refused a loan from halifax

channelsurfer

i applied for a personal loan from halifax to consolidate others loans with the credit union etc. the amount was small around 4k but they refused it. I asked for an explanation and they said they dont divulge their lending policy or criteria.
anyone know if i have any option to get the decision from them and the reason??

kaiser sauze

channelsurfer wrote: »

i applied for a personal loan from halifax to consolidate others loans with the credit union etc. the amount was small around 4k but they refused it. I asked for an explanation and they said they dont divulge their lending policy or criteria.
anyone know if i have any option to get the decision from them and the reason??

If you write to them and request a reason, they must supply you with one.

The banks always give you this line in the hope that you drop the matter at this stage.

Is your credit history sound?

DJDC

Think about it..you asking for more debt to pay back debt. The days of easy money are over. What your employment situation?

channelsurfer

permanent employee for over 4 years. it wasnt asking for an increase in the loan mearly a consolidation of the other loans into one. funny enough the bank of ireland were much more helpful and have processed it. (awaiting final outcome)...I take your point though.

eth0_

Yeah but saying you want to consolidate debts rings alarm bells with banks because it means you may not be very good with money and will possibly want to consolidate the Halifax loan at a late stage too.

Halifax seem to have very very strict rules for giving out loans or credit cards..I applied for a credit card with them last year, I had two other credit cards at the time with low balances, have had several loans in the past which were all paid off on full, bought things on interest free credit in the past etc....and they turned me down.
I got a copy of my credit rating and it was perfectly fine so I can't imagine why they said no to me.

KillerShamrock

kaiser sauze wrote: »

If you write to them and request a reason, they must supply you with one.

The banks always give you this line in the hope that you drop the matter at this stage.

Is your credit history sound?

They dont have too, its in the terms and conditions of every application from account opening to loans and laser cards.
I would say its because of the other loans banks dont like to take on other banks debt. This was the case even before this downturn.

dotsman

kaiser sauze wrote: »

If you write to them and request a reason, they must supply you with one.

The banks always give you this line in the hope that you drop the matter at this stage.

Is your credit history sound?

Incorrect on both counts.

You can ask if the ICB (or any other source) provided information that influenced the decision. But that is all.

As for why they may have refused? By far, the critical point in lending is the ability to repay. Are you in full time employment? Are you servicing any other debts? Is your current account(s) with Halifax, and if so, have you operated that account(s) correctly in the past? Have you checked your ICB record?

As for what to do now, you mention that you have dealings with the credit union. Can you consolidate all these loans into 1 for you?

With regards to consolidation of loans. This service was championed by the sub-prime market and was based n the principle of "borrowing from Peter to pay Paul (which Peter charges you through the roof for!)". The fact that you have so many debts (albeit small) would scare a lot of lenders in today's market. Why are you looking to consolidate your loans? Have any of them fallen into arrears, or are you struggling to maintain repayments?

channelsurfer

i just thought it would be handy to have 3 loans made into 1. the credit union freezes your savings as guarantee for your loan so i wanted to take the halifax loan to unfreeze the credit union savings.(but not withdraw them) not falling behind on payments or have ever. its probably like you said where they dont want to take on debt of another lender. current account is with BOI. thanks for all the info.

kaiser sauze

Richie6904 wrote: »

They dont have too, its in the terms and conditions of every application from account opening to loans and laser cards.
I would say its because of the other loans banks dont like to take on other banks debt. This was the case even before this downturn.

dotsman wrote: »

Incorrect on both counts.

You can ask if the ICB (or any other source) provided information that influenced the decision. But that is all.

*shakes head ruefully*

OP, if you really want an explanation, write to your bank and you will get a response.

It is shameful that bank shills are prevalent on the boards trying to prevent a bit of paperwork.

stepbar

kaiser sauze wrote: »

*shakes head ruefully*

OP, if you really want an explanation, write to your bank and you will get a response.

It is shameful that bank shills are prevalent on the boards trying to prevent a bit of paperwork.

I asked you a number of months ago to provide the proof. I'll happily eat my hat if you can come up with the evidence.

dotsman

kaiser sauze wrote: »

*shakes head ruefully*

OP, if you really want an explanation, write to your bank and you will get a response.

It is shameful that bank shills are prevalent on the boards trying to prevent a bit of paperwork.

Before intentionally trying to mislead posters, I suggest you read the Consumer Credit Act, 1995.

Or, if you can't understand that, perhaps in plain English, you may wish to try here

To quote (word-for-word) from the IBI QFA (Dip) Loans:

QFA Loans Section 7.9.13 - Refusal Of Credit wrote:

"Where an institution refuses to provide credit to an individual, the individual is entitled to ask the institution (within 28 days of the refusal) to disclose to him or her '...the name and address of any person from whom he sought information concerning the financial standing of the consumer who gave information which influenced the refusal.'

As outlined earlier for housing loans, the principle source of information on borrowers used by lending institutions is the Irish Credit Bureau."

Fixed your post for you by the way...:rolleyes:

kaiser sauze wrote: »

It is shameful that trolls are prevalent on the boards trying to intentionally mislead people.

kaiser sauze

stepbar wrote: »

I asked you a number of months ago to provide the proof. I'll happily eat my hat if you can come up with the evidence.

I hope you have a hat handy, as Dotsman has explained it well. I wasn't certain whether it was 14 or 28 days that they must reply to you, but that is also clear now.

dotsman wrote: »

Before intentionally trying to mislead posters, I suggest you read the Consumer Credit Act, 1995.

Or, if you can't understand that, perhaps in plain English, you may wish to try here

To quote (word-for-word) from the IBI QFA (Dip) Loans:

So you admit that you can write to the institution and ask for a reason behind their decision?

