Beware of rates offered on the net

Grommit07

A couple of days ago I applied for an Alliance & Leicester (Santander) loan on a link from this site. The APR advertised was 7.8%, I completed the form and submitted it. I immediately received a receipt via e-mail from Santander telling me that a decision would be made soon. My application was successful and received the paperwork today, Unfortunately the rate had changed to 14.9% with and increase of £15 per month. Santander are along with money supermarket.com:mad: conning people into thinking they have the cheapest rate, until the paperwork arrives. Upon contacting Santander I was told this was the rate offered following credit checks. I own my own home, have no outstanding loans, have had several loans previously and never missed a payment, have been married for over 26yrs, have no dependant children and have a secure job. what a con.

dmg24

Perhaps you need to read what you are applying for?

*8.9% APR is our typical rate for loans £7,500 to £14,950 entered into through this source. We will review your past credit history and other personal details and the actual rate we offer may be higher depending on our assessment of your personal circumstances and financial behaviour.

Crabman

dmg24 wrote: »

Perhaps you need to read what you are applying for?

I'm not really understanding your point - the problem is they don't tell you the rate until after the credit check:

http://www.moneysavingexpert.com/news/cards/2009/09/treasury-committee-to-probe-credit-application-trap

That the Treasury Select Committee launched an inquiry into credit application traps infers that it isn't simply a case of needing to 'read what you are applying for':

http://blog.moneysavingexpert.com/2009/11/06/on-parliament-tv-%E2%80%93-giving-evidence-at-treasury-select-committee/

Antispam

Thats a good point crabman

MSE_Martin

Hi

As we say in our cheap loans guide - all rates these days are rate for risk or 'typical' rate. Which means 66% of successful applicants get the typical rate the rest anouther one. As the links posted above show this is an outrageous situation I've been long campaigning against, but until they change the rules its difficult to contrast.

Martin