Banks and lenders in the UK process millions of loan applications every year. Yet, sometimes their decisions are so absurd they make headlines. In this article, we explain how algorithms and human errors lead to ridiculous outcomes—backed by real cases and surprising statistics.
A Cat as a loan guarantor
In 2019, a Londoner was denied a personal loan—until he accidentally listed his cat as a "co-owner of assets." The system suddenly boosted his credit score, and the loan was approved. The bank later admitted it was an automated glitch that misinterpreted pet ownership as financial stability.
Rejected for having a perfect credit score
In 2021, a Manchester man with a flawless credit score (999 out of 999) was denied a mortgage. The bank couldn’t explain the refusal at first, then suggested his score was "suspiciously high." After media backlash, the lender reversed its decision.
A Loan for a dead man
A UK bank accidentally approved a £15,000 loan in 2020 to a man who had died five years earlier. The automated system failed to cross-check the national death register. The family only found out when debt collection letters started arriving.
£50,000 loan… approved for a dog
As an experiment in 2018, journalists applied for a loan under a Labrador’s name, listing his "occupation" as "home security." Shockingly, an online lender approved it, highlighting flaws in automated finance checks.
UK loan rejection statistics
- 37% of UK loan applications were rejected in 2023 (UK Finance data).
- 15% of rejections were due to faulty automated systems.
- 1 in 10 borrowers found errors in their credit reports affecting approvals.
Key takeaway
Even the UK’s strict financial system has its quirks. If you’re unfairly denied a loan, always request an explanation—you might just uncover a bizarre mistake.
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