Unfair Interest Rates based on Address?

2

Comments

  • boo_star
    boo_star Posts: 3,202 Forumite
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    If it's your "soon to be address" then you won't be on the Electoral Roll which would likely make you a higher risk.
  • jimbo26
    jimbo26 Posts: 954 Forumite
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    Don't forget the rate you see on the eligibility checker is not necessarily the rate you will be offered.
  • tizzwoz
    tizzwoz Posts: 16 Forumite
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    jimbo26 wrote: »
    In answer to your question 'is it legal'. Yes, it's perfectly legal for companies to offer credit at different rates, otherwise everyone would get exactly the same rate.

    But that's exactly my point. I am the same person. My income is exactly the same. The only thing different is the address.
  • tizzwoz
    tizzwoz Posts: 16 Forumite
    First Anniversary Combo Breaker
    boo_star wrote: »
    If it's your "soon to be address" then you won't be on the Electoral Roll which would likely make you a higher risk.

    But then why do I get a better rate at my friend's address at which I am not registered either?
  • tizzwoz
    tizzwoz Posts: 16 Forumite
    First Anniversary Combo Breaker
    jimbo26 wrote: »
    Don't forget the rate you see on the eligibility checker is not necessarily the rate you will be offered.

    I wasn't using the MSE eligibility checker, I was using the M&S page (can't post the link here). I understand that the rate eventually offered may be different. What I don't understand is how the rate offered varies purely based on address, nothing else.
  • tizzwoz
    tizzwoz Posts: 16 Forumite
    First Anniversary Combo Breaker
    Bermonia wrote: »
    Then what was the point of your post?!

    You have been given reasonable answers, if you don’t like them then ignore them - doesn’t make them any less correct however.

    The point of my post is "how can it be legal to give people different interest rates solely based on their address?".
  • robber2
    robber2 Posts: 558 Forumite
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    tizzwoz wrote: »
    The point of my post is "how can it be legal to give people different interest rates solely based on their address?".


    What is your reason for believing that it would not be legal?


    Rob
  • Bermonia
    Bermonia Posts: 977 Forumite
    First Post
    Interest rates are derived from a form of risk assessment - one of many factors will be address, as some errors have higher percentages of people defaulting than others, also if addresses being used don’t match up with credit file this will raise alrarms and may lead to higher rates, time spend at an address... are you finally getting the idea?

    In terms of legality and lender doesn’t have to lend to you at any rate or even at all - it is a commercial decision for them alone to make.
  • jimbo26
    jimbo26 Posts: 954 Forumite
    Name Dropper First Post First Anniversary
    tizzwoz wrote: »
    The point of my post is "how can it be legal to give people different interest rates solely based on their address?".

    The same reason it is legal for insurers to give the same person a different rate depending on their address.

    You don't even know what rate your are going to be offered as you haven't made an application.
  • Uberior
    Uberior Posts: 8 Forumite
    Have you cross-referenced the addresses with the deprivation score?


    Can be interesting.
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