Loan turned down

gibgob

We have just applied to increase a Tesco loan to pay for a new car. Our current loan has been running for 5 years (out of 10), with no missed payments and some extra payments. It had 3 years left to run. We asked to borrow £8000 over 5 years which initially was agreed. However, following a credit check it was turned down. They advised us to check with Experian. Having done that we have discovered an unpaid payment to talk mobile of £12 is recorded with them. We were the named bill payers for our sons mobile, and this appears to come from that account. Despite the fact that the account was changed to our sons name, and he is adamant that his account was closed with no outstanding payments, and we have never received any info about a missed payment, this is the only record of anything on the report that is negative. What can we do, if anything, to get this removed? And Tesco say we can’t reapply for any added loan for 3 months, which seems rich when we have regularly paid both the required payment and agreed extra payments. Thanks for any help.

[Deleted User]

If you believe that the marker is erroneous, then dispute it with T-mobile and the CRAs. Remember to check all three.

If it's wrong, it will be removed. However, accounts generally cannot be transferred to someone else. The old one needs to be closed and a new one opened.

gibgob wrote: »

And Tesco say we can’t reapply for any added loan for 3 months, which seems rich when we have regularly paid both the required payment and agreed extra payments.

It's neither rich nor poor. It's a standard exclusion. Previous borrowing doesn't come into it. But there are other lenders out there.

MEM62

gibgob wrote: »

Despite the fact that the account was changed to our sons name

No it wasn't. You cannot transfer an account is your name to someone else. The process would be for your to close the account and you son open up a new one in his name.

shortcrust

gibgob wrote: »

We have just applied to increase a Tesco loan to pay for a new car. Our current loan has been running for 5 years (out of 10), with no missed payments and some extra payments. It had 3 years left to run. We asked to borrow £8000 over 5 years which initially was agreed. However, following a credit check it was turned down. They advised us to check with Experian. Having done that we have discovered an unpaid payment to talk mobile of £12 is recorded with them. We were the named bill payers for our sons mobile, and this appears to come from that account. Despite the fact that the account was changed to our sons name, and he is adamant that his account was closed with no outstanding payments, and we have never received any info about a missed payment, this is the only record of anything on the report that is negative. What can we do, if anything, to get this removed? And Tesco say we can’t reapply for any added loan for 3 months, which seems rich when we have regularly paid both the required payment and agreed extra payments. Thanks for any help.

I hope you've taken that with the appropriate amount of salt. If there's one lesson you learn by hanging around here it's that family members frequently lie through their teeth about stuff like this.

macman

You weren't the 'named bill payers' for your son. you were the account holders. The DD can be on anyone's account, Talk Mobile doesn't care who. But you are liable if it defaults because it's your account, not your son's. The account he later closed was his own, and any payments overdue on that account would go onto his credit history, not yours.
So I don't think the son has lied at all.

gibgob

We have now found all the bill payments for both the account that was in our name, which our son closed at the end of the contract, and then the account in our sons name. There are no missed payments. And absolutely no communication when he closed one account to state that money was owed, nor any further requests for money. Clearly we have to speak to the phone company, but we also want to clear the record on the credit record. There is only that one point on the credit report that suggests any reason for our loan to be refused.

mcpitman

gibgob wrote: »

We have now found all the bill payments for both the account that was in our name, which our son closed at the end of the contract, and then the account in our sons name. There are no missed payments. And absolutely no communication when he closed one account to state that money was owed, nor any further requests for money. Clearly we have to speak to the phone company, but we also want to clear the record on the credit record. There is only that one point on the credit report that suggests any reason for our loan to be refused.

There could be more reasons than just a singular missed/late payment. For example income to debt ratios, general affordability calculations etc.


What are your earnings, other debts, mortgage commitments etc?

macman

How could your son close the account that was in your name, unless he could pass security and TM had your authorisation for him to act on the account?
The contract does not end, it continues after the end of the minimum term until you give 30 days notice. So could it be that your son did not realise this and cancelled the contract , and then the DD, before the final payment was taken?