Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Angryharry
    • By Angryharry 31st Aug 17, 6:10 PM
    • 2Posts
    • 1Thanks
    Angryharry
    TSB Loan offer
    • #1
    • 31st Aug 17, 6:10 PM
    TSB Loan offer 31st Aug 17 at 6:10 PM
    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%.
Page 1
    • zx81
    • By zx81 31st Aug 17, 6:15 PM
    • 14,042 Posts
    • 14,728 Thanks
    zx81
    • #2
    • 31st Aug 17, 6:15 PM
    • #2
    • 31st Aug 17, 6:15 PM
    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
    • By enthusiasticsaver 31st Aug 17, 7:11 PM
    • 4,672 Posts
    • 8,767 Thanks
    enthusiasticsaver
    • #3
    • 31st Aug 17, 7:11 PM
    • #3
    • 31st Aug 17, 7:11 PM
    Maybe you should check noddle and see if there is anything on there which may affect your applications. Have you recently moved?
    5 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • nic_c
    • By nic_c 31st Aug 17, 7:27 PM
    • 1,078 Posts
    • 611 Thanks
    nic_c
    • #4
    • 31st Aug 17, 7:27 PM
    • #4
    • 31st Aug 17, 7:27 PM
    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
    • By zippygeorgeandben 31st Aug 17, 10:38 PM
    • 707 Posts
    • 882 Thanks
    zippygeorgeandben
    • #5
    • 31st Aug 17, 10:38 PM
    • #5
    • 31st Aug 17, 10:38 PM
    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.
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • YorkshireBoy
    • By YorkshireBoy 31st Aug 17, 10:56 PM
    • 29,527 Posts
    • 17,326 Thanks
    YorkshireBoy
    • #6
    • 31st Aug 17, 10:56 PM
    • #6
    • 31st Aug 17, 10:56 PM
    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.
    Originally posted by zippygeorgeandben
    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
    • By Steve_GP220 1st Sep 17, 1:34 PM
    • 31 Posts
    • 0 Thanks
    Steve_GP220
    • #7
    • 1st Sep 17, 1:34 PM
    • #7
    • 1st Sep 17, 1:34 PM
    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.
    • zx81
    • By zx81 1st Sep 17, 1:37 PM
    • 14,042 Posts
    • 14,728 Thanks
    zx81
    • #8
    • 1st Sep 17, 1:37 PM
    • #8
    • 1st Sep 17, 1:37 PM
    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?
    Originally posted by Steve_GP220
    Which rate would you advertise, when they may have 6 or more tiers?

    The majority rate is the only one that makes sense.
    • PeacefulWaters
    • By PeacefulWaters 1st Sep 17, 2:42 PM
    • 7,152 Posts
    • 8,806 Thanks
    PeacefulWaters
    • #9
    • 1st Sep 17, 2:42 PM
    • #9
    • 1st Sep 17, 2:42 PM
    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
    • By mo786uk 1st Sep 17, 7:03 PM
    • 1,345 Posts
    • 571 Thanks
    mo786uk
    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
    • By Nebulous2 1st Sep 17, 8:12 PM
    • 1,624 Posts
    • 985 Thanks
    Nebulous2
    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.
    • zippygeorgeandben
    • By zippygeorgeandben 1st Sep 17, 9:55 PM
    • 707 Posts
    • 882 Thanks
    zippygeorgeandben
    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.
    Originally posted by YorkshireBoy
    Ahh this is why I rarely post to advise! Scared of being wrong, like in this case!
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • Steve_GP220
    • By Steve_GP220 2nd Sep 17, 8:30 AM
    • 31 Posts
    • 0 Thanks
    Steve_GP220
    Which rate would you advertise, when they may have 6 or more tiers?

