Dirty Dealings and hidden agendas?????

Vector_2

I recently followed a link from this site and applied for a loan of £7.5K from Yourpersonalloan.com. The amount of £7.5K (for a used car) is well within our means but we were refused by email.

Literally within minutes of receiving the refusal email I got a call from Freedom Finance who had been asked to contact us as appointed “Brokers” to see if they could assist in offering us a loan. After a bit of discussion I was told, “congratulations, we have some good news, you have been accepted by Black Horse, we will put you through to them”. I spoke to Black Horse and they subsequently offered me the loan but at a rate of 13.9%. We had applied at the advertised rate of 7.3% with yourpersonalloan. I know that you are not guaranteed to get that rate but we are looking at paying almost double with Black Horse!

Obviously concerned that something was wrong I then purchased my credit report from Equifax which showed no problems at all. I have minimal outstanding debt and EVERY payment has been made on time, I have not got any “black marks” and I have never been in arrears on anything or had any judgements etc. There have been 3 applications for credit on my file in the past 12 months.

So I am really at a loss as to why I have been turned down.

Now being a cynical sod I am wondering if this is a commonly used ploy by lenders and their “associates” to try and charge people a higher rate. Both Black Horse and Freedom were also pushing very hard for me to take the loan over a longer period as well. I am sure people in a similar position would think, “oh no I have been refused but thank goodness for Black Horse, (or whoever) a Knight in shining armour that has saved the day” and take out the loan at the higher rate.

Cynical or realistic?

Has anyone else experienced similar?

McKneff

Realistic!!! it never ceases to amaze me the ploys these financial people go to to get as much money out of the as many people in the shortest possible tme.

robnye

did you by any chanc eturn down payment protection?
a few years ago, i tried to apply for a 7% loan, everything was going swimmingly until they asked did i want payment protection.... i said no, they then changed their tact and insisted on reading out their script relating to what it covered, to which i still said no, came to the end and was told, i am pleased to offer you the loan at 11%....... go forth and multiply i said and promptly went elsewhere
to this day i am convinced that it was due to me not taking out their payment protection

nb: i fortunately dont have any blots on my credit history, that would have caused them to offer a higher interest rate

Vector_2

I did turn down the Black Horse payment protection after he had given me 5 minutes of spiel, I never intended on taking it anyway!

What annoyed me further though was that the guy at Black Horse said there was nothing wrong at all with my credit file which only makes me even more convinced it’s a conspiracy to get more money out of people!

jonesMUFCforever

Why did you not approach your bank where your salary goes into?

Personal loan business is very competitive and most have departments that branches can refer to match or better a deal with a competitor.

Vector_2

jonesMUFCforever wrote: »

Why did you not approach your bank where your salary goes into?

Personal loan business is very competitive and most have departments that branches can refer to match or better a deal with a competitor.

I naively thought I wouldn't have a problem!

I have now applied to Abbey with whom I bank, not had a response yet though.

swebb

Vector - if you see my post earlier today, I am in the same boat. Now sorted with Direct Line at 8.1% - wish I'd just gone straight to them. I will get that call on Tuesday from Black Horse. unless they can better 8.1% (which they won't) it will be a short conversation!

mrposhman

try nationwide. When I had a similar problem with my own bank (natwest) I went to them and they were as their slogan suggests (we like to be different) they don't offer the advertised rate and then change it, they will just offer you that actual rate

Dave_T_7

It is quite normal for a loan provider to pass your details to a broker if you are declined. This means that the broker will try and find a company which will accept you.

Companies don't just look at your credit rating when making a decision, they will look at your overall profile (employment history, income and expenditure etc.) so don't think just because you have a clear credit rating that you will be accepted. That is a common mistake people make.

You were declined by the original provider, however accepted by a secondary lender through the broker.

Hope this helps.