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Doesn't that apply to some, most or all other lenders? For example, if I recall correctly, An Post/One Direct quote attractive headline rates that only apply to certain customers. Or are they linked to GE too? I thought that most other lenders advertised their best rates with something in the small print that not everybody will get it. Tracker mortgages that apply to certain LTV ratios and/or mortgage amounts and/or to only FTBs/non-FTBs would be other examples. I don't necessarily see that financial institutions should be reprimanded for advertising in this way unless their advertisements are obviously misleading and imply that anybody and everybody will qualify for the advertised rate or make other false claims.Brendan said:There is a difference between GE Money and other lenders. The other lenders tend to have a rate whch applies to everyone. GE advertise the 8.9% rate, but I gather that few get it.
SteelBlue05 said:People need to realise that all these quoted APR rates and other interest rates are often "list" prices as you would have with buying a car. Its the starting point for negotiation. You wouldnt walk into a car dealership and buy a car at list price, yet plenty of people take loans etc at whatever rate the bank first suggests.
ClubMan said:Doesn't that apply to some, most or all other lenders? For example, if I recall correctly, An Post/One Direct quote attractive headline rates that only apply to certain customers. Or are they linked to GE too? I thought that most other lenders advertised their best rates with something in the small print that not everybody will get it. Tracker mortgages that apply to certain LTV ratios and/or mortgage amounts and/or to only FTBs/non-FTBs would be other examples. I don't necessarily see that financial institutions should be reprimanded for advertising in this way unless their advertisements are obviously misleading and imply that anybody and everybody will qualify for the advertised rate or make other false claims.
ClubMan said:"This"? You mean GE's advertisements in particular or the idea of "cherry picking" rates being highlighted in general?
Financial institutions are not charities and should not be obliged to offer credit to anybody and everybody or the same rate to all customers. The former would work against prudential operation of the business and wouldn't please the shareholders while the latter would work against competition and penalise low risk consumers for the benefit of higher risk ones.
With our partner GE Money, we offer both a member and a non-member personal loan.
All EBS Members are entitled to our member personal loan rate which is
currently 8.00% APR variable. This ranks in the top quartile of best
buy tables.
For customers who have no relationship with EBS ie are not members and
do not transact any business with the society, we offer a non-member
personal loan with a competitive rate of between 8.9% and 12.5% APR
variable - subject to risk assessment and status.
We advertise our member rate and our advertising is very clear in that this rate is available to EBS Members only.
Brendan, as you know, it is not hard to become a member of EBS. The vast majority of our business written is through our member personal loan at 8%.
In the UK, yes, but do you have a link to any Irish legislation/regulation on the issue?lff12 said:Advertising one rate but failing to offer it to a certain number of clients.
According to [broken link removed] which is the UK watchdog:
"The Regulations define the typical APR as an APR at or below which the
advertiser reasonably expects, at the date on which the advertisement is
published, that credit will be providedunder at least 66 per cent of the
agreements he will enter into as a result of that advertisement."
So if an advertiser is selling a product with an advertised typrical APR of 6.5% and offering more than one third of applicants a higher rate, then any advertising can be deemed misleading.
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