AA loan process - help!
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alwaysmiserable
Posts: 4 Newbie
in Loans
First post here and very confused. I applied for a loan with the AA and the website stated that an application made online usually results in an instant decision online. This seemed to be supported by the contents of the webpage which loaded once I made my application. I printed this off and it states “your application has been approved” and gives a loan offer with no mention of conditionality. It then asked me to upload the credit agreement which will be sent to me. The subsequent email was sent the same day and stated “before we can get the money to you we need to you to read, sign and date your loan agreement” adding that the next steps are “once we’ve received your agreement, we’ll review it and the money should be in your account within 3 working days.” This is slightly longer than the 2 working days given in the FAQs but clearly not a difference which would render either the FAQs or the email misleading. Hence, at this point my legitimate understanding was that my application had been approved and that all I needed to do was upload the signed credit agreement on receipt; I could then expect the money within 2-3 days. There was no suggestion that any other steps were necessary.
I then received a letter dated 5th April 2018. In this, things became a little less clear. It states that once I have uploaded my credit agreement it will be reviewed by the “relevant teams” and I will be given a “final decision” in 2 days. This is inconsistent with the earlier communications in that it suggests that the review of the credit agreement is not a mere check of accuracy following approval (signature in the correct place, absence of alteration etc.) but somehow part of an ongoing review process, meaning that approval was not in fact given online. This contradicts the FAQs, the webpage loaded on approval and my initial email, all of which stated that the application had already been approved and that I could expect the money within a short time of uploading my signed credit agreement. Additionally, there is no reference to when the money should arrive following this “final decision.”
Early this morning I uploaded the credit agreement and things became even more confusing. The screen after upload states that I can now expect to receive a “final decision” in 5 working days as opposed to the 2 days given in the letter. Again, there is no reference to when the money will arrive following this final decision.
Accordingly, we have gone from approval online and money within 2 working days of uploading the signed loan agreement (FAQs) to approval online and money within 3 days of uploading the signed loan agreement (webpage on application and email of 4 April) to “final decision” within 2 days of uploading credit agreement and no indication of when the money will be received (letter of 5 April) to “final decision” within 5 working days and no indication of when the money will be received (document upload webpage this morning).
Is this normal? It seems completely unclear and at least one of the communications must be misleading because they contradict each other. They have done the credit check and they have not asked me for any additional documents so I have no idea what they still need to review. I am also more than a bit annoyed that have moved the goalposts from a position which seemed to be quite clear. I totally get that they need to check I haven't changed the interest rate on the credit agreement or something so from that point of view the agreement requires "review" but this shift in position has got me very jumpy!
Whatever happens I will be complaining because this type of thing is, at best, poor practice and, at worst, in breach of FCA rules requiring communications to be "clear, fair and not misleading" - hopefully the fact they just asked for the credit agreement is a good sign but I am quite upset, especially since they have done the hard credit check so I can't really "shop around" now.
I then received a letter dated 5th April 2018. In this, things became a little less clear. It states that once I have uploaded my credit agreement it will be reviewed by the “relevant teams” and I will be given a “final decision” in 2 days. This is inconsistent with the earlier communications in that it suggests that the review of the credit agreement is not a mere check of accuracy following approval (signature in the correct place, absence of alteration etc.) but somehow part of an ongoing review process, meaning that approval was not in fact given online. This contradicts the FAQs, the webpage loaded on approval and my initial email, all of which stated that the application had already been approved and that I could expect the money within a short time of uploading my signed credit agreement. Additionally, there is no reference to when the money should arrive following this “final decision.”
Early this morning I uploaded the credit agreement and things became even more confusing. The screen after upload states that I can now expect to receive a “final decision” in 5 working days as opposed to the 2 days given in the letter. Again, there is no reference to when the money will arrive following this final decision.
Accordingly, we have gone from approval online and money within 2 working days of uploading the signed loan agreement (FAQs) to approval online and money within 3 days of uploading the signed loan agreement (webpage on application and email of 4 April) to “final decision” within 2 days of uploading credit agreement and no indication of when the money will be received (letter of 5 April) to “final decision” within 5 working days and no indication of when the money will be received (document upload webpage this morning).
Is this normal? It seems completely unclear and at least one of the communications must be misleading because they contradict each other. They have done the credit check and they have not asked me for any additional documents so I have no idea what they still need to review. I am also more than a bit annoyed that have moved the goalposts from a position which seemed to be quite clear. I totally get that they need to check I haven't changed the interest rate on the credit agreement or something so from that point of view the agreement requires "review" but this shift in position has got me very jumpy!
Whatever happens I will be complaining because this type of thing is, at best, poor practice and, at worst, in breach of FCA rules requiring communications to be "clear, fair and not misleading" - hopefully the fact they just asked for the credit agreement is a good sign but I am quite upset, especially since they have done the hard credit check so I can't really "shop around" now.
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Comments
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You can't make anybody lend to you if they don't want to.
You can quote all kinds of T&C 's but obviously something in the application has made them look at it and they require further clarification.
There is nothing in your post about your credit files.
