**warning about tesco loans**

cleveden

For everyone looking to Tesco for a loan - before you get all excited please read below.

My partner with a good credit rating applied for an £8,000 Tesco loan.

1) Applied online Monday 9th August 2010
2) Had a phone call within the hour to say had been accepted.
3) Contract came next day. Signed, returned 1st class mail.
4) Phone call same day to confirm we wanted loan and that would be in account within 14 days.
5) Letter on Friday 20th August 2010 saying "Tesco can not offer her a loan". (no telephone number on the letter)

6) She phoned Tesco after hunting for a telephone number and they simply stated the content of the letter.

In the current financial climate I think it is very harsh for a company like Tesco to be telling people that have been accepted for a loan on the TELEPHONE and then just let them send them a LETTER telling them that actually, we're not giving you a loan, after we'd returned the signed contract.

A very upsetting day.

Beast

Was the first call 'Accepted' or 'Accepted in principle' ?

BenL

I think Tesco have found out some other credit agreements that your partner had not notified them of on the application.

I had similar wit Tesco but at point 5 I got a phone call from someone instead of a letter. I explained that my old car finance had been paid off and settled, just the records at the credit reference place not yet updated.

They were fine with this and sent the money through.

The other option is that when they have been doing the fraud prevention checks some data does not match or there is a marker against your partner. If the salary your partner has put down on the form for instance is a lot different to the last time they applied for any credit this would be thrown up as a possible fraud attempt.

Ben

Rafter

As Ben says.

There must have been some problem at the final checking stage. Suggest your partner gets a copy of her credit record from experian and/or equifax and checks if everything is accurate.

If so, call Tesco up and ask for the application to be manually reviewed as you think there might have been an error.

If the £8,000 would take your partners borrowing in total to more than 50% of income or the payments would be a significant proportion of her 'disposable' income it might be that Tesco simply do not believe that this size of loan would be affordable based on their assessment of your partners income and outgoings.

Good luck

R.