If a bank rejects you for finance, do they have to tell you why?

Shayper

Shayper

Shayper

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Hi guys.

As per title really. If a bank were to reject you for finance, such as a loan, would they be under obligation to tell you exactly why?

A friend tried to get a MacBook Air on finance (Apple use Barclays), planning to pay off the balance in full in a couple of months. He was provisionally accepted last night, however I just got a call from him stating that it was now declined, with no information as to why and no contact details other than an address to write to.

So, do the banks have to tell you why they reject you for finance, and do you have to ask them in writing? It can't be the case in this age of communication that you have to write to a bank to get this information?

Thanks :)
 
it's their private business decision. I can't see why they should have to explain it. You can get your credit score from other sources...
 
not total sure , but i think the only way you can get any idea when is by paying to see your credit history / score.

if i'm not mistaken experian still do a free months trial .. you can use that .. although it still doesnt give you a full breakdown
 
Amleto said:
it's their private business decision. I can't see why they should have to explain it. You can get your credit score from other sources...
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But surely, as it's in regard to your personal details they should have to tell you why? And the only other source to get your credit score seems to be Experian, which you have to pay for.

TALON1973 said:
not total sure , but i think the only way you can get any idea when is by paying to see your credit history / score.

if i'm not mistaken experian still do a free months trial .. you can use that .. although it still doesnt give you a full breakdown
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So you have to pay for information that you should be able to find in the first place, and you don't even get a full breakdown? That's ridiculous!

Musty Pie said:
I dont think they are under any obligation to tell you why, unless things have changed.
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Why?



I think this stance is a bit ridiculous. As I've said, why should you have to pay for information that you should be able to have in the first place?
 
No is the simple answer. Your friend was referred when he did not meet the acceptance criteria of the automated on-line application process and was subsequently refused when someone looked at the risk inherent in loaning him the money.

Their loan criteria are for them alone to decide and they are under no obligation to give you a detailed reason for the refusal, it is enough that they simply think you are too much risk.
 
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Shayper said:
But surely, as it's in regard to your personal details they should have to tell you why? And the only other source to get your credit score seems to be Experian, which you have to pay for.
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It is not your personal details however...it is the lenders loan criteria that you are asking for, you already know what details you gave them and you can access a credit report yourself, it is not up to the lender to furnish this information.

Shayper said:
So you have to pay for information that you should be able to find in the first place, and you don't even get a full breakdown? That's ridiculous!
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You should know the information yourself anyway.....and you can get it for free from Noddle if you want.....but again, it is not the lender that is responsible for your credit position, you are.



Shayper said:
Why?

I think this stance is a bit ridiculous. As I've said, why should you have to pay for information that you should be able to have in the first place?
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Why should a lender be responsible for your credit position or for furnishing you with their criteria for acceptance. As for credit reference agencies, again it is your responsibility, no-one elses.
 
PureAppleJuice said:
You can get a statutory credit report for ~£1.00 from the credit agencies. That might be of help.
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Could you tell me how please? I'll pass the details on to my mate pronto :)

Castiel said:
No is the simple answer. Your friend was referred when he did not meet the acceptance criteria of the automated on-line application process and was subsequently refused when someone looked at the risk inherent in loaning his the money.

Their loan criteria are for them alone to decide and they are under no obligation to give you a detailed reason for the refusal, it is enough that they simply think you are too much risk.
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Thanks for the information. I don't quite understand why they can not tell you why they've refused, as wouldn't that come under the Freedom of Information Act?

Neither of us are sure on this, as we haven't had any experience of this.
 
Shayper said:
I think this stance is a bit ridiculous. As I've said, why should you have to pay for information that you should be able to have in the first place?
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well technically if the information is correct you already know what it is.. since its about you...

you could spend a few months looking at you bank statements and payment history to try and work out what the issue is.. or pay £1 (i know which I would do)
 
Castiel said:
It is not your personal details however...it is the lenders loan criteria that you are asking for, you already know what details you gave them and you can access a credit report yourself, it is not up to the lender to furnish this information.
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Thinking of it from that perspective, I can sort of understand.

You should know the information yourself anyway.....and you can get it for free from Noddle if you want.....but again, it is not the lender that is responsible for your credit position, you are.
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I wasn't saying the lender was responsible for the credit rating, I was just asking if there was a way to find out why they had declined a loan, which you've answered, thanks :). And what's Noddle?

Why should a lender be responsible for your credit position or for furnishing you with their criteria for acceptance. As for credit reference agencies, again it is your responsibility, no-one elses.
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I wasn't saying it was anyone's responsibility but his in this case at all, or imply that. I was just asking if you could find out why you were rejected for finance.
 
edscdk said:
well technically if the information is correct you already know what it is.. since its about you...

you could spend a few months looking at you bank statements and payment history to try and work out what the issue is.. or pay £1 (i know which I would do)
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I don't know any of the information, as I said, it's a friend who was asking, this is just a pool of information, so I thought it's a good place to ask :)

p1RATE said:
if you do call them they probably will say why, however they dont have to so be nice :P
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Fair enough :)

[TW]Fox;22418147 said:
Why pay a quid. Get it for free from noddle.co.uk.
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Thankyou, I've just texted him the website.

Cheers for your help everyone :)
 
Shayper said:
Thanks for the information. I don't quite understand why they can not tell you why they've refused, as wouldn't that come under the Freedom of Information Act?

Neither of us are sure on this, as we haven't had any experience of this.
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It has nothing to do with the FOI, basically because their lending criteria for refusal is not about you personally (it will apply to anyone.) and more importantly it is unlikely that a credit lender such as a bank is going to be a Public Sector Body, FOI doesn't apply to the private sector....anyway, the only thing that affects you is that your personal circumstances did not meet their lending criteria, and the only obligation they have is to say that you were refused because you do not fit their risk assessment....you could possibly write to them for an expansion of that, but it is unlikely that they will give you their lending criteria information, they might say that you already have too many liabilities, but I doubt you would get anything definitive from them.

You can try other lenders, as they all have different criteria, but be aware that each application (whether successful or not) shows on your credit report and if a lender see several attempts at credit in a very short period, it will negatively impact your rating.
 
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They generally don't disclose the reasons. You can request all the information they hold on you under the Data Protection Act. However that will only cover specific commentary written in any files they hold on you and in this instance that is unlikely to include any rationale for the decision. As others have said your friend will have fallen outside of their policy (it may not be credit related) and that will only manifest itself as a reject decision in any files they hold on him.

If it had been an application for something more material (a very large loan) resulting in an individual actually having to write something about your friend that would be different. For something like a finance package on a laptop there is very little chance of that. Unfortunately its most likely just a case of 'computer says no'.
 
Shayper said:
I don't quite understand why they can not tell you why they've refused, as wouldn't that come under the Freedom of Information Act?
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Based on the information you've provided I've decided you eat Cheerios.
I don't have to tell you why though because I'm not storing any information about you that you don't already know to work it out...

(but if you really must know it's because you used the word ridiculous twice in one post.. that makes about as much sense as some lending criteria..)
 
Credit is not a right. If the lender doesnt think you're a worthy risk, they don't have to lend. Therefore your friend should save & buy it when they actually have the funds.
 
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