Question of cash: Bank pays up for error that led to a loan refusal

<preform> <!-- MONEYNET --><!-- LOANS --><table align=left border=0 cellpadding=5 bgcolor="#ffffff"><tr><td><table align=left border=0 cellpadding=1 cellspacing=1 bgcolor="#919AA6"><tbody><tr> <td bgcolor="#FFFFFF"><table width="100%" border="0" cellspacing="0" cellpadding="2" bgcolor="#FFFFFF"><tr> <td align="center"><span class="smaller"><a href="http://money.independent.co.uk/moneynet_story.jsp?story=87376"><font color=#00cc33>Money</b></font><font color=#6b009c>net</b></font><br>loans<br>search</font></b></a></span></td></tr></table></td></tbody></table></td></tr></table><!-- END MONEYNET --> Q</b> Last month we applied to Northern Rock for a personal loan of &#163;6,000 after Your Money listed its good borrowing rate. We are both employed, with a net income of &#163;28,000 a year and investments of &#163;30,000. The outstanding balance on our mortgage is &#163;6,300 on a house worth &#163;175,000, with just one small personal loan for a car outstanding. We were refused without any reason given. We complained and Northern Rock said it can approve or refuse loan applications as it likes and we did not meet their lending criteria. The letter ignored our concern that our credit rating may be wrong. Was the loan too small, or does Northern Rock approve loans only when borrowers take out their expensive insurance? We have since arranged the loan with our mortgage lender, Bristol &amp; West. S&amp;RG, Somerset</p>A</b> This is cock-up, not conspiracy. Apparently your address was not recognised by Northern Rock's computer system. This generated a loan refusal, where it should have led an employee to find out why the address was not recognised. A company spokesman said it was frustrating because you are exactly the type of customers Northern Rock wants. He said the bank does not reject applicants who refuse payment insurance. As a gesture of goodwill, the bank is sending you &#163;50. It also promises a review of its procedures to learn lessons.</p>Q</b> You reported ('Nationwide plays fair', 23 February) that the Nationwide is to refund &#163;90m to borrowers who were offered a less good mortgage rate than new customers. I am one of those who lost. Do I have to contact them to claim compensation? JD, Londonderry.</p>A</b> The Nationwide says it is initiating action and will be contacting all affected borrowers. You don't need to do anything.</p>Q</b> I visited Italy and tried to buy a newspaper using euro coins from the Irish Republic. The vendor refused to accept them. Presumably he was wrong?JD, Bristol.</p>A</b> Absolutely. "The whole point of the euro is that currency issued in one part of the euro-zone can be used elsewhere in it," says a European Commission spokeswoman, and that applies equally to notes and coins, which bear the issuing country's identification. If you want to lodge a formal complaint against the retailer you can do so through the London office of the European consumer council, on 020 7833 2181. </p></preform>

Independent Partners; request a free guide on NISAs from Hargreaves Lansdown

News
scienceExcitement from alien hunters at 'evidence' of extraterrestrial life
Life and Style
Customers can get their caffeine fix on the move
food + drink
News
newsRyan Crighton goes in search of the capo dei capi
Extras
indybest

PROMOTED VIDEO
Arts and Entertainment
Actors front row from left, Jared Leto, Jennifer Lawrence, Meryl Streep, Ellen DeGeneres, Bradley Cooper, Peter Nyongío Jr., and, second row, from left, Channing Tatum, Julia Roberts, Kevin Spacey, Brad Pitt, Lupita Nyongío and Angelina Jolie as they pose for a
film
Sport
sport
Life and Style
techCould new invention save millions in healthcare bills?
Sport
David Moyes gets soaked
sport Moyes becomes latest manager to take part in the ALS challenge
Voices
A meteor streaks across the sky during the Perseid Meteor Shower at a wind farm near Bogdanci, south of Skopje, Macedonia, in the early hours of 13 August
voicesHagel and Dempsey were pure Hollywood. They only needed Tom Cruise, says Robert Fisk
News
peopleEnglishman managed quintessential Hollywood restaurant Chasen's
Life and Style
food + drinkHarrods launches gourmet food qualification for staff
Arts and Entertainment
Michael Flatley prepares to bid farewell to the West End stage
danceMichael Flatley hits West End for last time alongside Team GB World champion Alice Upcott
Life and Style
Horst P Horst mid-fashion shoot in New York, 1949
fashionFar-reaching retrospective to celebrate Horst P Horst's six decades of creativity
News
Members and supporters of the lesbian, gay, bisexual, transgender (LGBT) community walk with a rainbow flag during a rally in July
i100
Life and Style
Black Ivory Coffee is made using beans plucked from elephants' waste after ingested by the animals
food + drinkFirm says it has created the "rarest" coffee in the world
Life and Style
news

As Voltaire once said, “Ice cream is exquisite. What a pity it isn’t illegal”

Life and Style
food + drinkThese simple recipes will have you refreshed within minutes
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Market Administrator (1st line Support, Bloomberg, Broker)

    Negotiable: Harrington Starr: Market Administrator (1st line Support, Trade Fl...

