Personal Loan APR jump...

Campbell1_2

Hi there, I hope someone can help me.

Back in mid-December I applied for a Loan with Nationwide. The APR was competitive at 7.3%. I received the agreement through, and returned before christmas.

Nationwide required more information from me, which is fine, but due to the holiday season, they didn't get this message to me until 31st December. I phoned them back, when they reopened on the 5th January, and sent off the appropriate details. I assume Royal Mail were still recovering from the backlog and Nationwide didn't receive the info until it was too late - my loan offer had expired it's 28 day period. They sent a letter back thanking me for additional info but the loan offer had expired but feel free to apply again.

I was in no rush for the loan, so I didn't apply again until a few nights ago. While they still stated 7.3% APR, after I input my details, it jumped to 9.9% APR. I wasn't happy, but concluded it must be from my earlier application (not refusal).

As Nationwide were no longer competitive, I decided on Santander who also offered 7.3%, that went through fine, until the agreement arrived this morning, stating 14.9% APR!

Sure enough, I checked with Nationwide's website again and their offer is now at 14%. Nationwide doesn't do a credit check until you apply, but obviously Santander does, so, because of two credit checks in a short period of time, I assume it has lowered my credit score, hence the spiralling APR.

I always believed I had an excellent credit score (although I've never checked credit expert or anything) so I'm now at a loss at these uncompetitive quotes.

Is there anything I can do? I'm not prepared to pay over the odds for a loan, when I was initially offered a good deal, but only because of the holiday season it has put me on the back foot.

Thanks for any help.

chalkie99

Not much different than me going into Asda before Christmas and seeing coffee at a £ a jar cheaper than it is now.

They are running a business to make a profit and can charge what they want and vary prices when they want.

Not sure there is anything you can do, sorry.

Consumerist

This practice seems to me to be anti-competative behaviour by which the banks seek to prevent people from looking for the best deal.

Although it won't help your present situation, I would suggest you lodge a complaint with the OFT. They will not investigate individual cases but many similar complaints received about the industry may lead to a wider investigation of the practice. Every little helps.

Campbell1_2

chalkie99 wrote: »

Not much different than me going into Asda before Christmas and seeing coffee at a £ a jar cheaper than it is now.

It's not a case of varying prices, they still offer the same price to others. What I'm getting at, is that, because I have made an earlier application (that was not rejected, just out of time due to holidays) it effects an application now, that I make to them, or any other loan provider.

They have essentially amended my credit score, losing my ability to get a good deal like everyone else