Headline rate 'scam' - M&S Loans

regency_man

shortcrust wrote: »

As you said yourself, "Read all the small print - yes it said the 3.3% rate was 'dependent on circumstances"

OP - Really, get over it. They've done nothing wrong.

So by the same token if British Gas took out huge adverts in the press and on price comparison websites offering gas at half the price of their competitors if you switched to them, encouraging 1000s of people to complete paperwork to start the switch process. Then after processing your application several weeks later they told you that you didn't qualify for the cheap gas rate, they can't tell you why, but they could offer you gas at twice the normal price. That would be OK so long as they put 'rate dependent on circumstances' on the advert? :rotfl: Nope it wouldn't - because it's misleading advertising and the Energy industry are policed on it. Why shouldn't this apply to the finance industry?

Honestly, the number of people on here who say "get over it that's just the way is it" is narrow-minded and sadly indicative of tragic levels of public apathy in this country, and the reason the banks are able to get away with this sort of practice in the first place.

Finance has become an essential part of modern life - a product that almost everyone will have to use at some point in their lives. As such it should be much more tightly regulated in favour of the consumer. The Energy industry used to be like this and that was torn apart and standardised so consumers knew where to get the best deal. Now energy companies get massive fines for misleading consumers and not offering them the best deals available. It will happen to the Finance industry eventually, if people keep pushing for it.

Faith177

regency_man wrote: »

So by the same token if British Gas took out huge adverts in the press and on price comparison websites offering gas at half the price of their competitors if you switched to them, encouraging 1000s of people to complete paperwork to start the switch process. Then after processing your application several weeks later they told you that you didn't qualify for the cheap gas rate, they can't tell you why, but they could offer you gas at twice the normal price. That would be OK so long as they put 'rate dependent on circumstances' on the advert? :rotfl: Nope it wouldn't - because it's misleading advertising and the Energy industry are policed on it. Why shouldn't this apply to the finance industry?

Honestly, the number of people on here who say "get over it that's just the way is it" is narrow-minded and sadly indicative of tragic levels of public apathy in this country, and the reason the banks are able to get away with this sort of practice in the first place.

Finance has become an essential part of modern life - a product that almost everyone will have to use at some point in their lives. As such it should be much more tightly regulated in favour of the consumer. The Energy industry used to be like this and that was torn apart and standardised so consumers knew where to get the best deal. Now energy companies get massive fines for misleading consumers and not offering them the best deals available. It will happen to the Finance industry eventually, if people keep pushing for it.

But they are not misleading on nearly every advert I have seen for a loan APR that's low it says in the small print this rate has been offered to x% of customers. It even states quite clearly on the M&S loans website that the rate is subject to your circumstances. On this occasion M&S felt that you as a borrower were possibly a slightly higher risk than someone else. I get better rates than my housemate all the time because I'm a homeowner and work in a professional capacity where as he rents and works in a pub

They offered you a rate you have the choice to say no and look elsewhere they are forcing you into taking the loan they are making you an offer that is all

As someone who has worked for FOS and had dealings with the FCA in the past they are not in it for the banks and do a lot of good work in fining companies who do wrong just google bank fines they have doled out loads recently.

Nearlyold

regency_man wrote: »

So by the same token if British Gas took out huge adverts in the press and on price comparison websites offering gas at half the price of their competitors if you switched to them, encouraging 1000s of people to complete paperwork to start the switch process. Then after processing your application several weeks later they told you that you didn't qualify for the cheap gas rate, they can't tell you why, but they could offer you gas at twice the normal price. That would be OK so long as they put 'rate dependent on circumstances' on the advert? :rotfl: Nope it wouldn't - because it's misleading advertising and the Energy industry are policed on it. Why shouldn't this apply to the finance industry?

Honestly, the number of people on here who say "get over it that's just the way is it" is narrow-minded and sadly indicative of tragic levels of public apathy in this country, and the reason the banks are able to get away with this sort of practice in the first place.

Finance has become an essential part of modern life - a product that almost everyone will have to use at some point in their lives. As such it should be much more tightly regulated in favour of the consumer. The Energy industry used to be like this and that was torn apart and standardised so consumers knew where to get the best deal. Now energy companies get massive fines for misleading consumers and not offering them the best deals available. It will happen to the Finance industry eventually, if people keep pushing for it.

Finance is quite tightly regulated already as has been stated a number of times in this thread. If you want everyone to be offered the advertised rate, lenders would have to set a rate that covered higher risk customers which would mean that those customers who represented a lower risk would effectively be penalised.

FOREVER21

regency_man wrote: »

So by the same token if British Gas took out huge adverts in the press and on price comparison websites offering gas at half the price of their competitors if you switched to them, encouraging 1000s of people to complete paperwork to start the switch process. Then after processing your application several weeks later they told you that you didn't qualify for the cheap gas rate, they can't tell you why, but they could offer you gas at twice the normal price. That would be OK so long as they put 'rate dependent on circumstances' on the advert? :rotfl: Nope it wouldn't - because it's misleading advertising and the Energy industry are policed on it. Why shouldn't this apply to the finance industry?

