Bloomin Abbey!!!

Jemmie

Hi

I applied to Abbey to increase my current loan to consolidate another loan with Northern Rock. The rate I applied for was 7.9%. Today I received the paperwork through to say that my application was successful but the rate was based on 13.3%. So misleading! Apparently this is based on credit rating - most annoying when I have had a loan with them for 4 years and not lapsed on one payment.

Will it now go against me if I don't accept their offer and try to apply somewhere cheaper? Will other companies do the same thing?

I'm most annoyed!!!:mad:

Jem

HAMHAMHAY

Hi. As You Know The Promotional Rate For Loan That All Banks Advertise For(for Eg 6.9 % Or 7.9%) Are Only For People With Unblemished Credit Rating.so Obviously Abbey Must Have Gone Through A Credit Scoring System For Your Application.
At This Time With Credit Crunch Biting I Would Suggest To Stick To Ur Abbey Loan.
Elsewhere Might Be Higher Rate,and Itsnot Advisable To Apply Somewhere Else Cause They Will Do Another Credit Search And That Will Ad Up To Your Credit File Again Reducing Ur Score

mrposhman

Had the same thing with Natwest. I'm going throught the complaints procedure as i was told that I would be borrowing at their internal rate and wasn't told that it would change. My current loan with natwest is at 7.9%, this would have increased to about 9.5% but the paperwork came back at 15.9%. I wanted the loan to pay my overdrafts off yet with this "help" from the bank (they instigated it) I would have ended up paying MORE in interest than leaving as it was.

I went to Nationwide who I also have a loan with to pay this one off and take an extension. I got this and was told the rate was 8.9%, I asked whether this could fluctuate and was told no as they want to be different, ie. same rate for everyone. Got the paperwork through and it was at 8.9%.

Job done!! Still waiting for Natwest, been waiting 5 weeks now for an answer!! 3 more weeks and I'm going to the FOS.

chambta

Understand your frustrations mrposhman but Natwest have done nothing wrong. If you don't want it don't take it.

minimike2

"Price for Risk" is a common practice amongst lenders now.

Thats just the way it is. Its creeping in more and more to mortgages now too.

mrposhman

chambta wrote: »

Understand your frustrations mrposhman but Natwest have done nothing wrong. If you don't want it don't take it.

I'm not sure if I agree, if you apply for a loan that you know has a "typical" APR then you can't make a complaint about the loan.

My point is, I had phoned up to set up a standing order and got transferred through to another department who would like to review my account and they suggested using internal borrowing as a new loan, paying off my old loan with this and it would benefit me. They never mentioned once the words typical APR and thats what I wanted to make the claim about.

Besides, when someone suggests that this would reduce my interest payments (and the original loan would have) then this would be of benefit and show that banks do try to help sometimes though the interest rate I was then quoted would have led me to pay more interest on this new loan than I would have on my original loan and my overdrafts.

Surely the banks have a duty of care to their customers specifically surrounding bank instigated reviews of accounts?

WallyMan

The rate you are actually offered will vary depending on your personal situation which is assessed via your credit score as determined by Abbey. Headline rates are great at getting you to apply in the 1st place but as you have found you may not be offered this rate.

All lenders are introducing more and more systems to provide "Risk Based Modelling" so they can tailor rates and loan amounts according to their perception of Risk