higher rate APR approved, any point for complaint?

Paul332_2

Hi all,

I applied for a personal loan of 10,000 (joint with my wife), 10 years, through RBS. The standard APR on the website was 3.9%.

I have now received an agreement in principle for a loan of the same amount and duration but with APR of 7.9%. I called RBS and as expected they said that 3.9% was only the representative APR and that the applicants credit condition determines what APR actually applies. The operator advised me that if I want I could talk with the Compliant department and they would record my complains and come back to me.

I was wondering if you think this (opening a compliant with RBS) may help me to get a lower APR or if you think it will be only wasting my time resulting in prolonging the process of getting the loan (and in worst case scenario even rejecting 7.9% due to further investigation of our credit).

I can live with 7.9%. If I know that the complains would go no where then I will just sign the agreement to get the loan sooner. However if I know that making a compliant may give me a chance to reduce the APR, then of course I would like to try that.

Any advice is most appreciated.

Many thanks

Paul

Bogalot

Unless you can give them new information that might affect their decision, you're wasting your time.

Pixie5740

No point for complaint whatsoever. RBS advertise with a representative rate which is perfectly legal and is the rate offered to 51% of successful applicants. Don't believe me then search for "representative rate" online or even on this forum board where it has been discussed many, many times already.

Dobbibill

You would be wasting your time and theirs complaining.

This is on their website

Other amounts available at alternative rates. Our rates depend on your circumstances and loan amount and may differ from the Representative APR. Over 18s and existing Royal Bank of Scotland current account customers only.

Then a few inches lower it says this

The rates you pay depend on your circumstances and the loan amount and may differ from the Representative APR

Pixie5740 has covered the rest of it.

Ben8282

10 years is an awfully long term for a £10000 loan. Do you really need such a long period to repay? With loans there comes a point, usually at about 4 - 5 years, when the increasing total cost of the loan starts to outweigh the small reductions in the monthly payment amount. You are going to be paying an awful lot of interest over the 10 years while the actual monthly repayment figure will not be all that much less than a shorter term loan for the same amount.
I can't see that you have any cause for complaint whatsoever and I can't see how a complaint about your not being offered the headline rate can possibly be successful or get you a lower rate
Also the fact that you want to repay 10k over 10 years and the fact that you are applying for a loan rather than one of the longer term 0% cards would indicate to me that your financial situation is probably not very good.