Not impressed with Lloyds TSB

manicdays

they have sent me 2 mail shots about getting a loan. So when I got the second I had a good think & did my sums & decided to go for consolidation, 1 payment, 1 lot of interest.
Through the mail shot & the call it would seem that apart from formalities the loan was approved.
They asked for copies of my other bank statements cos I work for another bank they needed to see them, obviously the other bank makes me bank with them for my wages!
So I called them today after applying on Friday & being told it would take 30 mins to sort it to suddenly be told I've not go it.

How will that look on my credit rating? Also why bother sending out basically approved loans if we can't actually have them?

Thanks Lisa

Old_iron_balls

I think they just go off past back account history and affordability.
Thats what I was told a couple of years ago by TSB.
Times may have changed though so please dont take my word for it. Why not give them a call ?

Xbigman

Even pre-approved, cheque already written, money reserved, 'here you are mate' loans have the phrase 'subject to status' on them somewhere.

How will it look on your credit rating? It won't, unless you plan to apply for 3 or 4 more loans in the next 6 months it will have no effect. Remember, you never considered this loan until they wrote to you so you have actually lost nothing.
Regards



X

miss_lisalou

You can't single out LTSB, I'm sure the Bank that you work for does exactly the same thing as well... or worse still

manicdays

I'm sure the bank I work for does the same thing, all banks are the same!!! I have banked with Lloyds TSB for years though & have never had a problem with them! I am being cynical & wondering if they just don't like me working for opposision

matthew6476

I used to work for LTSB, selling loans and stuff, and agree with you, that they should not dangle carrots in front of you, but I can see what they would have done. When loans are applied for at LTSB, what they do is look at whether or not the loan is affordable or not. This involves complex sums that deternine if, after taking out the loan, you can afford it, and your other commitments like rent/mortgage, gas, leccy etc etc. Part of this assumes that you need to have a certain amount to live on, which is dependant on your status ie a student (who they would never lend to anyway) would need £300 pcm to live off, a couple living together would need £500 to live off.

What this system fails to take into account, is that people tend to budget for things like loans, and if they have wildly overspent each month in the past, or gone over budget each month, even only slightly, then the bank assumes that this trend will continue for ever. It assumes that people spend the same each month, which they dont, and as a result it means that some people who can easily afford say £150 pcm on a loan, look, on paper at least, that they cant afford it.

If you feel the loan is easily affordable, then the lender can appeal to an internal department to see if it can be approved by a specialist lender, but in some cases they wont do this for the following reasons:

The loan is not taken with PLP, as this greatly increases the value of the business to both the advisor and the bank

The loan is for a relatively small amount

The loan is to refinance LTSB debts (OD, credit card, existing loan) as the advisor gets no credit for this, even if you borrow £25000

In my experience, the advisors at LTSB are only in it for themselves, and sometimes, the needs of the customer comes second to how many "points" they have got that day or week. (this is not to say they are all like this, but the days of the "friendly old bank manager" are long gone - although he does still exist in places!)