Rejected based solely on a bank's error with my address - avenues for recourse?

windswept_melon

I recently had a Santander 123 application rejected because, according to the branch staff, their IT system said there was no trace of me at my present address (they said it was definitely not for any other reason, such as my credit rating or their business priorities). I am on the electoral roll, and I have provided far more than sufficient proof of address (according to the branch staff) for them to send on in support of my application.

However, the same issue arose even after the branch staff forwarded the further proof of address from me; the people in the branch can see I clearly have sufficient evidence, but they are being overruled somewhere. They seem to think there is nothing they can do, but I found the following in the "Credit Scores" article on this site that; assuming this is a National Hunter or similar problem:

Lenders can then check the info, and either ignore it, or do further checks. They're not allowed to reject you based on the National Hunter red flag alone.

That was from the article "Credit Scores" under the "Loans" section of this site, but as a new user I am (understandably) prevented from posting a link to it. It's under the section on National Hunter, but you have to use the "Find out more about how National Hunter works..." link to see it. (Of course I don't know for sure if that's what the cause was; it could be something else, but I've checked my credit file with the agency they say they use, and all seems well there.)

If this is true, I intend to write to the head office to make a formal complaint, but I cannot find any legislation that backs up the above statement (which is made on this site). Does anyone know of where I can find the underlying law/code?

Further, when they wrote to me to reject my application, they (1) did not state the main reason for the rejection (but I know from the staff it was only relating to my address) and (2) they didn't explain that I could appeal the decision (particularly because it was relating only to my address). My understanding is that this contravenes the Lending Code, which is voluntary but to which they are a signatory. So I would be asking them to fix their rejection letters, when I complain, too.

At this point, the most important thing to me is to find out the root cause of the problem, so that hopefully this won't happen again in future; that's why I'm pursuing it.

Thank you for any advice/pointers you may be able to give on the underlying legislation or voluntary practices.

grumbler

windswept_melon wrote: »

...I found the following in the "Credit Scores" article on this site that; assuming this is a National Hunter or similar problem:

Lenders can then check the info, and either ignore it, or do further checks. They're not allowed to reject you based on the National Hunter red flag alone.

I think this is a very misleading statement. Any bank/lender can reject you without any formal grounds whatsoever. Some banks are known to be more 'choosy' than others. Even if National Hunter is the the only real reason, it would be impossible to prove this.

So, IMO, you have nothing to complain about, but nothing stops you from appealing with some supporting information/facts/documents: Your application and credit scoring - Santander

jonesMUFCforever

Check if you have a CIFAS marker on your account.

societys_child

If this is true, I intend to write to the head office to make a formal complaint, but I cannot find any legislation that backs up the above statement (which is made on this site). Does anyone know of where I can find the underlying law/code?

They are a business, they decide who they wish to do business with.

Further, when they wrote to me to reject my application, they (1) did not state the main reason for the rejection

Banks don't have to give a reason, much the same as you don't have to give a reason if you reject their offers of deals on accounts, credit cards, loans etc . . .

windswept_melon

Thank you for the replies. It seems that there's not much I can do, but it is worth at least writing to ask where this error with my address is -- it's totally unreasonable that a mistake in a computer somewhere can make these decisions, and there's no recourse for me to at least identify and have the mistake corrected, so it's probably still worth a shot in writing to them, just in case it helps.

I did read the lending code [ I'd post the link, but the forum software understandably won't let me as I'm a new user ] and it says that banks should at least explain the main reason behind a rejection, though the letter I received did not do this, so at the very least I would hope that a constructive complaint might cause them to comply with the lending code for future prospective customers.

Once again, thank you for your replies. If this doesn't get me anywhere I'll check out the CIFAS records too (might do that in parallel, actually).

jonesMUFCforever

By opening (or not) an account for you -they are not lending money to you so the lending code is of no use to you here.
Even if it did I bet they would use the word ''affordability'' which covers their backsides.

premierfella

I had a friend in what sounds like a similar situation with Santander.

Your only option is to do what he did and put that all in writing (as politely and factually as you can manage).

Ultimately whether they accept or reject you is their call unless illegal (eg gender, race, etc), even if the reason for rejection is that their systems are poor.

meer53

The "main" reason for your rejection is that you don't meet their criteria. They don't have to give you their criteria so i'd just forget it and move on.

I really don't think anyone in a branch would be able to confirm that it was rejected because of your address.

System

Sounds like they simply don't want your custom.
Look elsewhere...

TheBanker

windswept_melon wrote: »

I recently had a Santander 123 application rejected because, according to the branch staff, their IT system said there was no trace of me at my present address (they said it was definitely not for any other reason, such as my credit rating or their business priorities). I am on the electoral roll, and I have provided far more than sufficient proof of address (according to the branch staff) for them to send on in support of my application.

I will be honest here - the branch staff wouldn't know why you were rejected. I think they are making assumptions.

When you checked your credit file, did it show that you were on the Electoral Roll? It is not completely unknown for the council to make errors, but the bank check against what's recorded at the Credit Reference Agency.

neilsedaka

If the problem is your address on the electoral roll not exactly matching the address that you gave Santander, you should first of all contact your district council to see if they can amend the address on their records to the address that you usually use. If they refuse, contact the credit reference agency that Santander use to discuss the problem.

This happened to me several years ago. The credit reference agency now hold both versions of my address which solved the issue.