Online loans advertised rates are simply a phishing con trick

[Deleted User]

nubian wrote: »

Yes I guessed that. Slightly perverse that lack of debt does seem to equate to no record of regular debt payment.

You're confusing lack of debt with lack of credit usage. There is no need to incur debt - simply use a credit card and clear in full each month.

It shows astute financial management and therefore lower risk.

Pixie5740

nubian wrote: »

Strangely they meet the criteria in both cases, they live at home for free have only a phone contract and both disposable income over £1000 one would pay £250 per month and the other £238 per month.


I appreciate what you are saying and I am not so naïve to think they don't have more parameters around which they calculate risk but its the lack of clarity and openness that appears so unnecessary. If the industry were directed to be more open, then maybe the wider population could work their finances more effectively towards meeting the affordability and credit ratings rather than relying on the somewhat flawed MSE application process and companies like Experian etc.

Clearly they don't meet the criteria otherwise they would be one of the 51% of successful applicants being offered the representative rate. The lack of openness is completely necessary. Lenders don't want borrowers knowing how to poggle the figures on the application to get a loan they otherwise could not afford. The FCA regulates lenders and it's the FCA who check that 51% of successful applicants are offered the representative rate.

I don't know why you are bothering to contact Experian. Experian do not lend money so how they rate the applicants is irrelevant. Credit scores are explained on the MSE main site as are representative rates. Lenders also clearly, in large font, advertise the rates as being representative. All these threads from people whining about not being offered the representative rate are becoming very tedious. Accept your kids are in the 49% for this particular lender and get over it.

nubian

commercially sensitive how? that's just a stock answer. I searched the FCA site and could find no reference on how they policed and verified this or even if they collected this information. Again lack of transparency in an industry that has obfuscation at the heart of its business planning.

[Deleted User]

nubian wrote: »

commercially sensitive how? that's just a stock answer.

How could it possibly be a stock answer?

Publishing campaign by campaign acceptance criteria and rate distribution is hugely sensitive. How many lenders would want to hand that to their competitors?

foxy-stoat

nubian wrote: »

commercially sensitive how? that's just a stock answer. I searched the FCA site and could find no reference on how they policed and verified this or even if they collected this information. Again lack of transparency in an industry that has obfuscation at the heart of its business planning.

I think its more of a professional/polite way of saying to you, we dont have to tell you, so we wont.

Pixie5740

nubian wrote: »

commercially sensitive how? that's just a stock answer. I searched the FCA site and could find no reference on how they policed and verified this or even if they collected this information. Again lack of transparency in an industry that has obfuscation at the heart of its business planning.

Is this in response to me? It does help if you quote the person you are responding to.

I didn't say the information was commercially sensitive I explained why lenders do not want to openly advertise the criteria for achieving the representative rate. It would make it very easy for borrowers to manipulate their applications. It's not rocket science.

That was a very quick search of FCA, it must be a new record. I wonder how quickly you can find the Consumer Credit Directive which states that loan adverts must include a representative APR and that the representative APR must reflect 51% of business expected to result from the advert.

Not that reading it will alter the fact that the AA has decided you and your offspring are in the 49% gang. Nor will it make your thread about not being offered the representative APR and less tedious that all the other threads by people who weren't offered the representative APR.

How about this for a solution? If you aren't in the 51% lenders just straight up decline you. No more credit for the 49% gang.

kwame41

I think this thread has run its course.

Lots of good information / explanations given, OP not listening we are just feeding his anger.

I wont be posting again.

I realise the irony of posting to say I wont be posting again. :-)

iolanthe07

They possibly applied late in the month and the 51% criteria had already been reached. Why would lenders go on offering low interest when they don't have to?

nubian

Well forgive my scepticism and distrust of the financial services sector, I think you will find that most ordinary people are of the same opinion. There is a lack of accountability and almost manic sense of commercial secrecy linked in no uncertain terms to power.


Having visited their site what is clear is the FCA does not make it easy to find information, it certainly does not publish outcomes regarding what or if they collect this data, how or if they verify and validate it.


In a world where the customer is increasingly isolated, electronically pigeon holed and denied of the empathy of human contact in favour of profit algorithms, this industry which has the potential to wreck life plans or make them must be forced to be more transparent and demonstrably fair.


I know the responses will be cost saving & competiveness etc. etc.! but I remember going to speak with my bank manager as a young working man and working through an application for a loan, which was refused but she gave me a real world explanation on how that could be changed, I did and I was able to purchase my motorcycle less than a year later because of that advice. It wasn't about cynically learning the tricks to manipulate what the "computer says" it was proper business and advice given ethically and transparently.


Since that concept was discarded, the industry "progressed" to a point where they almost bankrupted the world, so forgive me if I am somewhat cynical when they cry commercial sensitivity or as in my kids experience, "yes we will give you the money" but "we will raise the advertised rate by 250% and financially stress you to the limit to get it" surely the Oxymoron is quite obvious to many.


So there we are, I am forced to accept with no data or explanation, that these two individuals are in the 49% but the worst of it is they have no idea how to responsibly improve that situation, which even in the criminal justice system would not happen.


Its not whining my friend its just challenging the status quo without which the worst of conservatism prevails but I thank you and the others for the interventions; I may not agree with you but at the very least, I think you all deserve to know why.

nubian

Yes I have told them to obtain a credit card and use it just for petrol and pay it off each month in full but this is partly supports my argument as its artificial and simply manipulating the system its not a true account of financial management simply a tracker that the algorithm can use.