MBFS UK - Declined Applications

[jbess]

@markjay - if it were a similar situation who would I contact. The underwriters are not getting back in touch with me so I have no other means of contacting anyone at MB Finance. I unfortunately cannot let this go due to them completely alienating even my partner from applying.

 

[jbess]

@markja again - I have just had missed payments etc roughly 2 years ago but only one one clothing account. the rest has been steady for some time.

 

[Simon_M]

Hello,

The reason they are not getting back to you is because they would have to explain themselves and their credit scoring which they don't want to do. If for some reason your application flagged up as manual intervention then someone will have looked at it and made a decision based on anything they like including their mood. Your surnam may match an old girlfriend who they now hate or you said something derogatory whilst on hold on the phone (they can always hear the customer but you cannot hear them).

I am not saying that you did, but they will not explain themselves as it will open a can of worms.

Have you been shopping around for finance recently, a flurry of searches on your record can ring alarm bells?

They like things to be at least 3 years - job, time with bank, house etc.

I would call it a day and move on, you will not win this one. Try another finance company or car brand and see what happens. If you still have a problem then I think you need to get a copy of your credit report.

S

 

[jbess]

Thanks. I have just sent a complaints email and requested a adverse action letter. I will put it past me but its not right that they alienate every option to get the finance. I am getting quotes, and will keep you all up-to-date.

 

[stereophoney]

A 999 credit score is a meaningless figure, having one is no guarantee of being able to secure credit. It'll go more on affordability, the amount of credit you already have and how you manage your accounts. Making minimum payments and constantly going into a overdraft are not good signs.

The amount of credit you have available might also impact it, as even if you have not used your available credit they may assume that you will when making decisions. I'm not sure on the exact figure, but I believe it's around 50% of your income. So if your income was £20k and you had £10k in available credit on cards that would be your 50% and may stop you getting any further credit accounts.

 

[Dieselman]

I have never really been credit focuses until about 2 years ago. I hvae roughly 2 years with no payments missed, only about 16% of my available credit being used. I own a 50% of a company that owns 2 x properties. I have a estate agency that has been running for 6 years. So I am now really concerned. I have no contacts and its probably something I will never know.

Estate agency in slow selling times...

Missed payments on clothing account(s).

Would you trust an estate agent that doesn't make payments?

 

[Deleted member 6183]

The bottom line is that a finance company has declined to lend the money, it's their money and they don't have to lend it nor explain their reasoning.

There's plenty of suggestions on this thread as to the reasons why this is so and my bet would be that an application in the company name was rejected first - the reason for this might be that the company seems to be solely based upon owning 2 properties - and then the individual application has been submitted as a second throw of the dice.

Finance companies are very cautious in these austere times and as there is less competition for business they will decline any perceived risk and let a specialist lender pick it up.

I'd imagine that MB finance offer the best incentives and the keenest rates, mostly these will be made available to the least risky applicants.

 

[Spin_bowler]

Hello,

you said something derogatory whilst on hold on the phone (they can always hear the customer but you cannot hear them).

S

bit off topic but this isn't right. It's completely dependent upon telephony system in place.

 

[l5foye]

I recently ended a mobile phone contract with O2 and was due a refund. O2 advised me to make sure I claimed the refund , otherwise there would be adverse effect on my credit rating !

 

[jbess]

Found out from Experian that there are only 2 reasons why MBFS would have declined our applications.

1. Because someone who is financially connected to me has bad credit - Checked out and the only 2 people connected to both have 999 scores.
2. I already have finance out on a vehicle - Checked this and the outstanding amount is only £2500.00 left to pay.

Just not pleased with the service at all to be honest. Considering my plan is to upgrade and not keep both vehicles.

I have checked my partners score which is 999 and they have not run a search on her name yet, I dont show on her report as financially connected. The question is do you think they will pick our relationship up by address or work address

 

[neilrr]

They are under no obligation to lend to anyone. Do you think you can force them into giving you what you want?