    The majority rate is the only one that makes sense.
    Originally posted by zx81
    Like I said really - the intermediate rate! They do that 3.2% for the chosen few, I'd bet in the real world, that more get offered the 7.5% and then a few get the 15% plus. I'm not sure what you mean by 6 tiers? Maybe my view is simplified somewhat - but in my experience FD (and I use them as my example because I have many years experience with them) those looking for a personal loan only get to see 3 rates.
    • zx81
    • By zx81 2nd Sep 17, 9:07 AM
    • 14,042 Posts
    • 14,728 Thanks
    zx81
    51% get the headline rate, so no, fewer get 7.5%.

    By 6 tiers, I mean that some lenders have multiple downsell rates, according to risk.
    • Steve_GP220
    • By Steve_GP220 2nd Sep 17, 10:14 AM
    • 31 Posts
    • 0 Thanks
    Steve_GP220
    51% get the headline rate, so no, fewer get 7.5%.
    Originally posted by zx81
    I'd love to see irrefutable proof that 51% get the headline rate. How would we ever know that? How would we ever check? And yet, there is advertising kudos in splashing that low rate over the site.
    • zx81
    • By zx81 2nd Sep 17, 10:22 AM
    • 14,042 Posts
    • 14,728 Thanks
    zx81
    All I can tell is that I've not seen a lender who has tried to break it.

    What I have seen is the serious concern when the figure falls below 51%. That then leads you to have to relax your risk and acceptance criteria and accept applicants at your headline rate, who otherwise would not have made the cut.

    I can't think of a lender who would take the gamble, though that's not to say there isn't one out there.
    • Tarambor
    • By Tarambor 3rd Sep 17, 9:04 AM
    • 1,530 Posts
    • 1,054 Thanks
    Tarambor
    I'd love to see irrefutable proof that 51% get the headline rate. How would we ever know that? How would we ever check? And yet, there is advertising kudos in splashing that low rate over the site.
    Originally posted by Steve_GP220
    The FSA would know it. The banks are required to keep records.
    • Angryharry
    • By Angryharry 4th Sep 17, 6:19 PM
    • 2 Posts
    • 1 Thanks
    Angryharry
    Many thanks for all your replies. Do think it's possible that my credit rating might be effected by the fact I've only been in my current employment for 3 years?
    • zx81
    • By zx81 4th Sep 17, 6:48 PM
    • 14,042 Posts
    • 14,728 Thanks
    zx81
    3 years is more than sufficient to show stability to lenders.
    • jimbolee
    • By jimbolee 7th Sep 17, 7:40 PM
    • 1 Posts
    • 1 Thanks
    jimbolee
    M&S doing likewise
    I have just had a similar experience with M&S - offering an eye-caching 2.8% APR *representative*

    Experian tells me my score is "999"
    My annual income is well over 50k
    I am married, my wife works
    My mortgage has 6 years left
    I have about 180k equity in my house
    I have lived in same house for 16 years
    Plenty of disposable income
    I have not applied for any other loans for years
    Current job for over 3 years (continuous employment for over 20 years)
    etc, etc.

    And yet I am offered 5.4% on application for 13k to buy new car.

    The trouble as I see it is the incentive to lenders is to advertise aggressively with these low rates to top the charts. But it affects your credit score if you apply and do not get the headline rate and then want to rethink. You do that for 5 or 6 loans and you start to reduce your score.

    Would it not be better for the FSA to force banks to show a "range" of APR's that 80% or even 90% of applicants will get? The 51% rule is not high enough in my view.

    Then perhaps the rate "range" may have to be advertised like this: "90% of our successful applicants will get a rate between 2.8% and 4%".

    I think the word "representative" is too misleading.
    Anyway - just a thought.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

76Posts Today

2,851Users online

Martin's Twitter
  • I believe I can boldly go where no twitter poll has gone before https://t.co/HA0jC92gAK

  • OK I'm wilting to public pressure and there will be a star trek captain's poll at some point next week

  • I can get that. My order is 1. Picard 2. Janeway 3. Kirk. Too early to say where Lorca will end up (or would you? https://t.co/kawtCOe9RA

  • Follow Martin