    Service Desk Analyst (Windows, Active Directory, ITIL, Reuter)

    £35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...

    Data Support Analyst (Linux, Solaris, Windows Server, Reuters)

    Negotiable: Harrington Starr: Data Support Analyst (Linux, Solaris, Windows Se...

    Helpdesk Support Engineer (Windows, MS Office, Exchange)

    Negotiable: Harrington Starr: Helpdesk Support Engineer (Windows, MS Office, E...

    Day In a Page

    All this talk of an ‘apocalyptic’ threat is simply childish

    Robert Fisk: All this talk of an ‘apocalyptic’ threat is simply childish

    Chuck Hagel and Martin Dempsey were pure Hollywood. They only needed Tom Cruise
    Mafia Dons: is the Camorra in control of the Granite City?

    Mafia Dons: is the Camorra in control of the Granite City?

    So claims an EU report which points to the Italian Mob’s alleged grip on everything from public works to property
    Emmys look set to overhaul the Oscars as Hollywood’s prize draw

    Emmys look set to overhaul the Oscars as Hollywood’s prize draw

    Once the poor relation, the awards show now has the top stars and boasts the best drama
    What happens to African migrants once they land in Italy during the summer?

    What happens to migrants once they land in Italy?

    Memphis Barker follows their trail through southern Europe
    French connection: After 1,300 years, there’s a bridge to Mont Saint-Michel

    French connection: After 1,300 years, there’s a bridge to Mont Saint-Michel

    The ugly causeway is being dismantled, an elegant connection erected in its place. So everyone’s happy, right?
    Frank Mugisha: Uganda's most outspoken gay rights activist on changing people's attitudes, coming out, and the threat of being attacked

    Frank Mugisha: 'Coming out was a gradual process '

    Uganda's most outspoken gay rights activist on changing people's attitudes, coming out, and the threat of being attacked
    Radio 1 to hire 'YouTube-famous' vloggers to broadcast online

    Radio 1’s new top ten

    The ‘vloggers’ signed up to find twentysomething audience
    David Abraham: Big ideas for the small screen

    David Abraham: Big ideas for the small screen

    A blistering attack on US influence on British television has lifted the savvy head of Channel 4 out of the shadows
    Florence Knight's perfect picnic: Make the most of summer's last Bank Holiday weekend

    Florence Knight's perfect picnic

    Polpetto's head chef shares her favourite recipes from Iced Earl Grey tea to baked peaches, mascarpone & brown sugar meringues...
    Horst P Horst: The fashion photography genius who inspired Madonna comes to the V&A

    Horst P Horst comes to the V&A

    The London's museum has delved into its archives to stage a far-reaching retrospective celebrating the photographer's six decades of creativity
    Mark Hix recipes: Try our chef's summery soups for a real seasonal refresher

    Mark Hix's summery soups

    Soup isn’t just about comforting broths and steaming hot bowls...
    Tim Sherwood column: 'It started as a three-horse race but turned into the Grand National'

    Tim Sherwood column

    I would have taken the Crystal Palace job if I’d been offered it soon after my interview... but the whole process dragged on so I had to pull out
    Eden Hazard: Young, gifted... not yet perfect

    Eden Hazard: Young, gifted... not yet perfect

    Eden Hazard admits he is still below the level of Ronaldo and Messi but, after a breakthrough season, is ready to thrill Chelsea’s fans
    Tim Howard: I’m an old dog. I don’t get too excited

    Tim Howard: I’m an old dog. I don’t get too excited

    The Everton and US goalkeeper was such a star at the World Cup that the President phoned to congratulate him... not that he knows what the fuss is all about
    Match of the Day at 50: Show reminds us that even the most revered BBC institution may have a finite lifespan – thanks to the opposition

    Tom Peck on Match of the Day at 50

    The show reminds us that even the most revered BBC institution may have a finite lifespan – thanks to the opposition