Rejecting Loan afeter contract rate setter

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elilanmeera
elilanmeera Posts: 2 Newbie
in Loans
Dear Money Savers,
I am not a genius so thought to give a shot to get some advise. My wife applied for a loan from rate setter couple of weeks ago on a Thursday,They took 5 days and finally emailed her saying that her loan has approved and log in to get to transfer the money. She did as said and all the pre contracts and loan contracts was emailed to her. this was happened in the morning and she got an email in the late evening saying the offer is declined. I was wondering is it legal for them to decline the offer after signing the contract. The email even said the money will be on the bank account by 6 pm and suddenly rejecting it. Any advice will be much appreciated. Thanks a lot.

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  • boo_star
    boo_star Posts: 3,202 Forumite
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    elilanmeera wrote: »
    Dear Money Savers,
    I am not a genius so thought to give a shot to get some advise. My wife applied for a loan from rate setter couple of weeks ago on a Thursday,They took 5 days and finally emailed her saying that her loan has approved and log in to get to transfer the money. She did as said and all the pre contracts and loan contracts was emailed to her. this was happened in the morning and she got an email in the late evening saying the offer is declined. I was wondering is it legal for them to decline the offer after signing the contract. The email even said the money will be on the bank account by 6 pm and suddenly rejecting it. Any advice will be much appreciated. Thanks a lot.

    In all likelihood she signed the contract first then they backed out.

    As a result the contract will be unenforceable.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Maybe she should check her credit files for anything untoward, check all 3.
  • sourcrates
    sourcrates Posts: 28,879 Ambassador
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    There is always a "we can back out at any time clause" in consumer credit contracts, the agreement is always weighed in the lenders favor, could be computer initially said yes, then something was flagged up, resulting in a decline.


    No point complaining, it will get you nowhere.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
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    To be honest, OP, they have probably done your wife a favour. Rate Setter are not the lowest APR!
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • elilanmeera
    elilanmeera Posts: 2 Newbie
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    Ok thank you guys for all your advice.
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