Rejected for loan with same bank on much better terms

MoodyBlue_2

Hi all

I suspect there's nowhere I can go with this but would appreciate your thoughts...

I'm 2 years into a 7 year loan with NatWest, the loan was taken with a relatively high APR.

Last time I was in the branch the clerk said that they could give me a much better offer so I asked them to call back and see what could be done.

The loan specialist called and basically offered terms whereby I would pay £60 less per month for the loan and it would be cleared one year earlier. No additional borrowing was involved although I do understand that this is classified as a 'new' loan.

Anyway, the application was rejected due to their credit scoring system and I'm now pretty miffed that they say I'll be unable to make the payments, despite the fact that I've been a customer for over 20 years, never missed a payment on any previous loan and obviously I would be paying much less per month.

Is there anywhere I can go with this?

I've just had a quit chat with the FOS to see if they have any guidance and they can't do anything until I've raised a formal complaint with the bank.

As it's the bank's prerogative how they accept or decline applications, I suspect there's little or nothing that can be done, but would appreciate any thoughts here.

Thanks in advance
MB

[Deleted User]

No - it's their money, so their decision.

Money_Rollercoaster

I would call the Natwest loans people and request a settlement figure.


I would then have a look at other loans and see what difference moving the loan would make using the various loan calculators - limit the loan length to what's left on your existing loan and perhaps experiment with reducing the loan term.


You might then try the soft search / eligibility checkers (MSE main site) to see whether there are providers that look to be a good bet and which have the potential to save you a reasonable chunk of money.


After that, you might post back outlining your options against your existing loan. Don't apply for anything in haste though.


If it's any consolation, I've banked with Natwest for years and have a solid credit history and the rates they've offered have always been pretty rubbish.

ReadingTim

MoodyBlue wrote: »

Anyway, the application was rejected due to their credit scoring system and I'm now pretty miffed that they say I'll be unable to make the payments, despite the fact that I've been a customer for over 20 years, never missed a payment on any previous loan and obviously I would be paying much less per month.

The cynic in me suggests it's not a rational explanation based your credit history which caused the rejection but a commercial decision based on the fact that you're an existing customer - you're being punished for loyalty, just the same as insurers etc do.

However, in terms of redress, sorry, no chance - it's their money, and they decide who to lend it to, and at what rate. You can only vote with your feet, so as another poster suggested, so a soft search to see if you can get a better rate, then can NatWest for a settlement figure. They might then cave if they think they'll lose you as a customer, but don't bank on it - they have no loyalty to you as a customer, so don't give them any back!

27cool

What is in it for them if they offer you a new loan at a lower interest rate. Nothing!

Second_Account

You also need to consider that they have given you a higher APR to start with because they have deemed you are a higher risk to lend money to.


So if they give people in your risk bank a loan with a lower APR they will be making a loss overall for that risk band due the % of people who wont repay the loan in full based on historical data.

MoodyBlue_2

27cool wrote: »

What is in it for them if they offer you a new loan at a lower interest rate. Nothing!

That's exactly it.... the annoying thing is that the offered it and then said no. Wouldn't have been such an issue otherwise.

iolanthe07

Probably the fairly low grade branch clerk was trying to be friendly and helpful, without having a clue about the bank's lending criteria

MoodyBlue_2

iolanthe07 wrote: »

Probably the fairly low grade branch clerk was trying to be friendly and helpful, without having a clue about the bank's lending criteria

Yes, quite possibly, although I'm assuming there was some kind of 'pop-up' prompt when they accessed my account... then had a call from loans person with details of the deal. You would hope at least one of their systems would've flagged prior to this.

As has already been posted, there's nothing in it for the bank other than a loss of profit, just frustrating that offered and then taken away.

Thanks
MB

foxy-stoat

MoodyBlue wrote: »

That's exactly it.... the annoying thing is that the offered it and then said no. Wouldn't have been such an issue otherwise.

Maybe should of asked for additional borrowing, then made a lump sum payment a month or two later.

You are never going to get a good rate for debt consolidation, but I assume the loan offer was subject to complete application.

Try and overpay as much as you can to reduce the term.

cooltt

MoodyBlue wrote: »

Hi all

I suspect there's nowhere I can go with this but would appreciate your thoughts...

I'm 2 years into a 7 year loan with NatWest, the loan was taken with a relatively high APR.

Last time I was in the branch the clerk said that they could give me a much better offer so I asked them to call back and see what could be done.

The loan specialist called and basically offered terms whereby I would pay £60 less per month for the loan and it would be cleared one year earlier. No additional borrowing was involved although I do understand that this is classified as a 'new' loan.

Anyway, the application was rejected due to their credit scoring system and I'm now pretty miffed that they say I'll be unable to make the payments, despite the fact that I've been a customer for over 20 years, never missed a payment on any previous loan and obviously I would be paying much less per month.

Is there anywhere I can go with this?

I've just had a quit chat with the FOS to see if they have any guidance and they can't do anything until I've raised a formal complaint with the bank.

As it's the bank's prerogative how they accept or decline applications, I suspect there's little or nothing that can be done, but would appreciate any thoughts here.

Thanks in advance
MB

All banks and money lenders are lying, corrupt, filth who make the rules but certainly don't play by them. Once everyone gets this into their little marketing brainwashed skulls, you can then play them at their own game.

Here's a brief explanation of what they've done to you, anyone that disputes it is living in la la land.

"Loyal customer has a very lucrative loan with us and because he's never missed a payment and is a good little boy, he may see the light and realise he can re-finance his loan elsewhere and save shed loads of money, We can't have that now can we"!

"So lets roll out Plan A, feed him some nonsense about re-jigging the loan to save money (you know real casual like, in passing conversion so he doesn't get suspicious) then, when we turn him down and stick a dirty big credit search on his file that's game set and match to us". (hahaha evil laugh).

They've done you up like a kipper.

I say this to everyone, learn the rules before you play, question everything!

p.s. Also, no it's not their money, they don't have any to lend it's all plucked from thin air, numbers on a screen. It's the biggest lie that's ever been sold but that's another story.