Possible scam on credit refusal methinks???

BeltonRose

Hi - Want to buy some swimwear via the internet. If I sign up for their personal account I will qualify for 25% discount. I know I have a perfect credit score - Experian rating 999 - the best you can get. The order is accepted but the goods don't arrive when promised. I chase it up with the company who tell me that my application for a personal account has been declined because of my credit scoring. I ask them what the issue is and they can't tell me - a letter is on its way explaining why. I can however buy the items and pay for them there and then - but they would be a full price of course!!! Do they think I'm stupid? I've checked with Experian, Equifax and Noddle and my credit scoring is perfect with each one. There is absolutely nothing wrong, and therefore no reason to refuse the account. (I was going to pay the amount off in one lump sum anyway, I only wanted it to get 25% off). If their letter doesn't give a cast iron bone fide reason for refusal I will be referring them to the Financial Ombudsman. Anyone else experienced this kind of thing before?

[Deleted User]

Your credit score is meaningless and not seen by lenders.

The only scam is in believing the scores. No one needs to offer you credit if you do not meet their criteria.

BeltonRose

But if your credit check shows your are solvent, don't owe anyone, always pay your bills, are on the electoral roll etc - what criteria ARE they using as the basis for refusal? Its makes no sense to me?

BeltonRose

Plus - if they publish the offer of 25% off linked to a personal account then shouldn't they also publish the stringent criteria you have to meet?

[Deleted User]

Affordability, income, history, financial associates, electoral roll , target market and so on. Lots of things, but never your credit score.

[Deleted User]

BeltonRose wrote: »

Plus - if they publish the offer of 25% off linked to a personal account then shouldn't they also publish the stringent criteria you have to meet?

No. Lending criteria are confidential.

BeltonRose

OK but surely their reason for refusal must be meaningful and set out clearly in their letter to me. If the reason is not meaningful and justifiable then don't I have any comeback on them? Or is this just a free for all system for companies to accept or refuse an application for a personal account on a whim?

[Deleted User]

They won't be specific. Otherwise it would reveal their criteria and potentially encourages 'amended'applicastions.

GingerBob_3

BeltonRose wrote: »

OK but surely their reason for refusal must be meaningful and set out clearly in their letter to me. If the reason is not meaningful and justifiable then don't I have any comeback on them? Or is this just a free for all system for companies to accept or refuse an application for a personal account on a whim?

Yes. The system is 100% geared up to their advantage and to your total disadvantage. They can use just about any technique they like to seduce you into applying. They'll then assault you with a credit check, and if they reject you - regardless of whether this had anything to do with the credit check - they don't have to, and won't, tell you the reason for refusal. Then, if you do open an account, there's every chance that they'll knacker your ability to get real credit by blacklisting you at the CRAs. These companies are best avoided.

Thrugelmir

BeltonRose wrote: »

Or is this just a free for all system for companies to accept or refuse an application for a personal account on a whim?

Companies can do business with who ever they wish.

BeltonRose

From the criteria seen on Experian and the like, plus the criteria suggestions you have made there is absolutely nothing that would cause me to fail a credit check - which therefore smacks to me of a company that refuses a personal account application (with 25% sweetener) so that the customer ends up paying the full price. So, as I said it's a scam to boost profits. I will take them to the FOS if they cannot specifically tell me why my appln was refused. I'm entitled to the information am I not?