Thanks; a hat-tip to you, because I was not going to root out the info for anyone who should know these things already.

stepbar

I found something similar today on my banks internal procedures intranet and was going to post it.

No bank discusses their credit criteria with the wider public. Christ the staff that submit the loans can (on some occasions) be as much in the dark. There's a clear difference between divulging the source(s) of any credit inquiries and giving an actual reason like your account is in sh1te.

dotsman

kaiser sauze wrote: »

I hope you have a hat handy, as Dotsman has explained it well. I wasn't certain whether it was 14 or 28 days that they must reply to you, but that is also clear now.



So you admit that you can write to the institution and ask for a reason behind their decision?

Thanks; a hat-tip to you, because I was not going to root out the info for anyone who should know these things already.

I think this guy is dillusional Do you understand what the OP was asking? Do you understand what everyone else was posting? Do you understand what was written in those links I posted?

stepbar

kaiser sauze wrote: »

I hope you have a hat handy, as Dotsman has explained it well. I wasn't certain whether it was 14 or 28 days that they must reply to you, but that is also clear now.

So you admit that you can write to the institution and ask for a reason behind their decision?

Thanks; a hat-tip to you, because I was not going to root out the info for anyone who should know these things already.

What a cop out. My god.

I'll keep my hat on thanks very much.....

kaiser sauze

dotsman wrote: »

I think this guy is dillusional Do you understand what the OP was asking? Do you understand what everyone else was posting? Do you understand what was written in those links I posted?

Sorry, I'm not taking your bait.

kaiser sauze

stepbar wrote: »

What a cop out. My god.

I'll keep my hat on thanks very much.....

I notice neither of you answered my question; cop-out indeed.

kaiser sauze

stepbar wrote: »

I found something similar today on my banks internal procedures intranet and was going to post it.

No bank discusses their credit criteria with the wider public. Christ the staff that submit the loans can (on some occasions) be as much in the dark. There's a clear difference between divulging the source(s) of any credit inquiries and giving an actual reason like your account is in sh1te.

Have you ever processed or seen a reply to one of these queries?

dotsman

kaiser sauze wrote: »

I notice neither of you answered my question; cop-out indeed.

To answer your question, anybody can write to anybody they want, requesting anything they want.

But:

kaiser sauze wrote: »

If you write to them and request a reason, they must supply you with one.

Is complete BS (as proven in my links to the Consumer Credit Act, basis.ie and quote from the IBI).

TommyGunne

How is it not clear that you can ask for (and receive) the sources that the bank had used in processing your application, but not the reasons for refusal? Telling you where they got there information from != reasons for refusal.

kaiser sauze

TommyGunne wrote: »

How is it not clear that you can ask for (and receive) the sources that the bank had used in processing your application, but not the reasons for refusal? Telling you where they got there information from != reasons for refusal.

This point seems lost on our bank apologists.

KillerShamrock

Jesus lads stop turning all the treads into im right and your wrong FLAMING threads.

For those of you who work in A bank do you not get enough of this in work give it a rest, and those that dont You clearly have a love for the job so go out and get a job in the bank.

the OP asked if he can get the reason for his decline well yes and no, that depends on the person who he speaks to they are not obliged to provide a reason but they can if they wish.

Its all laid out in the T&Cs of the loan application he signed but i guess like 99% of people he most likely didn't read them just signed something without reading what he is signing so end of story

stepbar

kaiser sauze wrote: »

I notice neither of you answered my question; cop-out indeed.

Well let me see..... (what is your question?)

You said ->

kaiser sauze wrote: »

If you write to them and request a reason, they must supply you with one.

Then....

kaiser sauze wrote: »

OP, if you really want an explanation, write to your bank and you will get a response.

Dotsman gave you an answer ->

dotsman wrote: »

Before intentionally trying to mislead posters, I suggest you read the Consumer Credit Act, 1995.

Or, if you can't understand that, perhaps in plain English, you may wish to try here

To quote (word-for-word) from the IBI QFA (Dip) Loans:

QFA Loans Section 7.9.13 - Refusal Of Credit
"Where an institution refuses to provide credit to an individual, the individual is entitled to ask the institution (within 28 days of the refusal) to disclose to him or her '...the name and address of any person from whom he sought information concerning the financial standing of the consumer who gave information which influenced the refusal.'"

Now... Is there something I'm missing? Perhaps you don't understand the difference between a reason and a responce? :rolleyes:

It's fairly clear that a financial institution doesn't have to give you a specific reason but they must respond to your query / complaint with in 5 days (under the guidelines issued by the Financial Ombudsman). So please stop digging.

kaiser sauze wrote: »

Have you ever processed or seen a reply to one of these queries?

Plenty. Any other questions?

kaiser sauze

stepbar wrote: »

Plenty. Any other questions?

I'm highly suspicious of this statement, FTR, based on my own, multiple, experiences.

I understand the difference quite clearly, thank you.

wingnut

+1 for Halifax being weird when it comes to lending. I applied for a credit card last year. Permanent job earning 40k + no debts, credit card for the last 7 years with nothing owing, substantial savings.

Very frustrated to be turned down only explanation being "we use a credit scoring system.. yada yada you have not met the critera". They would not give me any more info. I figured if they want to be like this there are plenty other banks who are more than happy to take my business.

channelsurfer

ok thanks for all the replies....

Ciaran W

Well, you could always ask them for a copy of all data held by them which concerns you in any way. If no reply, file a complaint to the Data protection commissioner. After all you are not asking them to reveal their lending policy (as they claim), just data which they hold about you which - you may feel is inaccurate - as the loan decision is still unexplained !

Toots

Ciaran W, this thread hasn't had a post in nearly 4 months. Please read the entire thread before posting and don't drag up dead threads for no good reason. I'd say it's safe to assume in this case that the OP has gotten the info they were looking for.