Asda Loan Scam

danmakem

OK it may not be a scam but it certainly feels like one.
Advertised as 7.4% apr, applied on line, application was accepted. Rec'd email to say go to website and complete the transaction - there was NO mention of any revised rate but on entering the site I noticed the APR had changed to a whopping 19.9%!!!
Phoned up and complained, got the usual blah blah about credit scoring.
OK, I'm employed full time, in receipt of 2 other incomes, have 6 figure collateral against my home, and substantial investments. About 2k on credit cards (interest free).
Checked my experian report which confirms this although it shows no one on electoral register at my address (this is total rubbish, vote every year and council have confirmed I'm registered at present)
ADSA loans? avoid or tread with care

_Andy_

No scam whatsoever. The issue here isn't Asda - you're not showing on your Experian file as being on the electoral role.
You need to look into that and rectify it rather than slating Asda.

Kavanne

meh, risk pricing is nothing new.

Premier_2

danmakem wrote: »

...Advertised as 7.4% apr,...there was NO mention of any revised rate...

Actually advertised as 7.4% apr typical

Note: The rate you will receive will depend on your personal circumstances at the time of application.

http://www.asdafinance.com/personal-loans.html

jonesMUFCforever

How much did you apply for?

Rafter

By law Asda have to offer 67% of applicants the advertised rate - the rest they can charge whatever they like.

You might find that Asda (or the bank involved) are cherry picking customers who apply with payment protection insurance, otherwise it would be almost impossible to make any money out of loans at 7.4% once you take into account the cost for the bank to source the funding, bad debts and operating costs.

R.

amj_2

Rafter wrote: »

By law Asda have to offer 67% of applicants the advertised rate - the rest they can charge whatever they like.

You might find that Asda (or the bank involved) are cherry picking customers who apply with payment protection insurance, otherwise it would be almost impossible to make any money out of loans at 7.4% once you take into account the cost for the bank to source the funding, bad debts and operating costs.

R.

Has anyone tried applying for such loans with PPI then a few months later cancelling the PPI?

_Andy_

amj wrote: »

Has anyone tried applying for such loans with PPI then a few months later cancelling the PPI?

Why bother doing that? the PPI won't affect the rate you obtain.

Gordon_T_2

Try E-sure. 6.2%!

danmakem

....for the comments.
Naturally, I've taken up the electoral register issue with Experian.
I'm reminded of the TV advert where the high(deposit) interest rate is said to hook the customers and a lower rate is applied asap. This is not very different in principal.
My issue is not just that the rate has changed but that the 2 emails I received asking me to complete did not mention the exorbitant rate. It was only when I logged in that the truth became clear.
So, an application emblazoned with "7.4%" APR, 2 emails not alerting the customer to the virtually tripled interest rate and no real explanation....is that acceptable? I don't think so, at best its sharp practice.

danmakem

Premier wrote: »

Actually advertised as 7.4% apr typical

Note: The rate you will receive will depend on your personal circumstances at the time of application.

http://www.asdafinance.com/personal-loans.html

yeah, thats fine but at least TELL ME you've moved the goalposts