits is that a good enough reason for the bank not too give me a loan yet the can give me a overdraft and credit card

craigyjr wrote: »

The guy on the phone said the reason i cant have the loan is because i am on government benefits he said he could see if i consolidated all my debts and would have more than enough income

Computer says NO...

Do you own a house? You could remortgage the house to pay for your holiday. They might say yes if you offer some security they could sell to repay the loan in the event of your default.

Pixie5740

With consolidation loans there's no guarantee that you'll pay your existing debts off with the loans. That's why they are risky for the lenders.

burlington6

You're in debt and want another loan so you can have a family holiday?

Get real

craigyjr

no the main raise for the family holiday was to get the loan with the lower intrest rate why loan £6500 too pay off debt at 17.9% when i could ask for £7500 at 5.9% pay off all debt have holiday and loan is cheaper repayments