Barclays Personal Loan RIP OFF!!!

Histemic

Okay, this is my thread from last week on this forum:

Got a high APR decision in principle - where to from here?

The low down. I went into Barclays last week to apply for a personal loan of £13,000. I don't have any personal debt and recently paid off and cancelled a credit card with M&S finance. They went through there system and offered me a loan at 27.9% APR. The bank clerk suggested that because I'd been over drawn at month end for a few months it had effected the rate.

To be fair to the clerk he did push me toward checking online before I accepted there offer. I checked here first, the link above, to see who I should apply with. I applied to the company that I had the credit card with. Now, they've just made me an offer. Remember that Barclays, my current account provider of 10+ years, offered me 27.9%. M&S finance offer 8.6% and were apologetic that I couldn't get the headline rate.

The difference between the 2 offers was close to 20% and more than £9k in interest payments.

Needless to say I'm livid with Barclays. I'm unsure what to do from here though.

1, Not take it personally and push Barclays to beat the other rate
2, Close the current account and leave Barclays

jaybeetoo

Vote with your feet. That's the only way banks will get the message.

jonesMUFCforever

Keep the Barclays account and take the M&s loan.
Barclays or anybody else don't have to lend to you - the fact that you had another company's card rather than Barclaycard may have gone against you.

M&s saw that you had paid off their card and were prepared to lend to you again. Barclays may not have had that option.

[Deleted User]

Do whatever is best for you. If you like the service/products you normally get from Barclays, then stick with them. If not, then leave.

But no point in getting angry because two different lenders have different business models, targets, and risk profiles.

Tixy

They simply have different lending criteria. Its not unsual to be offered different rates.

Plus Barclays can see more about your finances - from a review of your bank account they see you as higher risk - perhaps because you've been overdrawn, which gives them the impression you don't have a spare £x amount of money each month to pay off a new large loan.

I'd be surprised if barclays would reduce the offered APR by anything like that amount, they may reduce it by a few percentage points.

I'd base whether you choose to stay with barclays for your current account on how happy you are with the current account package and service.

Histemic

I think I've got to. Part of me thought I'd get offered a rate of 16-18% by another supplier and I'd go back and barter. But the difference is so big. There's no way I can trust Barclays now. I always thought they were aggressive, but 20% more than the market? There just hoping you won't check so they can take you to the cleaners.

Histemic

Tixy wrote: »

I'd be surprised if Barclays would reduce the offered APR by anything like that amount, they may reduce it by a few percentage points.

They do a price match service. They'll match the rate and give you £50 if their rate is beaten. That's how confident they are!

I can go in and check if you want and repost here?

Tixy

Histemic wrote: »

They do a price match service. They'll match the rate and give you £50 if their rate is beaten. That's how confident they are!

Hadn't realised that.
Having read the T&C of the offer then personally I'd still go with M&S. You may forgo the £50 but at least will know you have the offered rate, and not have to wait until after you have taken out the loan and then potentially find they decide you don't qualify for the better deal promo, and then don't get the refund payments each month.

somethingcorporate

It's not a rip off by any stretch of the imagination. They are pricing for their perceived risk of you.

They think you were a risk so charged accordingly, M&S don't think you are as much as a risk so give you a better rate.

Histemic

somethingcorporate wrote: »

It's not a rip off by any stretch of the imagination. They are pricing for their perceived risk of you.

They think you were a risk so charged accordingly, M&S don't think you are as much as a risk so give you a better rate.

I'd like to agree, but with my history their offer doesn't make sense. I used and paid off a CapOne classic card to build my credit rating. Then I applied to M&S for 0% intro rate card which I, again, used and paid off. That's the beginnings of a very healthy credit record. Is there more than one credit agency? The only way it makes sense is if they don't check properly or they are keener on signing you up at a higher rate.

R_P_W

How about you just take the loan from M&S and get over it? Your talking like Barclays have wronged you in some way - when they haven't.