Sainsbury's Loan 3.2% RIPOFF

AnotherJoe

I understand the Typical APR rules but they can be confusing too. 49% of people applying will likely go away being offered another rate than the one they based their purchasing decision on.
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Faulty reasoning because they haven't made a purchase. Merely made an application and been given a rate which they can accept or reject. Since not all purchasers are equal, nor are all loans, it would be facile to think that everyone gets the same rate.

industryinsider2

This thread wasn't titled "I applied for a Sainsbury's Loan, didn't get the rate I expected to, am I at fault for having set my expectations too high?" this thread is about AuntyJean's experience of making a purchasing decision to get a loan from Sainsbury's, poor Jean didn't get what she thought she was being promised and she doesn't know why. That might be faulty reasoning but I can understand why she feels mislead.

Immediate picture: consumers should be aware that the typical APR is not necessarily the rate you're going to end up with. If you're thinking about applying for a Sainsbury's Loan, use their eligibility calculator to manage your expectations.

Big picture: I believe that AuntyJean isn't alone and Sainsbury's have created an experience that leaves room for consumers to expect one thing whilst they'll end up getting something different. That's bad because consumers are less likely to shop around for a better deal after they've committed to making a full application. I think the typical APR rules leave room for lenders to create ambiguity which is leading to poor outcomes like the one AuntyJean describes. I believe that if marketing communications were more transparent, it would lead to less outcomes like this. I believe that if lenders were more transparent about their rates, it would lead to less outcomes like this.

Gaz83

industryinsider2 wrote: »

Immediate picture: consumers should be aware that the typical APR is not necessarily the rate you're going to end up with. If you're thinking about applying for a Sainsbury's Loan, use their eligibility calculator to manage your expectations.

Consumers are aware that the typical APR is not necessarily the rate they're going to end up with. It says it in black and white that the actual APR offered is based on a person's own circumstances.

This shows on the front page of the loans section of Sainsbury's website:



I'm not sure how much more transparent you expect them to be.

industryinsider2 wrote: »

Big picture: I believe that AuntyJean isn't alone and Sainsbury's have created an experience that leaves room for consumers to expect one thing whilst they'll end up getting something different. That's bad because consumers are less likely to shop around for a better deal after they've committed to making a full application. I think the typical APR rules leave room for lenders to create ambiguity which is leading to poor outcomes like the one AuntyJean describes. I believe that if marketing communications were more transparent, it would lead to less outcomes like this. I believe that if lenders were more transparent about their rates, it would lead to less outcomes like this.

If lenders were transparent about their rates - say, rates of 3.5% for car loan, 4.7% for home improvements, 9.5% for debt consolidation and so on - then all that would happen is people would tailor their applications to meet a lender's ideal customer requirements. Wouldn't work.

dumpyboy

industryinsider2 wrote: »

@zx81 - If that's just the stock MSE Forum arseh0le response then that's cool, I get it. If not, back up your claims with some sort of empirical justification and I'll bow down to your prowess.

Is that not how bankers got away with all the lies before ( sorry we can not show documented truth for business reason) means sorry we can show documented proof it will catch us out as lying

I have no qualms weather 51 per cent get the rate or not but I think until banks are more transparent this will never be answeared

industryinsider2

Consumers are aware that the typical APR is not necessarily the rate they're going to end up with.

I understand that you think that Sainsbury's have taken reasonable measures to ensure that consumers are made aware of that. That's cool. I respect your opinion. It didn't work for Jean and I believe that lenders can do more. That's all.

If lenders were transparent about their rates - say, rates of 3.5% for car loan, 4.7% for home improvements, 9.5% for debt consolidation and so on - then all that would happen is people would tailor their applications to meet a lender's ideal customer requirements. Wouldn't work.

If there was transparency over pricing, everyone would commit application fraud? Hey maybe you're right and poor Sainsbury's. That's not really the point though.

PeacefulWaters

Malcnascar wrote: »

The long and short of this should see the lenders being forced to make decisions on the basis of a soft search.

But that doesn't necessarily pick up some nasties in the background. So, for me, would expose lenders to unnecessary risks of bad debt and would inevitably increase rates for all.