[Question] Loan Application declined - No Landline at work.

[Nadz]

Good Day

I applied for a loan through a certain bank and they let me know that my application was decline due to the fact that we do not have a land line at work, I work in an industrial area and the phone lines keeps getting stolen so my boss cancelled our land line and we got a maxi phone, which runs on a sim card.

I looked on the internet and found a lot of people complaining about the same thing, is this a new law on the credit act or new legislation or are the banks just being difficult?

[Dave A]

First I've heard of it, but after doing a Google search it looks like it's a problem people run into in the UK too.

Interesting that you post this in the NCA section - a credit provider discriminating against a person or entity because they don't have a landline telephone might be worth flying past the ombudsman for a ruling.

From a practical point of view - try some other banks. I doubt it's the sort of thing that they'll all be applying in their criteria and credit risk assessment.

I kinda understand why they might see it as a signal of sorts though. Having a landline implies a little more permanence, stability and traceability. Hard to see how it can be justified as an "instant fail" signal though.

[sterne.law@gmail.com]

Given that it is landlines at work it may hold up on the basis that it discriminates but is not unfair discrimination. There is some logic thought, I.e stability, not fly by night etc.
As an absolute disqualifier it seems absurd, particularly if you consider I can get a neotel pay as you go for the purchase of handset, about R600. I keep my number even if I'm not buying airtime. Pretty easy to stabilise the business.