Approved!!.... Oh... wait... no your not!

justindublin

Guys Help I am BULLING here! :mad:

Applied over the phone to my bank last week for a motor loan of 15k based on a income of 40k per yer. I was approved instantly over the phone after giving all the details, and the documents were sent out in the post.

So documents arrived on Friday with all the general 'Your Approved, Just Sign to 40 pages attached' kinda rubbish lol So I dashed off to the dealer and put my deposit on the car straight away.

So over the weekend I decided to drop the loan amount slightly after getting the dealers price down another 1000 euro, I wanted to switch to a Fixed rate too. So I called up yesterday, logged the changes, and now today they came back with a REFUSAL! :eek:

Yes I've DROPPED the loan amount, and change the to a fixed rate and suddenly I'm no good anymore.

What can I do? Go to a lending manager in a branch instead? Try use the existing application?

I'm gonna lose my deposit

dotsman

Have you spoken to them?

You are entitled to a reason as to why you are refused (but it may take a few days I think).

Could it be possible that the original loan was never fully cancelled, and thus, when looking at your new application, it thinks that you already have a loan for x amount? You mention you lowered the amount requested and changed to a fixed rate. Did you change anything else (such as the term)?

It could be possible that the bank in question has changed it's lending policy in between the 2 applications. Given today's market, I'd say that is fairly common! There's nothing wrong with it. If the first loan hasn't been cancelled, then you are entitled to go through with it.

Have you tried any other bank?

justindublin

Well I asked for a reason earlier, and the quick answer I got was 'You missed a payment on your previous loan in June'

I checked back over my standing orders using 365 online and according to that I never missed a payment, infact i'd made additional payments to clear it ahead of this application!

Would I have better look with a branch lending officer?

dotsman

Yes, I would definitely chase that up. If they are claiming you missed a payment (and you didn't), this could have far wider implications than the deposit on your car, because that is now on your credit history (so going to another bank likely won't improve things). If it is a mistake, then you could have a case with Joe Meade (Ombudsman).

As to why that didn't register with them when you last applied is a bit baffling!

The problem with Phone banking is that it's great for convenience etc and 99% of the time, works perfectly, but when there is something wrong, the operator on the phone is unlikely to have the ability/authority to investigate.

stepbar

Deary dear....

Few points -

justindublin wrote: »

Guys Help I am BULLING here! :mad:

Applied over the phone to my bank last week for a motor loan of 15k based on a income of 40k per yer. I was approved instantly over the phone after giving all the details, and the documents were sent out in the post.

So documents arrived on Friday with all the general 'Your Approved, Just Sign to 40 pages attached' kinda rubbish lol So I dashed off to the dealer and put my deposit on the car straight away.

So over the weekend I decided to drop the loan amount slightly after getting the dealers price down another 1000 euro, I wanted to switch to a Fixed rate too. So I called up yesterday, logged the changes, and now today they came back with a REFUSAL! :eek:

Yes I've DROPPED the loan amount, and change the to a fixed rate and suddenly I'm no good anymore.

What can I do? Go to a lending manager in a branch instead? Try use the existing application?

I'm gonna lose my deposit

Not being smart you should have taken the loan you were approved for and have repayed the 1k back afterwards. You were lucky to get approved in the first place with the way lending has gone.

dotsman wrote: »

Have you spoken to them?

You are entitled to a reason as to why you are refused (but it may take a few days I think).

Could it be possible that the original loan was never fully cancelled, and thus, when looking at your new application, it thinks that you already have a loan for x amount? You mention you lowered the amount requested and changed to a fixed rate. Did you change anything else (such as the term)?

It could be possible that the bank in question has changed it's lending policy in between the 2 applications. Given today's market, I'd say that is fairly common! There's nothing wrong with it. If the first loan hasn't been cancelled, then you are entitled to go through with it.

Have you tried any other bank?

The bank is not obliged to give a reason for refusal at all. In terms of lending policy, I can safely say that BOI have not changed it in the past month. As you have said there may have been other changes which would have prompted the system to refer the application to the Underwriters.

justindublin wrote: »

Well I asked for a reason earlier, and the quick answer I got was 'You missed a payment on your previous loan in June'

I checked back over my standing orders using 365 online and according to that I never missed a payment, infact i'd made additional payments to clear it ahead of this application!

Would I have better look with a branch lending officer?

Get your branch to appeal the application asap. Ask to speak with the sales manager and explaing the suitation.

dotsman wrote: »

Yes, I would definitely chase that up. If they are claiming you missed a payment (and you didn't), this could have far wider implications than the deposit on your car, because that is now on your credit history (so going to another bank likely won't improve things). If it is a mistake, then you could have a case with Joe Meade (Ombudsman).

As to why that didn't register with them when you last applied is a bit baffling!

The problem with Phone banking is that it's great for convenience etc and 99% of the time, works perfectly, but when there is something wrong, the operator on the phone is unlikely to have the ability/authority to investigate.

