Declined Loan - Entitled To Know Why

az2wp0sye65487

Hi,

Just wondering:

When a loan application is declined, are you entitled to be given a reason why? I'm nearly sure you are. I've been searching online for a link to legislation etc. detailing this but haven't come across anything yet. Could anyone point me in the right direction?

Thanks.

Anyone

The only legal right you have is if the lender used a database in making their decision(ie ICB). Other than that, the lender has no legal requirement to inform you why you were declined.

az2wp0sye65487

So if a lender just decides not to give you a loan, they are not obliged to tell you why?

That's frustrating - and also doesn't seem very fair.

BuffyBot

Nope - it's their prerogative

Jet Black

You can figure it out yourself by looking at your circumstances.

First what's your disposable income?
That's your take home minus expenses (bills, loans, finance, dependants, credit cards*, savings, cost of living)
If there's not a lot left they won't look at it.

* I think its 20% of your balance.

Look at the last 3 months of statements. Do you go overdrawn much? Or do you keep a good balance on your account.

Have you missed payments on credit cards, loans or you mortgage? How is your ICB?

How long and secure is your employment?

If you answered negativity to any of these its pretty much instantly declined.

Have you any loans that show you are good at paying back the money? Do you make regular payments to savings?

Have a look at your P60 too. I was earning much more than I realised with allowances and overtime but put down a smaller figure on the loan application.

az2wp0sye65487

Jet Black wrote: »

You can figure it out yourself by looking at your circumstances.

First what's your disposable income?
That's your take home minus expenses (bills, loans, finance, dependants, credit cards*, savings, cost of living)
If there's not a lot left they won't look at it.

* I think its 20% of your balance.

Look at the last 3 months of statements. Do you go overdrawn much? Or do you keep a good balance on your account.

Have you missed payments on credit cards, loans or you mortgage? How is your ICB?

How long and secure is your employment?

If you answered negativity to any of these its pretty much instantly declined.

Have you any loans that show you are good at paying back the money? Do you make regular payments to savings?

Have a look at your P60 too. I was earning much more than I realised with allowances and overtime but put down a smaller figure on the loan application.

Thanks for that.

I don't want to go into too much detail as I'm disputing a decision made by an institution.

Basically, I was able to prove affordability, regular savings history, cleared a previous loan early, no arrears or missed payments etc.

But I was refused.

Frustrating.

Slippin Jimmy

Simeon Tight Monochrome wrote: »

Thanks for that.

I don't want to go into too much detail as I'm disputing a decision made by an institution.

Basically, I was able to prove affordability, regular savings history, cleared a previous loan early, no arrears or missed payments etc.

But I was refused.

Frustrating.

I know with permanent tsb that you can write to them and they will give you the reason, but they won't tell you over the phone.