Treasury Committee launches inquiry into Credit Searches in conjunction with MSE

fairfaxkid

In the summer I visited my bank for the last 20+years Nat West for a loan. Advertised at 8.9% APR I was told I could only have 11.9% even thoUgh I had checked my own credit score and had excellent rating. I told them to hold it while I visited Halifax; only to be told that 11.9%
was excellent and to go for it. When I quizzed Nat West I was told it was because I had had a lot of hits recently on by credit record. This was only because; on MSE suggestion; I had just changed my car; house; contents & utility bills to other companies. I was told that this would be the case for the next 6 months! So basically we are stuffed everytime we switch providers? The only one making money at the moment are the banks:mad:

cakey

I applied for an RBS card in july, the rate was 0% for 9 month, then the rate chaged to 16.9%. i applied, i got aproved, and when i checked the paper work the rate has gone up to 24% for the remainder of the term. Now my big issue is, at the point of applying it asked me to give the details of the crads i wanted to transfer. They transfered my balances BEFORE they told me of the rate change hike. Can they do this????

baerbel

I gave up work 9 yars ago to bring up my son and have no income whatsoever. I do not claim benefits. I only use my credit card for small amounts and pay it off every month. Yet my credit card (Alliance & Leicester) limit keeps increasing and now stands at £9,000. I also keep getting blank credit card cheques which really annoy me.

PUREHOMES

I use internet banking and noticed I had a pre approved offer of a loan at 7.9%

I applied as this rate was lower than my current debts, with the idea of consolidating them.

When I got the paperwork through, it actually said 17.9% on it. I phoned to query this, and was told that 17.9% was the correct rate being offered to me.

cumbrialink

I have just applied for a Tesco personal loan, the rate advertised was a typical 8% I ended up paying 9.7%.
How why i dont know, i have no bad credit rating so i don't agree with typical rates.
I feel i am as good as the next person so why should i pay more
If its 8% it should be 8% and no more.

I do think its totally wrong.

I dont feel as bad as the person who got quoted 29% though that is daylight robbery.

Mark

cumbrialink

cumbrialink wrote: »

I have just applied for a Tesco personal loan, the rate advertised was a typical 8% I ended up paying 9.7%.
How why i dont know, i have no bad credit rating so i don't agree with typical rates.
I feel i am as good as the next person so why should i pay more
If its 8% it should be 8% and no more.

I do think its totally wrong.

I dont feel as bad as the person who got quoted 29% though that is daylight robbery.

Mark

ps Martin Lewis For Prime Minister there is no reason he would not get in

cakey

i got stung well an truly by virgin once. I applied for at loan at 9% to consolidate credit cards which were at 16%. i went through the whole process spoke to the under writers and he said he was pleased to offer me the loan at 19%!! i refused as this was more than my credit card rate, even though i refused to take the load it still shows on my credit report.. and the credit report doesnt show i refused only that i didnt take it... gutted

DeskBob

I currently have a loan with the Halifax, which I took out about 18 months ago.

I can't remember the exact rate advertised, but it was well below what I finally got the loan for (8.9%). At the time I applied to at least two other lenders who gave me higher quotes, both these were also well above the advertised rate.

This practice is unfair and wrong, and the system is also wrong, as each search puts a mark on your credit score. I know the banks want to protect themselves from people applying and cashing multiple loans, but there must be a better way.

Of course the danger of forcing banks to give one loan rate is that they may decide to just offer one high rate to everyone.

checjb

Applied for a £27K loan over 7 years. The rate stated on application was 8.0%, or 8.2% with an immediate payment break of two months. For personal reasons we took the payment break but the actual loan we got has a rate of 9.9% APR. Needless to say I will be paying it off as soon as possible.

As far as I know my credit history is clean as a whistle yet my rate was elevated for no stated reason.

C.

Bigal_2

I had an Egg credit card, dated back to early 2002. In 2005 they cancelled my account. I had never missed a repayment and always paid back the full amount.

At that time, 2005, I had taken advantage of an interest free 6 months special offer. I used the card as much as possible and at the end of 6 months paid off the balance of 5000 pounds.

Shortly afterwards, I got a call from Egg cancelling the account for no reason.

I found out subsequently that I was an "unprofitable" customer and that is why the account was closed. 2005 was when Citibank purchased Egg!