Your credit rating will not be seriously affected unless you miss 3 consecutive repayments. However it "may" appear as a missed repayment and as such the Underwriter will make the call having seen the ICB report. Missing one repayment is not as serious as missing 3 consecutative repayments as technically you would be in default by that stage. It would be up to the bank to persue the matter. That being said if you missed a few payments here and there over the life of the loan it wouldn't be great and could be the reason for refusal. In my experience, I haven't seen any people being refused another loan because of missing one repayment on the existing one.

justindublin

Well after 30minutes on the phone to various departments, I found out the reason I got refused.

€61 arrears from a missed car loan payment in January 2007
This was because I was involved in a fairly serious accident, and was in hospital for a couple of weeks for surgery and stuff. I remember trying to avail of my payment protection but I didn’t ‘qualify’ to use it apparently. By the time I was back in work I had no idea about the missed payment.

The annoying part is during this year I made a €500 additional payment off my loan... or so I thought. It was accidently paid off my MasterCard instead! :eek:

I’m a little annoyed that during my dozen trips to the bank over the 18 months this has never been brought to my attention. During my several calls to 365Phone this has never been mentioned to me either! If I’d known I’d have paid it off LONG ago.

Kafer

The country is fupped :rolleyes:

dotsman

stepbar wrote: »

The bank is not obliged to give a reason for refusal at all. In terms of lending policy, I can safely say that BOI have not changed it in the past month. As you have said there may have been other changes which would have prompted the system to refer the application to the Underwriters.

Apologies, you're right. You're not legally entitled to a reason, however, upon asking you will often be furnished with a reason (and this is what happened in the OP's case).

You are, however legally entitled to ask the institution (within 28 days of the refusal) to disclose what credit checks they performed (ie ICB).

stepbar wrote: »

Your credit rating will not be seriously affected unless you miss 3 consecutive repayments. However it "may" appear as a missed repayment and as such the Underwriter will make the call having seen the ICB report. Missing one repayment is not as serious as missing 3 consecutative repayments as technically you would be in default by that stage. It would be up to the bank to persue the matter. That being said if you missed a few payments here and there over the life of the loan it wouldn't be great and could be the reason for refusal. In my experience, I haven't seen any people being refused another loan because of missing one repayment on the existing one.

In today's climate, even 1 is enough (again, as was proved in the OP's case). Bank's are still open for business, but only to the safest of customers.

justindublin wrote: »

Well after 30minutes on the phone to various departments, I found out the reason I got refused.

€61 arrears from a missed car loan payment in January 2007
This was because I was involved in a fairly serious accident, and was in hospital for a couple of weeks for surgery and stuff. I remember trying to avail of my payment protection but I didn’t ‘qualify’ to use it apparently. By the time I was back in work I had no idea about the missed payment.

The annoying part is during this year I made a €500 additional payment off my loan... or so I thought. It was accidently paid off my MasterCard instead! :eek:

I’m a little annoyed that during my dozen trips to the bank over the 18 months this has never been brought to my attention. During my several calls to 365Phone this has never been mentioned to me either! If I’d known I’d have paid it off LONG ago.

I know it sounds cruel, but a Bank assumes that you manage your own finances. Did you not notice the missing repayment on your online banking / statements?

They will only contact you if it feels you're not repaying anything (this will be decided based on a complex set of rules regarding your history, amount missed, balance outstanding etc and changes from time to time). The fact that your following repayments went through, the Bank obviously felt that they didn't need to worry about you.

kaiser sauze

stepbar wrote: »

The bank is not obliged to give a reason for refusal at all.

Wrong.

If you write to the bank you are dealing with and request a reason, they must supply one, and within a specified timeframe.

It is amazing how many industry, and former industry, workers are unfamiliar with this.

dotsman

kaiser sauze wrote: »

Wrong.

If you write to the bank you are dealing with and request a reason, they must supply one, and within a specified timeframe.

It is amazing how many industry, and former industry, workers are unfamiliar with this.

Can you link to somewhere that says this?

I thought so as well, until Stepbar pointed it out. But after looking it up (IBI QFA Books), it does say that a bank does not have to give a reason, just disclose where they got all (if any) their information from (ie ICB). However, as I have since mentioned, and as was in the OP's case, often the bank still will give a reason (as it's good customer service!).

stepbar

kaiser sauze wrote: »

Wrong.

If you write to the bank you are dealing with and request a reason, they must supply one, and within a specified timeframe.

It is amazing how many industry, and former industry, workers are unfamiliar with this.

I'll refer you to the OFA Loan module. Come back to me when you get an answer.....

kaiser sauze

stepbar wrote: »

I'll refer you to the OFA Loan module. Come back to me when you get an answer.....

You must have been absent when the requirement was being discussed.

BuffyBot

Take it to PM folks..

pretty-in-pink

If you are in arrears with a loan already with the bank, they will not contact you straight away,but they will refuse to give you more money until the arrears are cleared. Ask for an account statement for the loan you are repaying and set up a meeting with a branch manager if needs be