Need to complain about loan rejection

theskewbald

Just been into Sandtander to reorganise our finances, consolidating debt, with small amount of cash left over to upgrade car, ending in lower monthly payment.
Husband is S/E but has figures, I've got confirmed salary figures for after April, way over national average. Santander advertises personal loans at 3.1% APR

Our first application (joint) was turned down - but the silly mare had put the whole lot was for a car. Even so. I was shocked.

Redid it on a lower figure just with my name and got approved but at 13.9% APR.

I am asbolutely livid. This is a scam! The payment on the full loan, at the advertised rates, was only a few quid more than we are paying TO THEM now for a loan which is only 1/4 of the total sum.

Therefore basically they have said, no thanks, we'll keep taking more money of you monthly for lending you less money.
Bloody daylight robbery.

:mad::mad::mad::mad::mad::mad::mad:

Oakdene

Santander have a headline rate of 3.1% which means they offer that to 51% of customers who apply. Its not a scandal & you haven't been rejected.

[Deleted User]

If the rate is too high, don't take them up on it.

They don't need to offer you the headline rate if you don't meet the criteria. Neither the Food Standards Agency nor anyone at Radio 4 will be able to make them lend to you.

theskewbald

OK so how come if they give it to 51% of people who apply, a person with a reasonable credit score (above average checked monthly) and an above average salary, with a ten year history with the bank, with no missed payments, is declined?

Who are the 51% to whom they do give it?

[Deleted User]

As no one sees your credit score, it will be likely due to your existing debt. Consolidation loans are higher risk.

thriftylass

Right under the advert it says in bold letters:

Your personal circumstances affect the rate we can offer you which may differ from the representative APR. We will do a credit assessment of your circumstances when you apply. Credit available subject to status to UK residents aged 21 years and over. You can apply for a loan if you have a regular gross annual income of at least £6,000 and have not been declared bankrupt or had a CCJ or an IVA within the last 6 years. We reserve the right to refuse any application and to refuse a loan for certain purposes. Information and rates correct as at 04.01.2017. Repayments must be made by Direct Debit. Rates may be withdrawn at any time.

Gaz83

theskewbald wrote: »

OK so how come if they give it to 51% of people who apply, a person with a reasonable credit score (above average checked monthly) and an above average salary, with a ten year history with the bank, with no missed payments, is declined?

Who are the 51% to whom they do give it?

You won't find that out.

Lenders don't publicise their idea of a perfect customer, for the simple reason that if they were to say "our perfect customer has circumstances of X, Y and Z" everyone applying would somehow have circumstances of X, Y and Z.

Ironically, the "silly mare" would have probably gotten you a better deal by putting the whole amount was for a car rather than debt consolidation. Debt consolidation loans are high risk.

sivs

I have been given 3% from Santander last week so people do get these rates but I have taken Nationwide up on their loan promise so get a rate of 2.5%.

Maybe you have to much debt ?

theskewbald

Sorry how is it a higher risk if the net result is that the monthly payment is lower than the existing one?

I'm at greater risk of not paying £340 a month than I am of not paying £485?

theskewbald

sivs wrote: »

I have been given 3% from Santander last week so people do get these rates but I have taken Nationwide up on their loan promise so get a rate of 2.5%.

Maybe you have to much debt ?

Well it wouldn't appear so, but maybe we do?

Arleen

theskewbald wrote: »

Sorry how is it a higher risk if the net result is that the monthly payment is lower than the existing one?

I'm at greater risk of not paying £340 a month than I am of not paying £485?

You are a bigger risk because you are looking to consolidate previous debts. Meaning that there already is something odd about your finances, as most people don't need to consolidate.