Online application offer different to the one by post

Options
Hi - just curious whether this is standard practise, or should I be annoyed and call them to make a complaint.

I applied online with a bank and was told I would qualify for a 3.1% APR based on the details provided on their site, a soft credit check, and through my experian credit report.

On the site once I hit apply, they said they would be sending me documents for me to sign and send back. On the email it said: "Thank you for your application, we need to look into your application further."

When I received the letter, it was very congratulatory 'Congratulations, you've nearly completed your application with us,,,'

But the rate had jumped from 3.1% to 9.9% - a ridiculously high difference.

Should I complain and ask why was I taken down the garden path and why is the letter suggesting this is what I had agreed to, or should I grit and bear it and mark this down as standard practise for banks to do this?

Thanks

Comments

  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    Options
    A soft check will come with a disclaimer that the offer may change when a hard search is carried out, which is what has happened here.

    It happens, and it's very unlikely the bank is going to deliberately lead their customers "down the garden path" as you suggest, what's the point?

    Maybe give somewhere else a try but I suspect the offer won't be much different.
  • Jack57
    Options
    boo_star wrote: »
    A soft check will come with a disclaimer that the offer may change when a hard search is carried out, which is what has happened here.

    It happens, and it's very unlikely the bank is going to deliberately lead their customers "down the garden path" as you suggest, what's the point?

    Maybe give somewhere else a try but I suspect the offer won't be much different.

    Thanks - thought that might be case. I was just more miffed by the letter. It felt like: "Congratulations, we're ignoring the rate you applied for but you should be delighted with this awful offer - send back your form now you're so close..!"
  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    Options
    Jack57 wrote: »
    Thanks - thought that might be case. I was just more miffed by the letter. It felt like: "Congratulations, we're ignoring the rate you applied for but you should be delighted with this awful offer - send back your form now you're so close..!"

    You may have viewed it as you applying for a rate but that's not really how it works. You apply for an amount.

    Debatable if the offer is awful, it's likely that it's an appropriate offer based on your finances/history.
  • Jack57
    Options
    boo_star wrote: »
    You may have viewed it as you applying for a rate but that's not really how it works. You apply for an amount.

    Debatable if the offer is awful, it's likely that it's an appropriate offer based on your finances/history.

    You apply for an amount yes but the rate is the most important factor or you would just apply with anybody?!

    It's a minefield because if your Experian score is 999 it's very hard to know what is causing a disappointing offer.
  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    Options
    Jack57 wrote: »
    You apply for an amount yes but the rate is the most important factor or you would just apply with anybody?!

    It's a minefield because if your Experian score is 999 it's very hard to know what is causing a disappointing offer.

    Your score is meaningless, as you've found out.

    And I'm not saying the rate isn't important but it's always advertised as a representative rate, not a guaranteed one. That's just how loans work. Same with credit cards but they have variable credit limits too.
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    Combo Breaker First Post
    Options
    Lenders don't see the credit scores - they're marketing gimmicks, nothing more.

    You just don't fit that lender's profile of an A1 candidate for lending money to. Could be for any one of a hundred reasons.
    "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."
  • Jack57
    Options
    Gaz83 wrote: »
    Lenders don't see the credit scores - they're marketing gimmicks, nothing more.

    You just don't fit that lender's profile of an A1 candidate for lending money to. Could be for any one of a hundred reasons.

    To clarify, I'm not bemoaning the decision, just the method and way it has been communicated to me. If they hadn't have suggested I would be getting the rate I applied for then it wouldn't be an issue. It's the fact is has got to this stage and I've been given a 'Congratulations' for something I didn't apply for.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    Options
    Standard practice - lenders rely on folk seeing 3% interest rate in 16 font and not reading the terms or qualifications which will be in a much smaller font.

    Who is the lender and we can take a look how they worded it?
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards