This might sound bazaar but it is an unusual scenario - not sure if I am posting in the correct thread so admin please feel free to move at your discretion.

I have approached the Co-operative bank recently for a loan to consolidate my credit cards to achieve a lower rate interest in order to be debt free within 3 years. However, my husband is in receipt of State Pension & Pension Credit and this is paid as a couple. Unfortunately, the bank have said that unless I can prove how much of those benefits are mine, they are unable to offer my loan due to lack of income

In my own right, I am in receipt of Carer's Allowance but that isn't sufficient.

My husband (due to ill health) is unable to apply for the loan and I have full Power of Attorney rights for his Financial & Health requirements.

As it is my responsibility to ensure his income is spent in his best interests, naturally, to try to obtain a lesser rate of interest supports my loan application, if they consider the application on the basis of the whole information submitted. Somehow, I suspect they have just done a 'blanket decision' hence, their refusal.

I have been in touch with the DWP and they will send out a detailed explanation but somehow, don't think that will convince them.

I have provided a detailed income & expenditure breakdown and if they were to only consider my income, then I would most certainly be living well below the government guidelines of income added to which, I have used the same income information for other lines of credit so how can they refuse on this basis? My credit file is sparkling so there are no other concerns.

Can anyone please advise how I could approach this please before I consider going to the Ombudsman?

Naturally as a lender part of the rules dictate to check income.

With that in mind, they are right in requesting info on state benefits.

Have cooperative left the application open for proof to be provided?

If so then, once you get the info they need, give it to them.

If they've declined the application then why not appeal it?

No need to complain just yet

Don't get me wrong, I totally understand they need to clarify where the money is coming from etc but if I were in debt with any bank they would take all the income into consideration so it appears to me to be double standards. I know about 'responsible lending code' but if I have got an excellent credit history and have managed regular repayments on my current credit surely that should be taken into consideration?

The other point the banks' rep made was that the income needed to be guaranteed - her example was; if my husband and I were to divorce, my income would change and therefore not be guaranteed. Well, wouldn't that be the same for any couple?

Yes, I will present my evidence when I receive it from the DWP and intend to appeal before complaining if the final decision isn't favourable. Just don't understand the banks logic.

You me both... I dont understand the banks logic

I know about 'responsible lending code' but if I have got an excellent credit history and have managed regular repayments on my current credit surely that should be taken into consideration?

...

Yes, I will present my evidence when I receive it from the DWP and intend to appeal before complaining if the final decision isn't favourable. Just don't understand the banks logic.

You me both... I dont understand the banks logic

There's nothing illogical about it. You may well have a sound history of managing credit but you also need to be able to afford the repayments of any new loan taken out.

The bank is not obliged to lend to you so I think you may be wasting your time in going to the Ombudsman.

They should have underwriters for manually-assessed decisions. So if the loan is refused at first you could get in touch with them.

"The bank is not obliged to lend to you"

The bank may not be obliged to lend to me but as a long standing customer I do expect their staff to deal with their customers professionally and accurately. I have an income of which some is paid in my husbands name, which is due to the administration by the DWP. If anything the Ombudsman will make an informed decision on what my income status is in their view and that will assist me moving forward with my requirements.

The clerk which dealt with my application telephoned me and fortunately for me, the call was recorded (by me) as she continued to provide inaccurate information, and confirmed that my application was unsuccessful at this time.

Later that day, I spoke to her manager to explain my disappointment and to clarify the information which her clerk had provided. INACCURATE from start to finish.

It's now in the hands of their complaints team with an emphasis that their legal department need to look into the case due to the 'special circumstances' before making a final decision by their manual-assessment team.

In the meantime, I await evidence from the DWP and will be discussing this matter with FOS enquiry line, FCA enquiry line together with the Office of Guardianship. It may not alter the decision but I certainly intend to get compensation for their incompetence.

I should not have been allowed to walk out of their branch expecting the loan to be deposited into my account within 5 days, advising me when the first payment was due to be paid and not be advised that my application was 'referred'. That's certainly not in the banking code of conduct!