Honestly, the number of people on here who say "get over it that's just the way is it" is narrow-minded and sadly indicative of tragic levels of public apathy in this country, and the reason the banks are able to get away with this sort of practice in the first place.

Finance has become an essential part of modern life - a product that almost everyone will have to use at some point in their lives. As such it should be much more tightly regulated in favour of the consumer. The Energy industry used to be like this and that was torn apart and standardised so consumers knew where to get the best deal. Now energy companies get massive fines for misleading consumers and not offering them the best deals available. It will happen to the Finance industry eventually, if people keep pushing for it.

If. I am understanding this correctly , you expect a bank to advertise a % rate for a loan and give all successful applicants that rate, not just the the percentage stipulated by regulations.

You also want an organisation like the FCA to monitor this.

Sorry but it is, despite how many objections, never going to happen.

If the position was to be as you want then I guess the result would be that banks would on the whole greatly increase the % rate of their loan offers.

In the business of loan allplications they will always be , so to speak winners and losers. The fact that the bank had the caveat re depending on circumstances prevents any misleading advert claim.

If you still feel that it was misleading complain to Trading Standards via the local CAB, but I suggest you will not get past first base.

Pixie5740

Stop throwing your toys out the pram. You didn't get the headline rate, boo hoo. A more pertinent question would have been asking how to use the search function on the forum because headline rates and credit scores have been explained numerous times before.

BenjaminClarke

regency_man wrote: »

So by the same token if British Gas took out huge adverts in the press and on price comparison websites offering gas at half the price of their competitors if you switched to them, encouraging 1000s of people to complete paperwork to start the switch process. Then after processing your application several weeks later they told you that you didn't qualify for the cheap gas rate, they can't tell you why, but they could offer you gas at twice the normal price. That would be OK so long as they put 'rate dependent on circumstances' on the advert? :rotfl: Nope it wouldn't - because it's misleading advertising and the Energy industry are policed on it. Why shouldn't this apply to the finance industry?

Honestly, the number of people on here who say "get over it that's just the way is it" is narrow-minded and sadly indicative of tragic levels of public apathy in this country, and the reason the banks are able to get away with this sort of practice in the first place.

Finance has become an essential part of modern life - a product that almost everyone will have to use at some point in their lives. As such it should be much more tightly regulated in favour of the consumer. The Energy industry used to be like this and that was torn apart and standardised so consumers knew where to get the best deal. Now energy companies get massive fines for misleading consumers and not offering them the best deals available. It will happen to the Finance industry eventually, if people keep pushing for it.

:T

Well said. I gave up on this country in general when I discovered that for £10,000.00 you can have lunch with the Prime Minister. That underlines EVERYTHING that is wrong with the Western world and in particular this country.

regency_man

Deleted_User wrote: »

No. I mean the kind of massaging you see on here when people ask 'what is a good reason to put down for the purpose of the loan?'

I think that's a perfectly valid, fair and legitimate question.

I had to put 'Miscellaneous' because I'm going to use the loan for several things and there wasn't an option to select more than 1 thing.
If I'd have known that putting 'Car' would have got me a better rate, then I could have put that because some of the money will be used to pay off a small amount of remaining finance on a car.
If putting 'Home Improvement' would have got me a better rate, I could have put that because a large amount of it is going towards renovating 3 rooms in my new house.
If putting 'Furniture Purchase' (which was a genuine option!) would have got me a better rate I could have put that because part of the renovation will involve buying some furniture.

Do you see what I mean? Application 'massaging' is not a bad thing - I could have legitimately put any of the above.

BenjaminClarke

FOREVER21 wrote: »

If. I am understanding this correctly , you expect a bank to advertise a % rate for a loan and give all successful applicants that rate, not just the the percentage stipulated by regulations.

You also want an organisation like the FCA to monitor this.

Sorry but it is, despite how many objections, never going to happen.

No it won't happen because the banks aren't here for our convenience. They are here to make millions of pounds for their own pockets. Being honest and truthful about interest rates wouldn’t be in their interest, it would only be in the interest of their customers or us to be more precise.

Thrugelmir

BenjaminClarke wrote: »

No it won't happen because the banks aren't here for our convenience. They are here to make millions of pounds for their own pockets. Being honest and truthful about interest rates wouldn’t be in their interest, it would only be in the interest of their customers or us to be more precise.

And some customers are prepared to lie.

Maybe if I'd have said the loan was for a new bathroom then they'd have approved it on the rate being offered?

If you throw a boomerang you better watch out.

That's the culture of the UK. Dog eats dog. Banks are run by ordinary people. Looking after their own pockets.

Faith177

BenjaminClarke wrote: »

No it won't happen because the banks aren't here for our convenience. They are here to make millions of pounds for their own pockets. Being honest and truthful about interest rates wouldn’t be in their interest, it would only be in the interest of their customers or us to be more precise.

They are honest and truthful they clearly state the rate before you accept.

They clearly state on all literature that any APR is based on your circumstances. Like insurance an APR cannot be a one size fits all exercise. Why should I be penalised with a higher rate for being good with my money just because someone else isn't?

Unfortunately sometimes life isn't fair and you don't always get what you want especially when someone else's money is involved