Sainsburys Bank loan rate dishonesty

JimSteel

Hi,
I was going to take out a loan with Sainsbury's Bank recently after moneysavingexpert returned a 2.7% rate. My credit score is good, so I applied and was approved, 'subject to a few further checks' and had to wait for the paperwork to sign.
Several days later it arrived, but now the loan rate had magically become 4%??
This seems like a blatantly dishonest practice, and this website is allowing them to sit at the top of the search list with an interest rate that they apparently have no intention of giving you. I imagine a lot of people continue at this stage either unnoticed or desperate.
I searched the web and found absolutely tons of corroborating stories, along with other examples of poor practice, such as payments not being taken and up to £25 charges being applied each time, statements not arriving, and a customer service department that literally leaves people on hold for hours on end. How can they get away with this?

Needless to say, I am not pursuing this loan any longer.
Regards, Jim

Nebulous2

They need to give the headline rate to 51% of the successful applicants.



People with the very best credit histories self-select for the best headline rates, so they can afford to be very picky. I have a theory that if you move 2 or 3 places down the table, probably to 3% - 3.2% you'll find it much easier to get accepted at the headline rate.

meer53

JimSteel wrote: »

Hi,
I was going to take out a loan with Sainsbury's Bank recently after moneysavingexpert returned a 2.7% rate. My credit score is good, so I applied and was approved, 'subject to a few further checks' and had to wait for the paperwork to sign.
Several days later it arrived, but now the loan rate had magically become 4%??
This seems like a blatantly dishonest practice, and this website is allowing them to sit at the top of the search list with an interest rate that they apparently have no intention of giving you. I imagine a lot of people continue at this stage either unnoticed or desperate.
I searched the web and found absolutely tons of corroborating stories, along with other examples of poor practice, such as payments not being taken and up to £25 charges being applied each time, statements not arriving, and a customer service department that literally leaves people on hold for hours on end. How can they get away with this?

Needless to say, I am not pursuing this loan any longer.
Regards, Jim

Not you, but lots of other people.

JimSteel

Newbie or not, it's seriously dishonest to give every signal that you've been accepted at the advertised rate, and then send paperwork at a higher rate with no explanation whatsoever.

And after reading the reviews of their service I wouldn't touch them with a bargepole now.

zippygeorgeandben

Martin does always say to be aware that it is a representative rate. When you're next watching ITV2 and you see adverts for loans, pause the sky box, look at the small print at the bottom and you'll see the word representative.

Willing2Learn

JimSteel wrote: »

...it's seriously dishonest to give every signal that you've been accepted at the advertised rate, and then send paperwork at a higher rate with no explanation whatsoever.

It is not dishonest.

On their website, at the beginning of the quotation page, it says

All quotations given are for illustrative purposes only.

And then at the middle of the page it says

The rate you may be offered will depend on your personal circumstances, credit assessment procedures and other related factors.

And finally, at the bottom of the page it says

We treat all our customers and their applications on an individual basis. The APR we offer is determined by the details you supply and the loan you are applying for, along with an independent verification of your credit and repayment history and will range from 2.7% to 25.9% APR.

Pretty transparent and honest if you ask me!!!

Pixie5740

https://www.moneysavingexpert.com/banking/interest-rates/

https://www.moneysavingexpert.com/loans/personal-loans-apr-examples/

Where credit cards or loans use a representative APR, this means 51% of successful applicants will be given the stated interest rate.

DCFC79

JimSteel wrote: »

Newbie or not, it's seriously dishonest to give every signal that you've been accepted at the advertised rate, and then send paperwork at a higher rate with no explanation whatsoever.

And after reading the reviews of their service I wouldn't touch them with a bargepole now.

What's wrong with the 4% ?
It's not the advertised rate but it's still good.

I'm afraid it wasn't base on your credit score but your history.

A storm in a tea cup.

elle_may

I have had 3 loans with Sainsbury and have found their service to be very good. As i had a loan already running i wanted to borrow more as i was near the end and they said i could run both along side. This was cheaper as they even lowered my APR 4% to 3% I have found when on the phone to them i have always been told the rate i am been offered before the paper work came out, and it has been the same.

JimSteel

Representative pah! This didn't happen when I went to Zopa. What's the point in a comparison site if the numbers mean nothing?

Pixie5740

JimSteel wrote: »

Representative pah! This didn't happen when I went to Zopa. What's the point in a comparison site if the numbers mean nothing?

Yes it did happen when you went to Zopa because they also advertise a representative APR. You might have been one of the 51% of successful applicants but rest assured that a representative APR was used.

If there's no one interest that's offered to all successful applicants how else would you have lenders advertise their loan rates? Rather than offering the 49% of successful applicants who don't achieve the representative rate would you prefer that they were just straight up declined instead? For the avoidance of doubt that's a rhetorical question.