Hi Shelley,

Let us know what comes back from your complaint to the bank.

I think you're up against it with the bank, if the DWP income is just paid in YH's name.

Hi Slick,

Thank you for you droppping in.

I have spoken with the DWP again, and they have clarified verbally that the income is payable as a 'joint' entity and that it is set in the old fashioned scenario whereby in years goneby, it was always deemed to be theat the husband was the bread winner in effect and is always paid to the husband in the case of benefits. They are sending out a special letter with a breakdown of what is 'mine' and his albeit, it is still paid is my husbands name.

My mistake in this thread was assuming I had been turned down because of lack of income - when in fact I should have said that the clerk has signed the agreement and lead me to believe that all was well and in order, and she has acknowledged that she made mistakes and now they are trying to worm out of the 'contract' by saying it is to do with income. Theoretically, funds should have been deposited within 5 days of the agreement subject to the cooling off period according to the clerk who did the agreement.

Will keep you posted.

Once again, frustrated by yet another financial institute....ARGH!

Hi Shelley. Did you have any joy? I started looking for threads about declined loans from smile, and yours was the nearest thing I could find although it is with co-op. I wanted to ask if after co-op declined your loan application, if you suddenly got any texts from, for example payday loan companies or dodgy credit card companies, offering you credit. I am aware of an example of this with smile and it seemed more than a bit of a co-incidence that it happened as soon as a loan was declined.

Hi Shelley. Did you have any joy? I started looking for threads about declined loans from smile, and yours was the nearest thing I could find although it is with co-op. I wanted to ask if after co-op declined your loan application, if you suddenly got any texts from, for example payday loan companies or dodgy credit card companies, offering you credit. I am aware of an example of this with smile and it seemed more than a bit of a co-incidence that it happened as soon as a loan was declined.

Hi

I didn't get any joy with the Cooperative Bank and I have been inundated with loan sharks offering me high interest rate loans or c/c's.

it has also impacted on my credit file because I check it every month and my scores have dropped, not much but it's the principle of the fact the bank clerk made several errors and I am suffering because of her incompetence.

I am complaining to FOS having spoken with FCA and will update my thread. Bare in mind though FOS wont rush their response so it maybe awhile.

I have NOT accepted any shark loans because in the mai, my credit file is good.

Hope that helps

Shelley

Hi

I didn't get any joy with the Cooperative Bank and I have been inundated with loan sharks offering me high interest rate loans or c/c's.

it has also impacted on my credit file because I check it every month and my scores have dropped, not much but it's the principle of the fact the bank clerk made several errors and I am suffering because of her incompetence.

I am complaining to FOS having spoken with FCA and will update my thread. Bare in mind though FOS wont rush their response so it maybe awhile.

I have NOT accepted any shark loans because in the mai, my credit file is good.

Hope that helps

Shelley

Thanks for responding Shelley. Just to confirm these texts started AFTER the loan was declined?

I'll be interested to see how your complaint pans out.

Thanks again.

Here's an update:

Having complained to FOS, I have received letter from them advising who my case handler will be and have spoken with them today. They are awaiting the records from the bank and indicated they hope to have them by the end of the week.

They agree that the process wasn't dealt with correctly and that I had been unfairly treated, and agreed with me when I said I felt it was a breach of promise and trust. Based on the options they said were available to them I suspect this will be a compensation settlement.

However, part of my claim was that my credit file had been affected by the banks decision and they will look into that and let me know what they are able to sort out - would be interested if caggers have experienced this and how it was handled please?

Also, during my research I found that the banks Consumer Credit License had expired 2 months prior to my loan application and I have raised this with FOS. They have advised me that they are unable to include that element as part of my claim but informed me that there is an 'ongoing review' with the FCA over this matter. Has anyone got any information on what happen during a review of this kind and the implications it may have for the bank please?

Just to clarify, I still get on-going texts offering me high interest shark loans from various organisations which naturally, I ignore and block.

Edit: Is it usual for FOS to want a copy of someone's credit file in these circumstances?

