Yorkshire Bank loan online Apr% chaos

732Parker

Has anybody else had the same problem with the online application for a personal loan with the Yorkshire Bank, the advert and application states 5% Apr and the system stated application accepted only to be told 24hrs later that the loan rate will be 7%?

Can anybody also give me legal advice about paper "fixed sum loan agreement by the consumer credit act 1974" if the bank sends you an agreement to sign and return stating the loan total, interest rate, APR, total amount payable and total charge for credit, when signed is this a binding legal document and do the bank have to honour their rate stated?

regards 732 Parker

You-kip

Lol......Parker732

DCFC79

732Parker wrote: »

Has anybody else had the same problem with the online application for a personal loan with the Yorkshire Bank, the advert and application states 5% Apr and the system stated application accepted only to be told 24hrs later that the loan rate will be 7%?

Can anybody also give me legal advice about paper "fixed sum loan agreement by the consumer credit act 1974" if the bank sends you an agreement to sign and return stating the loan total, interest rate, APR, total amount payable and total charge for credit, when signed is this a binding legal document and do the bank have to honour their rate stated?

regards 732 Parker

Hope your question can be answered

Caz3121

I believe being accepted for a loan and being accepted for a loan at the headline rate are 2 different things
when you apply there are 3 different outcomes
1) rejected
2) accepted at headline rate - applies to 51% (or more) of accepted applicants
3) accepted for different rate - applies to 49% (or less) of accepted applicants

did they actually send you paperwork to sign with the 5% on it?

Tixy

The advert and application will show a representative APR (clearly marked as such).

The agreement - depends on exactly what it was and what it states. Though lenders often include wording to say that an accepted application is provisional and can still be subject to further checks.

732Parker

Yes the paperwork they sent me to sign and return had the figures worked out on and clearly state 5% Apr, the question is do they have to honour this signed document when I return it in the post today?

Thanks for the replies

iolanthe07

732Parker wrote: »

Yes the paperwork they sent me to sign and return had the figures worked out on and clearly state 5% Apr, the question is do they have to honour this signed document when I return it in the post today?

Thanks for the replies

I don't think so. It is probably an admin error. As others have said, the headline rate only has to be offered to 51% of successful applicants. If they put 5% in the agreement, but meant 7%, they cannot be held to the 5% until they accept the signed agreement and actually lend you the money.

It is similar to an 'invitation to treat' in a shop. You cannot hold the shopkeeper to a ticketed price, if he has made a mistake, until the transaction is complete. Often they will honour the ticketed price out of goodwill, but they don't have to.

732Parker

Ioianthe07 - Surely if they have written and offered me the loan at 5% Apr and I have signed and agreed that contract then the loan should be a binding agreementbetween me and th e bank?

iolanthe07

732Parker wrote: »

Ioianthe07 - Surely if they have written and offered me the loan at 5% Apr and I have signed and agreed that contract then the loan should be a binding agreementbetween me and th e bank?

Surely the agreement isn't binding until the transaction is complete and the principal has been transferred. I'm not an expert, though, and I'm quite happy to be proved wrong.