Proof the banks are keeping us in debt.

mnireland

I have more reasons* than most to despise banks and their employees but I have never vented, stating wild claims of proof of mis-justice, unfair treatment or negligence but Santander appear to have proved it for me, in writing.

I recently applied for a Santander loan for which I was accepted. I used their website to apply and their calculator which demonstrated loans under £15,000 getting interest rates of 4.5%, under £20,000 getting 6.5% and so on, up to 9%.

Santander via their website also recommends logging in to my account to see offers specially for me, which I did. This is the screenshot of my personal offer:
bigbluesquid.com settlers Santander%20loan%20ad.jpg
(I'm a noob here so insert forward slashes in the spaces).
As you can see, it states "You will get the advertised rate upon acceptance".

Upon acceptance of the loan, I received a letter saying "thank you for your application for a loan of £14,900 at 9%".
At no time did I apply for a 9% loan.

I telephoned Santander to refuse the loan and explain I wanted the loan I applied for. The lady told me it was subject to status which I explained I understood but the advert states getting the loan is subject to status, the rate of 4.5% is given, upon acceptance.

She denied this and cancelled the loan. I also complained that this left a mark on my credit file which she explained made no difference to my credit file.

That reply is either at best, incompetence or at worst, lies. For those not familiar with credit file searches, this additional imprint on my file reduces my chance of getting a loan anywhere else and reduces the number of loans I can apply for in a 3-6 month period.

I have referred the advert to the ASA who replied and said it was not covered by them but they have forwarded my complaint to the FCA. I have also complained to Santander who have replied within their 72 hour window (as stated by their complaints handling) to say a specialist department deals with that sort of complaint and as yet I have had no reply from them.
I have also complained to the Financial Ombudsman and am awaiting their reply.

Has anyone else run into problems with promised loan rates not being given?

*Regarding my reasons to hate the banks more than most, I was put out of business by PayPal eight years ago after an incorrect fraud investigation due to multiple returns in my online business. The multiple returns were caused by a manufacturing fault in camera equipment I was selling via my website. I took on the debt of the business personally rather than cost my other suppliers and customers money by not paying them. With interest this totalled £330,000 which I saved interest on and managed myself through getting multiple jobs and moving balances around (up to 3 times a week between loans and credit cards - see other resources on this site for how to be a "rate tart" and "stoozer"). It will still take me 14 years to pay it all off, of which 8 years have passed. I have never missed a payment (giving me an excellent credit rating), everyone from the business got paid and my annual wage is around £20,000. I am quite proud of my debt management success so far and the fact no-one lost money but me, but at the same time I do not give the banks or their employees a second of my time on account of the exceptional lies and poor advice they have tried to give me over the years.
My favourite quote from a Bank of Scotlands' Mint card representative is still "high interest rates don't matter when it's over such a short period of time". (It was a loan over 3 years).

Pixie5740

It also says "Subject to status". Whatever you status is, it doesn't meet Santander's criteria to give you a loan of £14,900 with an APR of 4.5%.

mnireland

So is the next statement just nonsense, "You'll get the advertised rate upon acceptance"?
Subject to status I was accepted. I didn't get the advertised rate. They can't have it both ways.

Pixie5740

I think you're mis-understanding what the advert says. It says that suject to status you'll get the advertised rate. Subject to your status you are not eligible to get the headline rate.

If I remember correctly that at least 2 out of 3 people who apply for the product need to get the headline rate advertised. For whatever reason you're the 1 out of 3 in this case.

kaya

I find it funny how you believe the banks are keeping us in debt and your proof is a loan enquiry, the title should have been " I'm useless with money and keep getting Into debt" , that is unless the bank is somehow forcing you to take the loan ? All loans are subject to status and credit checks and marketing means they will always present you with the most attractive scenario in order to attract custom

marliepanda

Pixie5740 wrote: »

I think you're mis-understanding what the advert says. It says that suject to status you'll get the advertised rate. Subject to your status you are not eligible to get the headline rate.

If I remember correctly that at least 2 out of 3 people who apply for the product need to get the headline rate advertised. For whatever reason you're the 1 out of 3 in this case.

Not 2/3, its just over half

Not everyone will be offered the best rate
Another thing to remember is that loan providers only have to offer the headline rate to 51 per cent of those who apply, so you may not get the rate advertised - particularly if you do not have a strong credit history.

So the OP simply falls into 49%, and with this loan being the cheapest offered currently, and for a long time, there will be LOTS of applicants to choose from.

Pixie5740

Thanks Marliepanda. Maybe it's just Nationwide's policy to offer it to 2/3 of applicants or at least it was at some point.

financialdisease

I can understand your frustration I would want to know the rate I was agreeing to before actually agreeing to apply for the loan! I get that not everyone will qualify for it but as its tailored to your account advertising I would have expected the rate to be accurate.

tomtontom

mnireland wrote: »

So is the next statement just nonsense, "You'll get the advertised rate upon acceptance"?
Subject to status I was accepted. I didn't get the advertised rate. They can't have it both ways.

The rate is given/ 'advertised' on the acceptance screen. The screen you link to is simply inviting you to apply, it does not guarantee acceptance or any particular rate.

financialdisease wrote: »

I can understand your frustration I would want to know the rate I was agreeing to before actually agreeing to apply for the loan! I get that not everyone will qualify for it but as its tailored to your account advertising I would have expected the rate to be accurate.

They cannot ascertain the rate until they have done a credit search, and they cannot do that without your consent (which you give when applying).

Stewart_78

Have to agree that they can't quote you until they search but maybe some of this stuff needs to be regulated. I'm in a DMP and am constantly getting card applications saying I have been 'Pre-selected to apply' for this and that. I have zero chance of being successful so in my mind, the 'pre-selected' bit is mis-leading. It means your name is on a list somewhere and that's about it. But they are trying to make you think something that isn't true in reality. It doesn't matter to me but I think it's sharp practice all the same.

hohum

the banks don't care whether you are in debt or not, they just want you to take their products. they also need to know whether you are likely to default on credit. If you are more of a risk, they will charge you a higher rate of interest because they are taking more of a risk.

Someone who has credit and keeps up repayments is more profitable than someone who does not have credit, so that bit about them wanting you to be in debt is true. However someone who is unable to keep up with their commitments is more of a risk to lend to.

I'm no fan of the banking sector but honestly, this is is not a personal vendetta. Banks are businesses and they don't give two hoots about you and your personal finance, except as a customer and as a risk.

I had a long running conversation with my bank for a while who kept trying to organise 'advice'. What they meant was 'can we sell you some contents insurance or a loan'. I always get really irritated by the ads on tv where the bank is presented as a person. The high streets banks are not a person, they are a series of automated processes. It would solve a lot of confusion and upset if we stopped pretending a bank is a person!