Unfair Interest Rates based on Address?

tizzwoz
tizzwoz Posts: 16 Forumite
First Anniversary Combo Breaker
in Loans
So I am looking to get a personal loan to finance a van, and while doing my research, I was looking at the M&S personal loan eligibility calculator.

As I am in between places at the moment, I started with putting in my previous address. I got an APR of 2,9%.

I then thought hmm, strictly speaking I don't live there anymore, so what happens if I put my soon to be address in - bang, APR goes up to 8,9%??? Literally the only thing changed was the address.

How is this fair?
Then, just to test something, I put in the address of a friend, and got yet another different APR of 5,9%.

Surely, I cannot be punished for living in a slightly less desirable area? I am still the same person, with the same employed income and the same credit score???
If anything, I should be getting a better rate, as my rent will be cheaper in that area and I will therefore be less likely to default on the loan??

Can anyone explain how this is legal? Haven't looked at any other lenders yet to see if it's the same with them, but found that the MSE eligibility calculator also gives different results based on address?

Thanks!
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Comments

  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    Combo Breaker First Post
    Maybe they think you're gaming the system - trying to put in different addresses to see what happens.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • BoGoF
    BoGoF Posts: 7,099 Forumite
    Name Dropper First Anniversary First Post
    It's the time spent at an address that matters not the address itself.....the longer the better.

    And I would stop 'playing' with the applications the way you are or you may end up with bigger problems.
  • tizzwoz
    tizzwoz Posts: 16 Forumite
    First Anniversary Combo Breaker
    BoGoF wrote: »
    It's the time spent at an address that matters not the address itself.....the longer the better.

    And I would stop 'playing' with the applications the way you are or you may end up with bigger problems.


    The time spent between my new address and my friend's was exactly the same. I didn't "play" with applications, I used their eligibility calculator.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
    Name Dropper First Anniversary First Post
    No, you applied for a personal loan quotation and you may not even have got the rate when you proceeded to full application.

    Its never a good idea to play systems this way or you may end up with a fraud marker.
  • Faith177
    Faith177 Posts: 2,927 Forumite
    First Anniversary First Post
    Also I would think it might be that on the new address if you haven't transfered all your details over council tax, bills, bank statements you may not pass internal validation checks.



    I work at an inusurance brokers and we get it loads when people have jsut moved we have to get extra id
    First Date 08/11/2008, Moved In Together 01/06/2009, Engaged 01/01/10, Wedding Day 27/04/2013, Baby Moshie due 29/06/2019 :T
  • jimbo26
    jimbo26 Posts: 954 Forumite
    Name Dropper First Post First Anniversary
    Why not just apply for the loan at your current address? Seems bizarre to me that you then decided to apply for a loan at an address you don't live at.

    Just keep it simple, you see loads of people on here with issues because they try to over complicate things.
  • tizzwoz
    tizzwoz Posts: 16 Forumite
    First Anniversary Combo Breaker
    BoGoF wrote: »
    No, you applied for a personal loan quotation and you may not even have got the rate when you proceeded to full application.

    Its never a good idea to play systems this way or you may end up with a fraud marker.


    No, I did not apply.
  • tizzwoz
    tizzwoz Posts: 16 Forumite
    First Anniversary Combo Breaker
    jimbo26 wrote: »
    Why not just apply for the loan at your current address? Seems bizarre to me that you then decided to apply for a loan at an address you don't live at.

    Just keep it simple, you see loads of people on here with issues because they try to over complicate things.


    Not really the point of my post, I did say I am between addresses at the moment, but thanks.
  • Bermonia
    Bermonia Posts: 977 Forumite
    First Post
    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.
  • jimbo26
    jimbo26 Posts: 954 Forumite
    Name Dropper First Post First Anniversary
    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.
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