Loans - not getting the advertised APR rate

loopa1

Hi all

After consulting with Martin's best buys guide for a £5,000 loan - I phoned Sainsbury's finance given that they were offering the lowest APR at 7.9% if you have a nectar card - which I do.

So I filled out their application online and was then sent an email requesting that I call them to discuss whether or not my loan applications had been approved.

After confirming my details, income and expenditure, the person I was speaking to confirmed that they could not offer me the loan at 7.9% but instead, it would be at a rate of 10.9%. When I asked why it was different to what's advertised, she said she couldn't give me any specific details because "this was what the system was telling her".

Now I've applied for a loan with another loan provider, but I'm conscious of applying for loads at the same time as I don't want to take the hit on my credit rating.

My question is - is can Sainsbury's do this? How can they advertise 7.9% but then tell me it's 10.9% ???

Many thanks.

withabix

loopa1 wrote: »

My question is - is can Sainsbury's do this? How can they advertise 7.9% but then tell me it's 10.9% ???

Yes, this is normal with all companies.

The advertised rate will say TYPICAL APR 7.9% and some small print somewhere will say that 'actual APR offered will be subject toindividual circumstances' or something similar.

Extant

The typical rate just means that at least 66% of customers must get that rate. You're just unfortunately part of the other 34%.

The_Consumer_Credit_(Advertisements)_Regulations_2004 wrote:

"the typical APR" is an APR at or below which an advertiser reasonably expects, at the date on which an advertisement is published, that credit would be provided under at least 66% of the agreements he will enter into as a result of the advertisement.