loans 5.7% (Moneyback bank)

Rafter

Mikeysx,

Had exactly the same problem.

They seem to be stretching the rules and only offering the best rate if you accept the payment protection. Good for you standing your ground though - wish I had tried harder now!

Going to try an application elsewhere and go for the PPI and then cancel in the cooling off period - it seems to be the best way of getting the advertised deals.

You can see why - based on the office of fair trading preliminary conclusions it looks like the banks make 10 times as much income from a loan with PPI as one without - explains why you get the hard sell on the phone!

R.

jamesw4

I was actually pretty appalled by the application process. I applied online for a Moneyback loan today to replace a flexible loan I currently have with cahoot (9.5% variable / £7500 outstanding) and received the e-mail asking me to call them to receive the decision on the loan.

The guy I spoke to (Moses) was very pushy and a bit rude - asking several personal questions about my work and family. All I wanted was a quick decision to see if I could get close to their advertised 5.5% without payment protection and no matter how many times I said I wasn't interested he kept on asking me what I had in place should I be made redundant etc. In the end they offered me 8.9%, which was a bit disappointing considering I earn a reasonable amount and have just switched all my personal banking to Alliance & Leicester (this may have impacted my credit score I am guessing).

Regardless of their decision, I would not recommend the loan on the basis of the hard sell alone. When I applied to cahoot the entire process took place online and I was offered an initial rate of 6.9% a while ago despite having only graduated a few weeks previously!

Rude, pushy and very disappointing service from A&L.

philc_2

I've just been through the same process. Mental. Has anybody actually got 5.5% without the PPI?

Judep_2

I got the 5.5% with no PPI (£2,500 loan). Well, hopefully got it, I've sent the forms back, but not actually got the cash yet!!

M_Thomson

Mikeysx wrote:

I have a perfect credit history, and am a high earner,

Yes, having these things does not automatically guarantee you the loan at the lowest rate. You may not have passed the credit scoring that Alliance and Leicester use.

Debt_Free_Chick

If you read the adverts carefully, you'll find that they state the "typical APR" as 5.7%. Not everyone gets this - think about it. Why would someone with a poor credit record get the same rate as someone with an excellent credit record?

So, some will pay more and some will pay less.

Read the small print carefully and don't get taken in by the hype

chilli_dog

off topic slightly,

had a nice letter fro A+L when i got home yesterday.

Dear Mr. XXXXX (not my name)
My address
my post code.

thank you for applying for a A+L loan, but i am afraid that we were unable to offer you a a loan at this time.

Some nice person had tried their luck at getting a loan from my address.
20 minutes with their call centre staff giving them my details, dob etc so they can start an investigation.

waiting for the fraud dept. to call me back on monday.

lettie

yes i had the same problem i was offered 8.9 because i did not want the payment protection, the girl on phone was very rude i put the phone down.

philc_2

Debt_Free_Chick wrote:

If you read the adverts carefully, you'll find that they state the "typical APR" as 5.7%. Not everyone gets this - think about it. Why would someone with a poor credit record get the same rate as someone with an excellent credit record?

So, some will pay more and some will pay less.

Read the small print carefully and don't get taken in by the hype

Gosh, that was almost condescending enough to be flamebait. Thank goodness for smilies. ;-)

Oh well, to summarise, I think people are aggrieved at the pretty tough sell on the PPI and are suggesting that getting the 'typical APR' (which is quite clearly advertised as 5.5% not 5.7% incidentally) without the PPI is very hard even when they seemingly have few problems with credit elsewhere - i.e. it seems A&L are making the 'boxes' difficult to 'tick'.

The simple fact that I was asked for no further information on the phone than I gave in the online application (just re-hashing it) certainly justifies my annoyance at having to spend 10-15 minutes listening to somebody try to sell me PPI before finally admitting they wouldn't give me the 'typical' APR.

Debt_Free_Chick

philc wrote:

Gosh, that was almost condescending enough to be flamebait. Thank goodness for smilies. ;-)

Sorry you saw it that way as it was completely unintended.

Oh well, to summarise, I think people are aggrieved at the pretty tough sell on the PPI and are suggesting that getting the 'typical APR' (which is quite clearly advertised as 5.5% not 5.7% incidentally) without the PPI is very hard even when they seemingly have few problems with credit elsewhere - i.e. it seems A&L are making the 'boxes' difficult to 'tick'.

But the OP - to whom I replied - made no mention of PPI

The simple fact that I was asked for no further information on the phone than I gave in the online application (just re-hashing it) certainly justifies my annoyance at having to spend 10-15 minutes listening to somebody try to sell me PPI before finally admitting they wouldn't give me the 'typical' APR.

My point about the use of "typical" is shown clearly on the introductory page for loans on the A&L site here.

Before you apply, A&L state (on that page)
"6.1% APR is our typical rate for online loan applications of £7,500 - £20,000 to new customers. We will review your past credit history and other personal details, and the actual rate we offer may be higher depending on your personal circumstances."

It looks like the typical rate is now 6.1%

Regards