Refusal of Credit CCA 1995

Under the the Consumer Credit Act 1995 where a credit provider refuses to provide credit to a consumer, the consumer is entitled to ask the credit provider to disclose to him/her, the name and address of any persons from whom they sought information concerning the financial standing of the consumer who gave information which influenced the refusal.

This information must be requested within 28 days of the refusal. When the consumer receives the information and reviews same, if he/she considers this information to be incorrect, can then request the credit provider to remove or amend the incorrect information within 28 days. Likewise, the credit provider after receiving such a request can , within 28 days of receipt of the notice, decide to remove, amend or take no action, as it sees fit.

If a consumer’s application for credit is rejected by a credit provider based on a search on a database, the credit provider must inform the consumer immediately of the results of the search and the details of the database consulted.

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Loan refusal statistics: what do they mean?

There are two sets of statistics floating around; on one hand you have the banks who claim that they are lending and also that the demand for credit simply isn’t there – a belief further expounded by John Trethowan. Then on the other hand you have the likes of PIBA who counter claim that 80% of applications are being refused.

So it is important to break down the vital components. First of all, the debate often centres around Small Medium Enterprise (SME) lending; even if demand for that type of credit isn’t there it doesn’t automatically translate into a reduced demand for mortgages. The point being that we can’t compare SME loans/business loan demand to that for mortgage credit.

Secondly is ‘what constitutes a refusal’, and this is where common sense diverges. Even the bank accept that if you seek €200,000 and are only offered €100,000 that it is a loan not fit for purpose, this even goes …

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