refused mortgage, bad credit.

[kerinsp]

Hi there,
some friends of mine were refused a mortgage and apparently its due to bad credit on one of them. The broker is telling them that the bank will not tell them who has the bad credit and why. They got their credit ratings checked independently and both of them have a good rating with no problems so they are pretty annoyed at whats going on.

Can they ask to meet the bank manager to find out who has the problem and for what reason? I mean how can they remedy the situation for the next time if they dont know what the problem is. Can the banks really tell you they wont be sharing their information? They have lost the house they wanted now.

 

[Sarah W]

The bank CAN'T tell the broker what the bad credit was; it is against the data protection act. Have they approached the ICB and obtained reports on themselves? They can show these to the broker or lender directly. If they want to contact me to go through their circumstances and to try to figure out what the problem is I'd be happy to help.

Sarah

www.rea.ie

 

[kerinsp]

Sarah,
Cant he bank go through the bad credit details directly with the customer then? (instead of passing the details to the broker?) They already got their own credit checked with the ICB and there was no problem.

 

[Savvy]

Could be a few things
1)Mess up on first ICB report excluded some dodgy information on an outstanding loan
2)Bank check is picking up dodgy information from ICB. This has happened in the past(you only need to check some of the case studies at www.dataprotection.ie to see examples).
3)One of you is not been totally honest about whats on their report-or misreading the report they have.At the end of the day it could be a number or letter on a payment profile that is incorrect/misinterpreted.

What I would do
1)Recheck the ICB reports you received and ensure that the payment profiles are fine. All 0's preferably and check that any letters that exist on it are not negative ones.
2)Have you any C/cards with the bank in question? If these are high or badly maintained then these may not be on the ICB system but certainly visible to the staff making the decision on the loan.
3)Reapply to the ICB providing all addresses that you would have had, perhaps you used a work address for a loan(I know I did at one stage).

Nobody can tell you that you have a good rating from an ICB report. The banks may have access to other info thats not on the report(eg c/c details if card is with said bank).
If you believe this is a mistake, I would contact the bank in question and advise them that you believe there is a mistake. Perhaps they will advise you.