The M and S Loan con and credit file mark.

ukoberon

SO M and S are advertising an APR 6% representative on loans. As Im in the market for a new Car I thought id apply for a loan with M and S. The rate looks competitive - the MSE site have it listed and we have a very good credit score.

Having completed the application on line I then get an email 2 days later from M and S pleased to offer me the loan for £12k but having assessed my application at a rate of 12%. To discuss furtehr im invited to give them a call.

On Calling them they are very polite but somewhat surprised that i dont wish to go ahead. On asking how the offered rate is arrived at all they can say is we dont know, on asking how i can find out im told that the Computer decides.... (Computer says no!) .

My complaint is that this seems to be very commonplace - how can companies such as M and S advertise the rate they do and then just offer rates double that advertised.

Had the advertising made it clear that the range of % was so extreme I wouldnt have applied as there are better deals out there (one of which i have secured since). However the M and S application has clearly left a mark on my credit file which was totally Un-neccessary . Companies such as M and S need to be clearer with their rates upfront.:mad:

BoGoF

Oh dear, feel better now.

It's not a con, under, I believe, EU guidelines only 51% of applicants need to be offered that rate before it can be advertised as 'typical'.

Tixy

51% of successful applicants get the representative rate. Nearly as many are accepted at a higher rate, Far far more are declined altogether.

Not a con - its just what a representative rate means.

Obviously they considered you low enough risk/type of customer they are prepared to lend to but you didn't fit their lowest rate/preferred customer category.

ukoberon

would love to know what boxes you have to tick to get the 6%

Tixy

Well thats obviously not disclosed.
But its likely a combination of

1)them thinking the applicant is very low risk (as well as a good credit file, low existing debts compared to their income, job stability etc) and

2) them choosing their target customer profile. Maybe for example they particularly like to sign up married couples in their 30s (as past experience has told them they are likely to be able to sell other products to this type of customer profile, credit cards etc that they'll use a lot and so earn lots in transactions fees) and are slightly less keen on single men in their 50s who they think won't purchase additional products, won't be likely to sign up for a M&S credit card and shop in the stores more. And less keen on singles aged 25 who they have historically found are more likely to default.

Apples2

And short people!

_Andy_

Yet another 'con' / 'rip off' thread where there isn't a con at all

somethingcorporate

And this M&S loan one has been discussed on at least 2 or 3 other threads. There is a search facility for a reason OP!

Edit: it took 15 seconds to find the M&S 6.9% thread currently on page 3.

DCFC79

_Andy_ wrote: »

Yet another 'con' / 'rip off' thread where there isn't a con at all

Same as the `scam` threads, quite funny to read though

The M&S loan site does say the 6% is representative so you cant really complain.