Sainsburys Loans - beware! Dodgy practices

idc74

Recently applied for a very competitive 6.2% loan from Sainsburys. I have never been refused a loan in the past and have a credit rating of 'excellent'.
Applied online, got provisionally accepted, did all my affordability calculations on the 6.2% rate quotes. Completed the process on the phone, and at the very end the customer service person casually mentioned the rate would be 10.2%. When I queried this it immediately dropped to 9.2%. Led to discussion with customer service manager who refused to see any problem with this, and couldn't (or wouldn't) go into details about why they'd offered a rate around 50% more than quoted online.
Two things to watch out for with Sainsburys:
1. The 6.2% loan rate (available until 21 November) or any other offer they come up with to get themselves to the top of price comparison sites is nowhere near what many people will be offered - even if you have a good credit rating.
2. The very dodgy practice of offering a rate at 1% above the best rate they can offer (unless the customer queries it!) is underhand to say the least. Their response to this is they're being 'flexible'. I would suggest that Sainsburys are simply treating their customers with contempt.

somethingcorporate

1) They only have to offer the headline rate to 51% of applicants (or accepted, I forget which). So you got a rate appropriate for the risk they deem you to pose.

2) Seems odd but nothing wrong with it. It's their money at the end of the day and you have no entitlement to it. They can quote you 500% or 5%, if you don't want to accept the money at the terms they offer then take your business elsewhere.

Your "Excellent" means nothing to Sainsbury's - they will have their own criteria for judging risk. If you want a great rate I suggest you ask the people that provided your rating, see if they lend money

masterlumps

^^ whs

and i hardly think its dodgy practice

idc74

It may be their money, but I'm still a customer, and I'd expect a business like Sainsburys to be a little more honest and upfront. Perhaps that's naiive of me though. I did take my business elsewhere in the end, to the Cooperative Bank, a far more pleasant experience. I just wonder how many of Sainbury's customers are on loan rates higher than they need to be, having initially been pulled in by the low rates advertised.

somethingcorporate

Well all those people were offered rates that Sainbury's and themselves deemed acceptable or the business would never have been concluded. Your post makes no sense - they were on rates they agreed to. The headline rate was not offered to them so they were not on a rate higher than they 'need' be.

[Deleted User]

idc74 wrote: »

It may be their money, but I'm still a customer, and I'd expect a business like Sainsburys to be a little more honest and upfront. Perhaps that's naiive of me though. I did take my business elsewhere in the end, to the Cooperative Bank, a far more pleasant experience. I just wonder how many of Sainbury's customers are on loan rates higher than they need to be, having initially been pulled in by the low rates advertised.

so in this instance youre NOT their customer

opinions4u

idc74 wrote: »

It may be their money, but I'm still a customer, and I'd expect a business like Sainsburys to be a little more honest and upfront.

Their web site states:

"The actual rate we offer may be higher depending on your personal circumstances, credit assessment procedures and other related factors. ".

Hardly being secretive about it. They advertise the fact. They tell you the rate that applies to you before you're committed. Looks honest. Looks up front. What is your problem?

Perhaps that's naiive of me though. I did take my business elsewhere in the end, to the Cooperative Bank, a far more pleasant experience.

As is your choice.

I just wonder how many of Sainbury's customers are on loan rates higher than they need to be, having initially been pulled in by the low rates advertised.

Fewer than got offered 6.2%.

YorkshireBoy

The fact that "at least 51%" of successful applicants get the representative rate has addressed the OP's first point.

However, I do feel they're justified in feeling a tad annoyed with the second point. After all, they weren't dealing with a used car salesman, or buying something from the local market/car boot, where you expect to haggle a discount.

somethingcorporate

I agree YB, although it is not just Sainbury's that do that.

I have read a number of stories on here of similar things happening! I would expect the call centre staff to be reading from a pre-populated % calculated behind the scenes with very little (or any) room for discretion on the part of the agent so you wonder if it is a system blip or something?