Banks memory

How long is the banks' memory?
If you had bad dealings with them 15-20 years ago would they still decline you based on something that happened so long ago?

 

What happened, exactly?

 

credit card default

 

Probably not a big deal at this point, it depends on the severity. If you want to be on the safe side, simply use a different lender.

I recently submitted an application that got red flagged by the CBA. They didn't even look at the application, instead I received a phone call from my business manager. He said something had happened with this client over a decade ago. He didn't know what it was, but indicated that the CBA wouldn't ever consider lending money to him. Even the client didn't know what it was. Other lenders have had no problem with this client.

 

Yep

I had one client who owed a bank money from 10 years ago. Didn't tell me, then we applied for a loan with the same bank. declined. Even though debt unenforceable now

 

This was more like 15 years ago but yes I believe it. So their memory is FOREVER??

 

Did you pay it off eventually?

 

not paid off. Several years later I applied for a credit card with a bank that is a subsidiary of that bank and it was approved no problem.
Example St George is owned by Westpac. How does that work? Do subsidiary banks have access to past defaults info of main bank?

 

I think St G is not a subsiduary - its a separate brand under the same bank so they have access to each others systems as they use the same system.

Not sure about CBA and Bankwest though

 

Most lender have internal client scores for this reason, if it's going to be an issue why not just use a different bank for the loan? Plenty of choice out there

 

Sorry, but in that case, I'm very much of the opinion that the bank shouldn't lend to you again. If I was the bank, I wouldn't ever remove back marks for unpaid defaults.

 

Why not?

 

Or....here's a thought....PAY IT OFF.

 

Yes absolutely - I missed the bit where OP mentioned they haven't paid it
However even when paid the bank won't forgive/forget what was done in the past and it would be best to go with an alternative lender.

 

It's really hard to know. My first thought was that 15-20 years is way too long for it to be an issue....but banks are ruthless and do have internal credit scoring....I just don't know how far back it would go.

As mentioned above - if you're concerned then might be best to go with another lender.

Cheers

Jamie

 

It was tough at that time. Divorce and illness at the same time.

 

Has the divorce been dragging on for 15 years?

 

Sometimes its long - I've had stories similar to what @Peter_Tersteeg has mentioned.
Depends on the bank too.
If you have unpaid defaults though - that does make lending far more tricky across the lender spectrum.

 

Given that the default was 15 - 20 years ago it's extremely unlikely to still be showing on the credit file, meaning other lenders would likely never know about it*.
I'd be more concerned about trying to use the same lender and getting declined due to their internal credit scoring/checks.

*I'm not advocating not paying debts

 

If a lender declines an application, might that be put on the credit file, thus bringing to light matters that happened 15-20 years ago?