Banks are full of crap!!! Red Tape Bull....

kluivert

Here we go....

I applied for a personal loan of 900e with my bank for car insurance

It was declined as i have already two loans out one for the car and the other for my college fees. €3400 and €350 is the balance of each.

They said my loan appilcation was refused on the basis that i took out a grand last month for college fees (As you can see i have paid off €650 already).

The financial advisor turned around and said that the bank where willing to consolidated the two above loans and grant the car insurance loan. I said NO!
Combining a short term loan with a medium term - does not make sense.

Then the financial advisor said hold on you have been pre approved for an increase on your overdraft limit to €1850.

Now thats double what i was looking for for the car insurance.

So can anyone explain banking policy to me.

Keyzer

I always thought banks were full of money...

Chipboard

Your application was probably credit scored. This basically involves ascribing positive and negative scores to the different characteristics of your application. In this case your score obviously didnt meet the cut off score to sanction the loan however a separate (but similar) system had you pre-approved for an increased overdraft (good spot by the bank official). Credit scoring can give what appears to be a silly answer occasionally but if a scoring system is built properly using the data the bank has gathered up over the last few years there is absolutely no doubt that it is a far better risk measurement tool than judgemental lending (where a human assesses it). Its only disadvantage is that it will piss a couple of people off but it has tonnes of advantages.

bounty

why didnt you earn the 900 over the summer?

the bank will make a lot more money off you by giving you the money via your overdraft

kluivert

When i said i was attending college i meant Professional Accounting Examinations which are not cheap and as a part qualified accountant we dont earn a fortunate at this stage as some people may like to think.

I know of the banks credit rating system. To consolidate the existing loans together reduces the monthly repayments over the long term. Which in turn reduces the credit rating and thus i would have successfully appiled for the loan.

I posted this just to see if other people had funny experiences with banks lately!

0utshined

kluivert wrote:

The financial advisor turned around and said that the bank where willing to consolidated the two above loans and grant the car insurance loan. I said NO!
Combining a short term loan with a medium term - does not make sense.

Just to say on this, If the new rate is at a lower rate than the short term loan and there's no facility fee and prepayments are allowed on the loan then I probably would have gone for that and continued paying the short term component of the loan over the same period as before.

Ron DMC

hehe, i love working in a bank, no problems when it comes to loans

homeOwner

I totally agree with the original poster regarding banks.

I tried to get my business credit card limit raised from 1500 to 3000 so I could buy a laptop from dell online. I had to fill out a form (ok fine), then I had to sign some sort of personal guarantee that I personally would be responsible for the debt (even though its a limited company) - I did this even though I didnt agree with it.

Then after 3 weeks of waiting for their decision they asked that I desclose to them my personal bank details, including all deposit and savings accounts. I laughted at the person who asked this - i basically told them my company is a limited company and they have no right to ask that. It has never been overdrawn, there is more money in my company bank account (which pays off the cc by direct debit every month and hence they have all the details for it) than the 3000 I was looking for in the limit increase, i was not looking for a loan - simply a limit increase to buy a laptop which would be paid by dd at the end of the month clearing the balance like it does every month. So basically I refused to tell them anything about my personal bank accounts. I was told someone would get back to me.

Then about 2 weeks later I got a call to go back into the bank and submit ID to the bank and sign another statement of guarantee as they claimed that for the original credit card limit of 1500, they had nothing on file for me by way of guarantee (so basically I had been using the cc for the past 5 years with no personal guarantee signed by me!!).

I basically told them to shove it. I used my personal cc which has a limit of 5000 to buy the laptop.

4 weeks later, I got a letter from the bank offering my limited company 5 credit cards each with alimit of 2000 "to meet the needs of today's business". So basically they were offering my company (for which they claim I have not signed any personal guarantee, which is mandatory!) a combined limit of 10,000 and they refused to increase one card's limit to 3K four weeks earlier.

I am in the process of writing them a very strongly worded letter and moving my account, although this is like cutting off my nose to spite my face as it is such unbelievable hassle to do this and they were convenient.

kluivert

A limited company is a serperate legal entity, like you or me, you where right in saying that they had no right to ask for personal details.

Banks have a ogli - monopoly in this country and i welcome the introduction of the RBS and any other bank sucj as RABO.

davidoco

homeOwner wrote:

I totally agree ......

As above re the ID. I deal with NIB on a regular basis and they give me that crap about photo id every time I try to do anything new with them. I'm at the point where the next person on customer services that tells me about out of date id, provisional licence id, black and white id etc etc I'll be claiming temporary insanity for my actions.

nlgbbbblth

homeOwner wrote:

I totally agree with the original poster regarding banks.

I tried to get my business credit card limit raised from 1500 to 3000 so I could buy a laptop from dell online. I had to fill out a form (ok fine), then I had to sign some sort of personal guarantee that I personally would be responsible for the debt (even though its a limited company) - I did this even though I didnt agree with it.

The bank is entitled to seek security for its debt.
The limited company has a €3k credit card facility.

Normally for small sums such as this a letter of guarantee from one or more of the directors is taken - essentially the director guarantees the company's debt.

Why should the bank lend money / make available a credit facility to a limited company on an unsecured basis?

If they do, they're f**ked if the company goes belly-up and can't repay its debts.