If your credit is as strong as you think it is I'm sure other companies will accept you. Just look elsewhere.

 

[jbess]

I understand that but surely the have to send out an adverse action letter? they cannot simply deny and move on for no reason at all?

 

[Sp!ke]

I understand that but surely the have to send out an adverse action letter? they cannot simply deny and move on for no reason at all?

You can get turned down for credit with no explanation at all.

Having read your posts though I would suggest that your very short (2 year) good credit history is working against you. Credit scoring is calculated differently by each lender. your Experian credit score may be nothing like that which MB Finance are using.


Just accept it and try elsewhere.

 

[jbess]

Thanks...

 

[jbess]

Update -Managed to get finance through another company - Ordered car today but have to wait till November

 

[moff]

Probably worth noting the following:

There are 3 credit reference agencies in the UK in order of UK size:
1. Experian
2. Callcredit
3. Equifax

All 3 have 99%+ coverage of finance agreements on their database's.

There are 3 key business information / credit score providers:
1. Dunn and Bradstreet
2. Experian
3. Graydons

If you apply for finance as a consumer they will check you as a consumer. If you apply as a business they check as a business and for sole traders sometimes as a consumer too.

Scoring means a lot but each CRA calibrates differently so one score with one CRA could mean something else with another.

For info - MBFS use Equifax for consumer credit checking.

If you have concerns or want to check your credit rating FOR FREE register at www.noddle.co.uk which is supplied by Callcredit. You could pay Experian £13 per month too.

My industry so I know it well!

 

[kth286]

A finance company has to say why it turned an individual down by referring that individual to the APPROPRIATE credit reference agency it consulted when evaluating you.

 

[MoAMG]

Probably worth noting the following:

There are 3 credit reference agencies in the UK in order of UK size:
1. Experian
2. Callcredit
3. Equifax

All 3 have 99%+ coverage of finance agreements on their database's.

There are 3 key business information / credit score providers:
1. Dunn and Bradstreet
2. Experian
3. Graydons

If you apply for finance as a consumer they will check you as a consumer. If you apply as a business they check as a business and for sole traders sometimes as a consumer too.

Scoring means a lot but each CRA calibrates differently so one score with one CRA could mean something else with another.

For info - MBFS use Equifax for consumer credit checking.

If you have concerns or want to check your credit rating FOR FREE register at www.noddle.co.uk which is supplied by Callcredit. You could pay Experian £13 per month too.

My industry so I know it well!

So what do you do then?

If you work in this industry then you must also know that D&B/Experian/Infospectrum reports are often flawed and out of date?

Take J. Aron & Company for example, they are an indirect subsidiary of Goldman Sachs (arguably the largest IB in the word!) D&B had them listed as liquidated back in the mid 90's yet they were listed on Goldman Sach's annual returns for this year as a wholly owned sub!!!

Bearing in mind the fact that in this example we are looking at a massive company (MiFID ECP) and D&B have screwed up, I'm sure this leaves the scope open for even more mistakes/screw ups on reports on smaller companies and individuals?

 

[Dryce]

If you work in this industry then you must also know that D&B/Experian/Infospectrum reports are often flawed and out of date?

There is the issue of confidence. Just like the ratings agencies.

The credit agencies exude confidence. The banks and others who depend no them feed on and reflect that confidence.

Just like the big ratngs agencies nobody really wants to question the value of these agencies because they perform a function that allows decision making (ie. risk) to be commoditised.

My strong view is that credit agencies should be reglated by specific legislation - a sort of consumer credit and financial information act. It would make them liable for some kinds of errors (though that liability would be controlled) and make them auditable.

One aspect I find particularly odious is credit ratings agencies making money from consumers subscribing to access and interact with their files.

This should be a free obligation in order to be allowed to hold and provide information on somebody. Moreover people should have a right to know not just what information is held but to know who has accessed their information.

 

[Dieselman]

Why not just buy without using finance?