Refused credit card by mbna

jaffa20

Hi all, so i applied for a credit card last week online with mbna. Filled in their very in depth application form. Got the same letter twice refusing me a credit facility. What got me worried was that they clearly stated i should gain a credit report from icb.ie. That got me worried as i didn't think there was anything in my credit history were i missed payments etc. I only have a loan with boi and i have paid of a 3rd of that by full direct debit already.

So i applied for a credit report and got it today in the post. I got a high score from a check that ulster bank did in April last of over 500 which categorises me as low risk. If mbna had even done a check, wouldn't it have shown up on the report?

This pisses me off that they refuse me a credit card and their main reason is my credit history which is risk free. They were aware of the loan i have as this was in the application form.

If they clearly refused me for a reason and not referred me to the icb.ie, i would not be as angry. They also asked for me to send all my statements/ID etc in at the time of application and i was getting these ready just as i received the refusal letter that day.

It says in the letter, that i can appeal their decision. Do you think this is worthwhile? I'd also like to complain as to why they referred me to icb when they didn't even do a check..

BuffyBot

The letter was undoubtedly a template - the ICB mention is most likely a general thing, not specific to you.

You could appeal - but at the end of the day, but they're under no obligation to offer you credit, or a reason for refusal.

jaffa20

BuffyBot wrote: »

The letter was undoubtedly a template - the ICB mention is most likely a general thing, not specific to you.

You could appeal - but at the end of the day, but they're under no obligation to offer you credit, or a reason for refusal.

Yeah it looked like a generated template letter. They really should give some indication of refusal though. I don't understand why they cannot give a specifc reason for refusal? Is someone not entitled to that given you have taken your time to apply. I confirmed anyway that it was nothing to do with the ICB rating so i may just write to them with a copy of my report and asking why i was referred here and for wasting my time and 6euro!:D

purpur1

FYI....

It's a template "decline" letter. They're not under any obligation to give you reasons why they declined you for credit - example, if it was an ICB automatic decline, (this is usually a different template letter than the one you recieved) then they'll explain that the you need to contact ICB and you'll obtain the information from the ICB and not MBNA. If your application was just weak in general, they don't really give you any information thats of any use and just point you in the direction of the ICB. If you eventually go to complain, you'll either be told they cant discuss the particulars of their scoring system depending on their company policy and they'll send you a further letter of useless information. They're not obliged to do anything for you unfortunately.


Some reasons why....
When you apply for credit, your stability as a potential customer is reviewed. An ICB check is done - if this is ok then further checks need to be done.
They review your earnings - incomings vs outgoings and potential to repay them. They review your job stability (length of time in job & and most banks do a "mystery" confirmation call that you are actually employed there - legally they're not allowed to call up and say "I'm calling from Bank of X Does Mr So and So work here" but there's nothing written in the law to say that they cant call up to ask for you and then hang up when they're being transferred to you or told you're out of the office). They just need to confirm you're working where you say you're working.
They also review your living stability (i.e the longer you've been living at one address the better - this is confirmed through the phonebook, thoms directory and usually ICB too). If you're a homeowner you get a better score than an applicant that is living with their parents, but if you're a long term renter then that will usually score similar to a homeowner.

Basically, they'll have their own scoring system reviewing all your information after the ICB check. If the application is below a certain score then it is considered weak even with previous good accounts on the ICB, then it's a decision for the underwriter to take and more than likely in your case, a decline. Underwriting has become far more stringent in the recession.

purpur1

jaffa20 wrote: »

Yeah it looked like a generated template letter. They really should give some indication of refusal though. I don't understand why they cannot give a specifc reason for refusal? Is someone not entitled to that given you have taken your time to apply. I confirmed anyway that it was nothing to do with the ICB rating so i may just write to them with a copy of my report and asking why i was referred here and for wasting my time and 6euro!:D

Review my last post - if you're still unable to understand why you were declined then you could MBNA and ask to make an appointment to go in and see all of the information and notes that they have on you. You're entitled to do this under the Data Protection Act. Their notes will more than likely be logged in some sort of code (if they're there at all.....) so you may or may not understand at the end of it!!! Try and work it out for yourself.

jaffa20

purpur1 wrote: »

FYI....

If your application was just weak in general, they don't really give you any information thats of any use and just point you in the direction of the ICB.

Some reasons why....
When you apply for credit, your stability as a potential customer is reviewed. An ICB check is done - if this is ok then further checks need to be done.

The above points are what i'm finding hard to understand. It was probably the above template letter that i received. I would like to understand as a "potential" customer why my application was weak in general and why they would point me in the direction of ICB if there was no need for me to do that as my credit check revealed i was a low risk customer.

The very fact that they mentioned my credit history in the letter made me worried that there was something in that made them refuse me.

This is why i am annoyed. Do you see my rational here? If you are an employee of mbna. I'd advise your superiors to alter your templates and not to refer customers unecessarily to the ICB when they may have a perfect credit history and that had nothing to do with their refusal.

3DataModem

Surely you mean to refer "non customers"?

