Sainsbury's Loan 3.2% RIPOFF

AuntyJean

I am an existing customer with Sainsbury's bank. However, I have my main (cheque) account with First Direct. I currently have a loan with FD at 3.6% and saw Sainsbury's offering 3.2% so applied and was accepted. When I received the documents to sign the rate was 6.6%. I went online and went through the application again and at the very end it advised I would not be given the advertised rate due to the reason for the loan or something!

There is no question to whether you currently bank with Sainsbury's and no reason given as to why the higher rate is applicable.

Totally unimpressed with Sainsbury's online application. Will be ringing them when their lines are open.

tomtontom

At no point were you guaranteed the 3.2% rate.

You have not been ripped off.

DCFC79

AuntyJean wrote: »

I am an existing customer with Sainsbury's bank. However, I have my main (cheque) account with First Direct. I currently have a loan with FD at 3.6% and saw Sainsbury's offering 3.2% so applied and was accepted. When I received the documents to sign the rate was 6.6%. I went online and went through the application again and at the very end it advised I would not be given the advertised rate due to the reason for the loan or something!

There is no question to whether you currently bank with Sainsbury's and no reason given as to why the higher rate is applicable.

Totally unimpressed with Sainsbury's online application. Will be ringing them when their lines are open.

Not sure if your joking but no rip off has occurred here. The 6.6% is a good rate although as been suggested not as good as the FD loan so why not stay with them, they obviously like you as a customer.

No lender is required to lend to anyone nor is anyone entitled to the headline rate. To get the headline rate you need to fit the criteria eg not be a round peg going into a square hole but into a round hole.

Ring away if you like, can't see it changing the result though.

AnotherJoe

Like most posts in forums that use the words "rip off", a complete failure to understand to understand what a rip off is.

Superscrooge

From the Sainsburys website when you first click on 'Loans'

Representative APR:
3.3% APR
The rate you are offered will depend on your personal circumstances, credit assessment procedures and other related factors.

This makes it clear that you are not guaranteed the headline rate

Only 51% have to be given the headline rate. Sadly you were one of the 49%.

I would stick with FD. 3.6% is a pretty good rate

Nebulous2

I'm not sure what you were intending doing?

Keeping both loans or using one to pay off the other? It's unlikely to be worth it for 0.4% if you have to pay to settle the previous loan.

Anyway your level of indebtedness may well have had an impact. They will have seen the previous loan and may have loaded your interest rate because of a concern about the increasing level of debt.

[Deleted User]

Only 51% of those offered a loan have to be offered the headline rate.

pathtofreedom

Depending on the size of your loan, and what early repayment charge etc you have with FD would it even have saved you anything to try and pay off one loan with the sainsburys one? Did you explain in your application it was to pay off the FD loan as well? as you might have got the higher rate as they thought your debt to income ratio was too high for that deal.

iolanthe07

Another poster who takes it personally when not offered the low headline rate. Perhaps the lender had already filled their quota (51% of successful applications) and do not need to take a hit on further loans this month/quarter.

AuntyJean

I am surprised at the negative feedback I received. As far as I am concerned Sainsbury' are enticing people to take out a loan starting from 3.2% for those with a Nectar card. Not wishing to boast but I have triple the amount of my loan amount requested stashed away, just did not want to use it. I had a rubbish mortgage at a massive interest rate which was down to £25k so took out a loan with FD at the rate advertised on their website. This was not a variable amount depending on your circumstances etc. I was accepted and have paid off half so far. When I saw my other bank offering a lower rate I went for it.


Sorry but I found it rubbish that 51% get the rate at the rate quoted and that they do not take into account whether or not you already bank with them nor could they explain why I was not given the 3.2% as they do not have access to that information. It is non-negotiable. Thank goodness FD have human beings that do not depend entirely upon boxes being ticked in the right order on a computer before considering your application.


I have complained to Sainsbury's and although I won't be taking out their loan hoped this bring to Sainsbury's attention their advert was misleading. I just wanted to warn others who were simply trying to get the best deal they could that Sainsbury's are not the best offer around for most of us. Perhaps I should have lied when answering the questions and not stated honestly I wanted to pay off another loan but wanted to do home improvements?

Pixie5740

Representative APRs aren't rubbish, it's a term defined in law which came into affect 1/2/11 in the UK.

The people are Sainsburys Bank don't know the lending criteria or what determines the APR offered any more than those you speak with at First Direct or any other lender.