HSBC Loan approved

[Busdriver59]

Hi all

I have been banking with HSBC for some years now. Last week I applied for a loan via on line banking. I was told my loan had been approved, but could not complete on line. They asked me to call to arrange a time for me to see the bank to sign for the loan. I called the number and was told I needed to take some ID with so I can sign the agreement. I did print out the screen telling me the loan had been approved.

 

 

As it was Sunday and the banks closed, I went to pay £200 deposit for a car.

When I went to the bank on the monday, they told me I had in fact been declined. Because of this I have lost my £200 deposit. Can this be done?

 

 

Many Thanks

[citizenB]

I think they are obliged to tell you why you have been declined. Have they said why ?

[Busdriver59]

They said my credit score was not good enough. But I cant understand why, it said I was approved via on line banking

[maroondevo52]

Have you read all the 'small print' on the online approval.

[Busdriver59]

Your personal loan has been approved, but unfortunately we cannot complete it on line. Please call us on 0800 032 4735 to make an appointment to visit a branch or call into any branch within 14 days to complete the loan. Please note, if you do not make an appointment you may have to wait to be seen.

SB8

[maroondevo52]

No indications there that it would be declined, not sure how you would proceed with this. It's not something I've come across.

[citizenB]

They said my credit score was not good enough. But I cant understand why, it said I was approved via on line banking

 

This is the problem with online applications - they will approve in principle, but then when further checks are done it kind of breaks down.

 

The online decision will be based on the information you have provided. They will then do further checks to ensure that what you have said is accurate. When checking your credit files if they see perhaps you have had a PDL within the last 2 or 3 years even it was repaid on time- that would automatically reduce your score with the bank. (I am not saying you have had a PDL - that was just an example of how their decision can change).

 

Generally speaking, what does your credit file look like ?

[BRIGADIER2JCS]

This is an agreement in principal made on data available at the time of the online application I doubt there is any challenge to the banks decision.

[Conniff]

Get all the paperwork together and then write to the car dealer and explain that the loan, although initially approved, has now been unapproved and can you have your deposit returned.

 

 

He might offer you finance which you can accept or not. If he says no to the deposit return, I would bill HSBC and claim the £200 from them telling them that you made the payment because they told you they had approved the loan.

 

 

If they say no, (probably will at first attempt) then send them a stronger letter and threaten small claims. Don't threaten if you won't go through with it though should they still refuse.

[rebel11]

Hi Busdriver

 

Once you've got a final answer from HSBC, you can raise a complaint with the Financial Ombudsman Service, that will unfortunately cost HSBC a fee.

[Busdriver59]

Thankyou for your help, i shall be writing a letter to HSBC. But i think i will need to change my bank.