If you can't get credit from MBNA then you've hit a major trigger on their firm. They don't tell you what it is so that you can't just fake the form.

Answer me these questions;
- how many credit cards have you ever had?
- how many times have you changed address in last 3 years?

purpur1

jaffa20 wrote: »

The above points are what i'm finding hard to understand. It was probably the above template letter that i received. I would like to understand as a "potential" customer why my application was weak in general and why they would point me in the direction of ICB if there was no need for me to do that as my credit check revealed i was a low risk customer.

The very fact that they mentioned my credit history in the letter made me worried that there was something in that made them refuse me.

This is why i am annoyed. Do you see my rational here? If you are an employee of mbna.

I'm not but i understand personal underwriting through previous, unrelated employment.

jaffa20 wrote: »

I'd advise your superiors to alter your templates and not to refer customers unecessarily to the ICB when they may have a perfect credit history and that had nothing to do with their refusal.

Have this conversation with MBNA - no offence but they probably deserve to be complained to!!! They're not obliged to tell you anything unfortunately.

jaffa20

3DataModem wrote: »

Surely you mean to refer "non customers"?

If you can't get credit from MBNA then you've hit a major trigger on their firm. They don't tell you what it is so that you can't just fake the form.

Answer me these questions;
- how many credit cards have you ever had?
- how many times have you changed address in last 3 years?

I'm a first time applicant for a credit card and have moved address twice in the 3 years. I don't see how that is relevant though. Really, i wouldn't try and rig their system once they have refused me and even if i did, i'm sure they would know. Isn't that why we provide proof of income/bank statements etc in the next step to proceed?

Anyway, the main reason i am annoyed is why i was referred to ICB unecessarily since a credit check was not carried out by them as it would have shown on the report according to the ICB. I will be writing to them about this particular point and asking them to change their procedures re this.

kippy

Jaffa,
Have you looked at this option?
Not ideal for all situations but an option.
Also, I believe Ulster Bank have released a "Visa Debit Card".
http://www.boards.ie/vbulletin/showthread.php?t=2055635455

I "think" this may work abroad..........

jaffa20

kippy wrote: »

Jaffa,
Have you looked at this option?
Not ideal for all situations but an option.
Also, I believe Ulster Bank have released a "Visa Debit Card".
http://www.boards.ie/vbulletin/showthread.php?t=2055635455

I "think" this may work abroad..........

Ah yeah, i looked into that alright. I was with ulster bank before and was really unhappy with their service that i closed all my accounts. I had the visa debit card with halifax and it was great. Was crap when then shut down as found their customer care to be excellent too.

It's the main reason i'm looking for a credit card now. Not even looking for massive credit facility as i will be paying 100% direct debit each month.

Anyway, mbna probably wouldn't like that anyway as they would make their profit out of someone who misses their payment by a day and charges ridiculous fees etc.

Oh well, many other credit card providers out there. Some might actually carry out an icb check before informing a "non customer" to go to the ICB.

purpur1

jaffa20 wrote: »

I'm a first time applicant for a credit card and have moved address twice in the 3 years. I don't see how that is relevant though.

It's basically telling them that you have less stability than a person, for example, that has been living at the one address for say 10 years. It's all for the purpose of fraud and debt protection - if the loan ever defaulted etc. But i highly doubt you would be outright declined for that reason alone. If its not an ICB decline, then it's usually several factors involved - and this might be one.

jaffa20 wrote: »

Really, i wouldn't try and rig their system once they have refused me and even if i did, i'm sure they would know. Isn't that why we provide proof of income/bank statements etc in the next step to proceed?

Fraud protection - you're an honest person but the amount of people that actually do this is unbelievable.

jaffa20 wrote: »

Anyway, the main reason i am annoyed is why i was referred to ICB unecessarily since a credit check was not carried out by them as it would have shown on the report according to the ICB. I will be writing to them about this particular point and asking them to change their procedures re this.

I think ICB is mentioned in the template to provide you with some answers although it's usually irrelevant to most applications that an underwriting system would consider as weak.

Best of luck with your complaint - would love to hear what they come back to you with

jaffa20

purpur1 wrote: »

I think ICB is mentioned in the template to provide you with some answers although it's usually irrelevant to most applications that an underwriting system would consider as weak.

Best of luck with your complaint - would love to hear what they come back to you with

Thanks, i'll check once again with ICB tomorrow to ensure that a recent check was not carried out. Will post up or pm you with any response i recieve from mbna. I won't really make it a complaint but more recommendation on their template letters if the above was the case.

jewett

You were lucky you even got a direct response off them - they usually string you along until you tire from enquiring about their credit application process.

http://www.boards.ie/vbulletin/showthread.php?t=2055862985


This poster sums up MBNA pretty well.

Fozzie Bear wrote: »

My brother works for MBNA. Believe me you do not want their credit card OP. If I could sit you down for an hour with him you would soon know why. There are a lot of fine print terms and conditions which they use to financially rape their customers.

You had a lucky escape.

Savman

OP, take it from an MBNA customer, consider a Visa Debit or other alternative. MBNA are an awful shower to deal with these days.