"typical" rates

in Loans
5 replies 897 views
IdiophreakIdiophreak Forumite
12K Posts
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Hi All,

Just a quick whinge... :)

So I applied for a loan with Sainsburys yesterday, thanks to their advertised 8.1%.

Rang for my decision today, they said they'd lend, but at 12.1% instead.

I asked why this was, they said it could be down to the amount/duration of the loan, or my credit score.

Checked my credit score with Experian tonight (who they use) - 999/999 - not a missed payment to be seen, on the electoral roll, ages at the same address and so on.

So, clearly they just don't like the amount/duration of the loan proposed.

I demonstrated in the application that I can easily afford the repayments (earn decent money and live with my parents...) and I have a good credit score. So any "failing" is purely on their amount/duration criteria. Now, clearly, they can't know my score etc before I apply, but surely they knew right from the start that I was never going to get the 8.1% - and that being the case, shouldn't they have told me upfront, before going near my file?

The whole thing just seems like such a scam - Surely there's something in place that says they can't run checks on my file unless I ask them to for a certain product? I never asked them to run a check for a loan at 12.1%, which is, basically, what they've done, as they'd already decided I wasn't getting the 8.1%...

So, do we think it's worth complaining to the regulator, etc, or am I just being a tool? Is it worth applying to another lender, or do they all pull the same stunt?

Ta all!

Replies

  • Robert_Sterling_3Robert_Sterling_3 Forumite
    7.1K Posts
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    Perhaps it would be better if they had to say "from 8.1%".
    ...............................I have put my clock back....... Kcolc ym
  • BenLBenL Forumite
    3.2K Posts
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    They all offer rates from.........%. 66% of applicants have to get this rate if they state it is typical.

    Maybe they are only offering the rate to other customers on higher loan amounts or a certain perid or maybe they have used up all the low rate loans as we are at the end of the month.

    I hope the loan companies have to prove each month to FSA or ASA they are complying.
    I beep for Robins - Beep Beep
    & Choo Choo for trains!!
  • RafterRafter Forumite
    3.8K Posts
    As Ben says, only 2/3 have to be offered the typical - the rest can be offered whatever they like. Sometimes the typical is only for loans from £5k or from £7.5k as well.

    The experian score is not the measure that Sainsburys bank may be using either. Experian don't know what your salary is for example or how long you have been in your current job. It may be that sainsburys scored you down for these things and thinks you are higher risk than the typical applicant.

    R.
    Smile :), it makes people wonder what you have been up to.
  • IdiophreakIdiophreak Forumite
    12K Posts
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    BenL wrote: »
    Maybe they are only offering the rate to other customers on higher loan amounts or a certain perid or maybe they have used up all the low rate loans as we are at the end of the month.

    Yeah,I'm sure it's something like that - either way, I wish they were a bit more transparent about things (a transparent bank - tee hee) - I'm quite flexible with my requirements, so would change the term and/or loan amount if it meant getting the better rate.

    Oh well, have to find another bank that actually wants my custom, I guess :)
  • AnyAny Forumite
    7.9K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    Never mind Idiophreak, I applied for loan to my own bank through my own account, and even though I have long stable job, never ever missed payment and they can see in my account that I have over £650 for my own entertainment a month (that is after food, bills etc) they still wouldn't lend me AT ALL!!
    And they say "special rate 7.9% only for existing customers...".

    Is there 66% people in better position than me? At least you got something offered, I got declined! For the very first time in my life (no, sorry, lying... I got once declined 5yrs ago for my very first credit card..., but that's just because I didn't know how to play the system:-))
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