The Banking Ombudsman has rejected a complaint from a borrower after a bank took three weeks to reject a loan application.

The customer had initially given wrong information in their application and had received an automated provisional acceptance.  However, when the correct information was provided to the bank it reassessed the loan against its lending criteria and rejected the application.

The customer complained about the three week delay and said that, as interest rates rose sharply over that period, they could have secured a cheaper loan elsewhere if the bank had acted quicker.

The Ombudsman said the bank was entitled to apply its lending criteria and if the customer had given the correct information initially the bank would have rejected the application immediately.  The bank was not liable for the customer’s error.

If you have a banking issue it pays to take advice from a professional experienced in the area.


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Alan Knowsley