Here's an update:

Having complained to FOS, I have received letter from them advising who my case handler will be and have spoken with them today. They are awaiting the records from the bank and indicated they hope to have them by the end of the week.

They agree that the process wasn't dealt with correctly and that I had been unfairly treated, and agreed with me when I said I felt it was a breach of promise and trust. Based on the options they said were available to them I suspect this will be a compensation settlement.

However, part of my claim was that my credit file had been affected by the banks decision and they will look into that and let me know what they are able to sort out - would be interested if caggers have experienced this and how it was handled please?

Sounds positive.

Also, during my research I found that the banks Consumer Credit License had expired 2 months prior to my loan application and I have raised this with FOS. They have advised me that they are unable to include that element as part of my claim but informed me that there is an 'ongoing review' with the FCA over this matter. Has anyone got any information on what happen during a review of this kind and the implications it may have for the bank please?

This isn't an issue.

Starting on April 2014 the OFT was dissolved and regulation for consumer credit became the responsibility of the FCA. The FCA has a different process whereby firms offering consumer credit need to be authorised. But if the firm previously had an OFT consumer credit licence they could apply for interim permission to carry on undertaking consumer credit activities for a longer period before having to apply for authorisation.

The Co-Operative Bank does indeed hold interim permission.

Just to clarify, I still get on-going texts offering me high interest shark loans from various organisations which naturally, I ignore and block.

That doesn't clarify the question asked. Caro was specifically asking if the texts started directly after the declined loan application? I wouldn't have thought the two events have anything to do with each other though.

Edit: Is it usual for FOS to want a copy of someone's credit file in these circumstances?

Yes. You've mentioned that your credit file has been affected, so it's natural that they want to assess the impact.

Caro, YES........the texts did start immediately after this loan application and the calls I received about the same topic were recorded and I still have them on my phone. Just listened to some of them and I had asked where they got my information from. It has settled down more recently.

As I suspected, FOS have proposed a settlement in my favour and of a compensation nature. I'm happy with the result because the bank have also agreed to remove the search from my credit file and I should be put back in the same position as if I hadn't applied for the loan (and they hadn't messed up).

I am extremely cautious as to who has access to my information, including FOS, for whatever purpose. Obviously a bank will do a search on someone's credit file before processing a loan so I don't see why they would need sight of it. FOS would know or at least have an idea of the level of impact this would do to someone's credit file, but hey, it's dealt with now.

I do think it is about time these financial institutions sat up and behaved themselves and stop messing around with customers accounts and started treated us with some respect - at the end of the day, they can't operate without our custom and if they don't treat us fairly, there's always another one down the road.

So, yet another positive outcome. On to the next Bank.

Hi Shelley,

Looks like another good result for you

Shelley the Bank Slayer

Caro, YES........the texts did start immediately after this loan application and the calls I received about the same topic were recorded and I still have them on my phone. Just listened to some of them and I had asked where they got my information from. It has settled down more recently.

 

As I suspected, FOS have proposed a settlement in my favour and of a compensation nature. I'm happy with the result because the bank have also agreed to remove the search from my credit file and I should be put back in the same position as if I hadn't applied for the loan (and they hadn't messed up).

 

I am extremely cautious as to who has access to my information, including FOS, for whatever purpose. Obviously a bank will do a search on someone's credit file before processing a loan so I don't see why they would need sight of it. FOS would know or at least have an idea of the level of impact this would do to someone's credit file, but hey, it's dealt with now.

 

I do think it is about time these financial institutions sat up and behaved themselves and stop messing around with customers accounts and started treated us with some respect - at the end of the day, they can't operate without our custom and if they don't treat us fairly, there's always another one down the road.

 

So, yet another positive outcome. On to the next Bank.

For every person that stops doing business with a bank, theres 100 more waiting to do business with them. Thats just how it is sadly. The banks know this and really dont care about the customer. The past issues with banks (libor , the global economy crash) show that to be true.

Pleased to hear you received a fair outcome to this