TSB Loan offer

Angryharry
Angryharry Posts: 2 Newbie
in Loans
TSB proudly advertise a personal loan rate of 2.9% which gets them to the top of most comparison websites and one of the first offers you’ll come across when searching “cheap loans”. Don’t be fooled by this however its all a con trick! As a loyal customer of over 15 years, with an impeccable credit rating and a considerable amount disposable income, I failed to get an offer which came anywhere close to that impressive 2.9%. After logging into my account and filling out their loan calculator I was unable to receive a personalised rate of anything below 15%! That despite trying every single combination of amount, term and loan purpose. I strongly suggest that you ignore this headline loan offer and save yourself the time and effect of being disappointed. I did phone their loan help line but they were unable to tell me exactly what criteria would result in a personalised offer of 2.9%.
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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    It's not a con. You simply don't meet the criteria that 51% of successful applicants did.

    Their criteria will remain confidential.

    It would be worth reviewing your credit files to see if there is anything obvious which could be fixed, or causing the issue.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,581 Ambassador
    First Anniversary First Post Name Dropper I've been Money Tipped!
    Maybe you should check noddle and see if there is anything on there which may affect your applications. Have you recently moved?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • nic_c
    nic_c Posts: 2,928 Forumite
    Name Dropper First Post First Anniversary
    At least the loan calculator was showing you the interest rate before an application and hard search. A lot of companies advertise the typical APR and only tell you after a full application has been done that its approved but at a higher APR. You don't say the amount or length. On the generic calculator that shows 2.9%, but change it to £7K over 7 years and it zooms to 14.9%
  • zippygeorgeandben
    zippygeorgeandben Posts: 1,273 Forumite
    Name Dropper First Anniversary First Post Debt-free and Proud!
    If you see the word represntative then it basically means that 51% of the applicants will be successful at getting the loan at that rate advertised.
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    zippygeorgeandben wrote: »
    If you see the word represntative then it basically means that 51% of the applicants will be successful at getting the loan at that rate advertised.
    Not quite. At least 51% of successful applicants will get the 'advertised' representative rate. Up to 49% of successful applicants will be offered a different rate.
  • Steve_GP220
    Steve_GP220 Posts: 62 Forumite
    First Post First Anniversary
    First Direct do this. They absolutely splash their 3.2% all over their website. I've been with FD for YEARS and have never managed to get the lowest rate. And I've done loans of £25k, £20k, £10k etc etc and the best rate I have managed is 7.5%. I've never defaulted, never missed a payment. I kind of understand them luring people into the process with the lower rate splash but wouldn't they be better off say advertising the intermediate rate of 7.5% and then 'surprising and delighting' those they consider suitable, with the lower rate?

    Its like the FD mortgage calculator - mean have you seen it? Put in what you earn and see what they 'could' lend as a mortgage. What is the point of that calculator? No-one will ever get those loans.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Steve_GP220 wrote: »
    wouldn't they be better off say advertising the intermediate rate of 7.5% and then 'surprising and delighting' those they consider suitable, with the lower rate?

    Which rate would you advertise, when they may have 6 or more tiers?

    The majority rate is the only one that makes sense.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    The outrage at being charged a higher rate.

    Let's go back to the good old days where anybody who didn't qualify for the headline rate got a straight forward decline.

    Much more satisfactory!
  • mo786uk
    mo786uk Posts: 1,379 Forumite
    That is not quite correct - it has to be a rate that they reasonably believe 51% of applicants will get - as such it could be that 51% don't actually get that rate

    the law is seen here

    https://www.handbook.fca.org.uk/handbook/glossary/G3354.html

    No member of the public would actually ever know if the company was being dodgy as the regulator would need them to demonstrate why they held a belief 51% of people would get that rate.
  • Nebulous2
    Nebulous2 Posts: 5,105 Forumite
    First Anniversary Name Dropper First Post
    A clue is in your comment about them being at the top of the comparison charts. That makes them desirable to a lot of people "with an impeccable credit rating and a considerable amount disposable income."

    In other words they can be very picky.
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