Tripling the APR on a new loan with the same company

brownbabygirl

Hi,

Have had a loan with a company for the past 2 years which has just completed the payment on with no defaults or missed payments at all. I needed a new loan and they have now tripled the APR on the new one as they say my credit rating has since gone down. I have been advised that this is wrong and that legally the new loan should have no more a higher APR than the old. Is there any truth to this?

[Deleted User]

No. That's a bizarre thing to claim.

A new loan can attract whatever rate the lender sees fit.

brownbabygirl

that's what i thought too.

Tixy

No truth at all - they can offer you a loan at any rate they want, or not at all.

edit - too slow answering!

smithers1981

As its a new loan they can charge you whatever APR they like the decision on whether to accept is down to you, have you tried applying elsewhere to see if you can obtain a better rate?

Nationwide do a soft search so try them and see what sort of APR they will offer you.

If you have already accepted the new loan and new APR then you don't really have any cause for complaint.

27col

You don't have to accept any particular interest rate, that is your priviledge. Theirs is to charge whatever they think they can get away with. The two do not have to meet at any point.