Need to complain about loan rejection

JuicyJesus

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?

It's not 51% of people who apply, it's 51% of people who are accepted.


You're in the 49%.

[Deleted User]

JuicyJesus wrote: »

You're in the 49%.

Which would be a bronze medal in the Olympics, so not too bad.

Clive_Woody

As mentioned they are under no obligation to lend you more money at a better rate. You were happy to take out the original loan at the agreed rate, it is not a scam, there is nothing to complain about other than there are now better deals available compared to the contract/loan-agreement you signed.

There is of course the option that you could apply elsewhere. Just because you do your other banking with Santander does not mean that you have to go to them to get a loan.

Be careful about making too many applications in a short time as this will show on your credit file and may be considered a negative when it comes to calculating APRs.

MABLE

theskewbald wrote: »

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:

A while ago in Lloyds Bank the manager said if you want a loan to consolidate your debts the APR will always be higher.

poppasmurf_bewdley

theskewbald wrote: »

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:

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?

The people who WILL get the headline rate won't be people who are seeking to consolidate, reorganise their finances and wanting to upgrade a car that isn't yet paid for.

Sorry.

ReadingTim

Would your self-employed husband do a 2nd job for someone before they'd paid for the 1st? Would he work for someone who claims to have loads of money, but asks to pay in instalments rather than all in full? And then wants longer to pay? Would he work for someone who'd kick him off a job half way through then get someone cheaper to finish it off?

No? Funny that.

Well, this is exactly what you're expecting the bank to do, and you wonder why they said no?!?

MoneySavingAtWork

I can see your frustration here. All banks 'representative rates' are not representative in the least, they are a best case scenario which they use a bit misleadingly to suggest to people that's what they could get.

Realistically any forms of significant debt such as credit cards, existing loans etc (excluding mortgage) will make it very tough to get this headline date. People who have a PCP car finance deal with a balloon payment often find themselves in a bit of an awkward situation when it comes to getting a personal loan from a bank expecting a reasonable rate to pay off the reminder as the finance on their existing car means they get a less favorable rate when applying for a new loan.

There are some banks which can give you a personalised loan rate based on a soft search. I know Barclays are one of these as are TSB if you bank with them, this at least makes things a bit more transparent before applying.

Pixie5740

MoneySavingAtWork wrote: »

I can see your frustration here. All banks 'representative rates' are not representative in the least, they are a best case scenario which they use a bit misleadingly to suggest to people that's what they could get.

It represents the rate offered to 51% (the majority) of successful applicants. I'd say that's pretty representative.

The OP has been bankrupt in the past so whilst the bankruptcy might not appear on her files with the credit reference agencies lenders who were caught up in her bankruptcy will still have it on their own customer records.

MoneySavingAtWork

Pixie5740 wrote: »

It represents the rate offered to 51% (the majority) of successful applicants. I'd say that's pretty representative.
.

I'd argue its representative enough to be legal, but not representative enough to give people a true reflection of what interest rate to expect when trying to plan finances going forward. The word 'representative' gives the impression of an average or typical rate which is far from the truth as we know. I dont find it suprising many people see the headline rate and assume it will be somewhere along those lines, when in reality it can never be better, often worse (sometimes significantly so), or even a chance of an outright decline. Its to be treated in the same way as broadband speeds where they use the term 'up to'.