One hard search is not the end of the world - nothing at all stopping you shopping around but if you get the same result with your next application I would stop.0 -
It sounds like you have been approved and the funds will be released when they have finalised their standard checks. From what you have posted I don't see any reason for alarm bells although I agree the timescales are rather unclear.0
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I am very aware that lending me money is optional for them. However, compliance with FCA obligations is not. What my post was about was communications being so inconsistent that one or more of them simply them must be misleading. This is in breach of FCA rules. Nobody on the phone seems to be able to tell me which communication among FAQs/webpage uploads at different stages/email/letter gives the accurate position so I have written to express my concerns. I'll update as to how things go - will take it up with the FCA if need be.0
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alwaysmiserable wrote: »I am very aware that lending me money is optional for them. However, compliance with FCA obligations is not. What my post was about was communications being so inconsistent that one or more of them simply them must be misleading. This is in breach of FCA rules. Nobody on the phone seems to be able to tell me which communication among FAQs/webpage uploads at different stages/email/letter gives the accurate position so I have written to express my concerns. I'll update as to how things go - will take it up with the FCA if need be.
FCA dont investigate individual complaints, you need to complain to the lender in this case AA then if not happy you go to the FOS. The AA are just a broker and maybe are restricted by BoI since they provide the loans.
Do update the thread with how you get on, I admit it is confusing re timescales.
Looked through the FAQ admittedly just breifly and can't see 2 days mentioned, up to 5 days are mentioned here
When will I know if I have been accepted for the loan?
In most cases you will get an instant decision online. In some cases we may require additional information or evidence of documentation, if this is the case we will be in touch with you by post within 5 days.0 -
alwaysmiserable wrote: »I am very aware that lending me money is optional for them. However, compliance with FCA obligations is not. What my post was about was communications being so inconsistent that one or more of them simply them must be misleading. This is in breach of FCA rules. Nobody on the phone seems to be able to tell me which communication among FAQs/webpage uploads at different stages/email/letter gives the accurate position so I have written to express my concerns. I'll update as to how things go - will take it up with the FCA if need be.
You might be better with the FOS. Once you've exhausted the AA complaints procedure (or Bank of Ireland who actually lend the money and have a reputation for poor administration).
The FCA won't be interested in an individual complaint.0 -
On the FAQs, there is the question you give to instant decision online or a subsequent request for additional documents. When I applied online I got the "approved" webpage loaded. If you scroll down on the FAQs you see the following:
What happens after my application has been approved?How soon will I get the money?
We will send your agreement out by post. You will need to check all the details, sign the agreement and return it to us in order for us to transfer the funds to your account. You will also be sent a copy of our Terms and Conditions, Pre Contractual Information (SECCI) and Important Information about your loan.
It is important that you read and understand the information contained within these documents. Please contact us if there is anything that you do not understand.
We aim for the money to be in your bank or building society within 2 working days once we have received your signed agreement.
As I said, until the letter of 5 April enclosing the credit agreement, everything was logical. Approval online, email of 4 April saying all I had to do was sign and send credit agreement and the money would be there within 2-3 days of receipt. Credit agreement duly arrived a couple of days later with no additional documents requested. Confirmed by phone that no request for additional documents. Things only became confusing in the covering letter enclosing the credit agreement which referred to a "final decision" within two working days and even more confusing when the webpage after the document upload talked about a "final decision" in 5 working days! It's the inconsistency which I find so annoying; they are entitled to use whatever processes they like but they are not entitled to misrepresent them!
Thanks for the advice on complaints etc. I know this is a separate issue from whether or not I am ultimately approved for the loan but this type of thing is stressful enough without lenders adding to it by failure to provide complete and accurate information.0 -
Just to update in case anyone is following this. I had to be referred "upwards" but I spoke to a really helpful guy today. Essentially, even those on the end of the phone at AA do not get to see the actual letters and emails you have been sent and thus only see "templates" which do not, in fact, accord on key points with what was actually sent. Thus, not surprisingly, they are all at sea when trying to advise what is going on. The poor lady I first spoke to was reading out bits of a template email which were not included in the email I actually received and she did not have access to what was actually sent to me.
Anyway, this guy explained that the "final checks" at this point (given the fact no further documents have been requested and all I had to do was sign the credit agreement) were really just to make sure that all the numbers etc. had been inserted into the right place and that there was nothing of glaring concern which had been missed. Hence, he said I should keep checking my bank account. Obviously, something could still go wrong (I wouldn't expect them to be bound by anything if they suddenly found out I had lied on the form or been declared bankrupt or something!) but there is really nothing to be concerned about at this point.
However, the most interesting thing was that he had already spoken to two others today with identical concerns so he was actually quite pleased to be able to flag this once again since it can't be fun for him having to deal with confused customers who are receiving contradictory messages. Hopefully they will put things right for their employees' sake!
Thanks again for all the advice.0 -
Hi @alwaysmiserale just wondering how long it took in the end for your loan money to come through.
I did an application online Monday which said accepted and also signed electronically online.
Email says congratulations loan approved subject to final checks money will be in bank within 2 working days. It’s not there yet. I know I’m being impatient but the ‘final checks’ bit just is so annoying makes you worry!0 -
@alwaysmiserable0
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Hi, Have either of you Katielou or Alwaysmiserable actually got your money, and if so how long did it finally take?
I applied late on 9th May and received the same acceptance and signed my online agreement which said 2 working days to get the money subject to final checks.
Ive been asked for no further information and have an Experian credit score of 999 so cant see whats causing a delay.
I don't want to start going elsewhere but am struggling to understand the process and don't want to keep having applications at different places. From the sounds of it the call centre doesn't get far due to being a broker and so anybodies real world experience of timescales would be a help as I need the funds sooner rather than later0
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