Film, Media & TV4 mins ago
Banks
2 Answers
I need to find a new bank..one where your record with them counts..or am i just being naive? I would appreciate any feedback from you all.
I currently bank with TSB and have for over 10 years. This week I tried to pay off my personal loan and my card payment got declined..twice..on two consecutive days. Despite there being way enough money in the account to cover it. Even the lady on the phone from TSB couldn't understand it. She raised a complaint for me...got my card unblocked and promised me that someone would call me within 24 hours...3rd day on and still no call!
I wanted to pay loan off because i wanted a new one with them....same terms....same amount...same interest rate...a payment i can manage and have been for 3 and a half years before paying it off this week. They have told me this morning that they feel it wouldn't give me sufficient money after all my bills...so loan was refused. Even though i have paid the same amount back to them each month....never defaulted...never defaulted on anything in my life. I am devastated....i want to change my bank as it just doesn't feel personal enough anymore....so...who do you bank with and are they any good...for 53 yr old woman...no massive pile of money to invest...just getting through every month!
I currently bank with TSB and have for over 10 years. This week I tried to pay off my personal loan and my card payment got declined..twice..on two consecutive days. Despite there being way enough money in the account to cover it. Even the lady on the phone from TSB couldn't understand it. She raised a complaint for me...got my card unblocked and promised me that someone would call me within 24 hours...3rd day on and still no call!
I wanted to pay loan off because i wanted a new one with them....same terms....same amount...same interest rate...a payment i can manage and have been for 3 and a half years before paying it off this week. They have told me this morning that they feel it wouldn't give me sufficient money after all my bills...so loan was refused. Even though i have paid the same amount back to them each month....never defaulted...never defaulted on anything in my life. I am devastated....i want to change my bank as it just doesn't feel personal enough anymore....so...who do you bank with and are they any good...for 53 yr old woman...no massive pile of money to invest...just getting through every month!
Answers
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All much of a muchness these days, I'm afraid. Decisions are no longer taken by individuals but by computer.
13:10 Sat 08th Apr 2017
It's nothing to do with your bank. Their refusal to offer you a fresh loan is a result of the tightening of the banking rules by the Financial Conduct Authority.
Banks used to be able to offer loans based upon looking at a customer's income and only a limited number of their outgoings (such as mortgage payments). Under the new FCA rules, bank must now take into account all of of customer's outgoings (including things like gym and magazine subscriptions, charity donations, car breakdown insurance payments, etc). So far fewer loans are now being offered.
Further, the FCA has tightened up the rules on 'repeat loans'. That's largely as a reaction to the practices of 'doorstep lenders' (such as Provident), where it had become normal for them to automatically offer a new loan as soon as an existing one was paid off. The new FCA rules mean that offering repeat loans must now be regarded as an exception (requiring special circumstances to justify it), rather than as the norm. So, for many people, getting a 'repeat loan' will no longer be possible (both with doorstep lenders and with High Street banks).
Banks used to be able to offer loans based upon looking at a customer's income and only a limited number of their outgoings (such as mortgage payments). Under the new FCA rules, bank must now take into account all of of customer's outgoings (including things like gym and magazine subscriptions, charity donations, car breakdown insurance payments, etc). So far fewer loans are now being offered.
Further, the FCA has tightened up the rules on 'repeat loans'. That's largely as a reaction to the practices of 'doorstep lenders' (such as Provident), where it had become normal for them to automatically offer a new loan as soon as an existing one was paid off. The new FCA rules mean that offering repeat loans must now be regarded as an exception (requiring special circumstances to justify it), rather than as the norm. So, for many people, getting a 'repeat loan' will no longer be possible (both with doorstep lenders and with High Street banks).
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