Good standing car loan sold to Asset Link Capital - mortgage declined by underwriter

ScotKit

Hey there.  My partner - great credit rating, no issues, steady professional job - has a small car loan that randomly we were advised back in June had been sold by the original lender and would transfer to a company called Asset Link Capital.

Didn't think anything of it, no worries, and just kept on paying as normal.

Fast forward 4 months from that and we have just had our mortgage offer declined at a late stage with the rationale being that they believe we have a debt mgt plan we have not disclosed as we have a loan with Asset Link Capital.  

We did disclose the loan. They just think this is a new one - which it isn't.  

We have all the paperwork to prove that this is not a new loan, and the credit files & payment history to show the account is and has always been in good standing. When we have phoned Asset Link Capital to get their input they have been great, and said they will send us a letter immediately to validate that this loan is not associated with the debt mgt side of their business in any way and was acquired as part of a good loan portfolio.

They also said that the issue we have just had is one that a number of other customers have also had recently and so they have a process to deal with mortgage lenders on this, including the offer of a direct contact with our approval to talk to the underwriter.

I am kinda furious about this TBH - I am feeling like we have been treated unfairly and put to detriment through absolutely no fault of our own.

Has anyone any experience of this situation and any view on our prospect of gaining a positive outcome in terms of overturning the decision?

Kiwistrawb1990

Who's the lender? 

ScotKit

Kiwistrawb1990 said:

Who's the lender? 

TSB

Thrugelmir

You should have received a letter explaining the situation when the debt was sold on. This could have been provided to the TSB. 

This is just an unintended consequence of Covid and lenders selling off their loan books. Default levels on car finance is going to be high. Asset Link Capital specialise in such matters, i.e. running down closed portfolios.  

ACG

This is one of my pet hates with lenders, thay make assumptions rather than picking up the phone. 

Call up TSB and ask if you get a letter confirming they bought the debt to manage it down rather than because it was in arrears, would this allow them to then offer the mortgage. 

ScotKit

ACG said:

This is one of my pet hates with lenders, thay make assumptions rather than picking up the phone. 

Call up TSB and ask if you get a letter confirming they bought the debt to manage it down rather than because it was in arrears, would this allow them to then offer the mortgage. 

sadly yes we did this, and the response was 'ok you can submit an appeal', but the SLA is 30 days.  Awful