R
ratzfatzhosenlatz
Guest
I have questions about the legal aspect of my banks behavior:
I am a fairly new immigrant to Canada and have a non-existing or rather very new credit rating which effects my purchasing power. Although I do have excellent and extensive credit ratings in Europe, it will not be considered and I had to start from scratch.
Fine, & I have come to terms with it.
Now I have applied for a car loan online with one of the big banks, with a published rate of 5.45%, no asterisks, no limitations (depending on credit rating etc etc.) It appeared to be a flat published rate, although variable.
I received a call from their loan and after answering a few questions about employment and whereabouts I was pre-approved..at 7.75%, a whopping 2.2% over the initial published rate. I inquired and ws told that based on my lack of history bla bla...even after mentioning that their website does not stipulate any limitations.
I decided to bite the bullet and go with it. Once I purchased a vehicle and produced a bill of sale for the bank to proceed with the loan, the interest rate got jacked up again, by another .25%.to 8.04%!
I asked the bank guy if he was serious, all the info I received was that it is the systems fault as my final purchase prize was a few hunbdred $ below the initial loan inquiry, therefore the loan amount was less and the interest goes up.
I felt that they got me by the balls and screw the last penny out of it...
Question: Is this common practice in Canada? Is this last minute interest rate increase legal, after being pre-approved and going past initial application processes? Is there anything that could be done about this business practice (besides not taking the loan and going elsewhere)?
I was thinking of the BBB but do not consider them very consumer oriented.
I have a very, very similar encounter with my car insurance as well, just to mention..
Appreciate any feedback! Thanks in advance.
I am a fairly new immigrant to Canada and have a non-existing or rather very new credit rating which effects my purchasing power. Although I do have excellent and extensive credit ratings in Europe, it will not be considered and I had to start from scratch.
Fine, & I have come to terms with it.
Now I have applied for a car loan online with one of the big banks, with a published rate of 5.45%, no asterisks, no limitations (depending on credit rating etc etc.) It appeared to be a flat published rate, although variable.
I received a call from their loan and after answering a few questions about employment and whereabouts I was pre-approved..at 7.75%, a whopping 2.2% over the initial published rate. I inquired and ws told that based on my lack of history bla bla...even after mentioning that their website does not stipulate any limitations.
I decided to bite the bullet and go with it. Once I purchased a vehicle and produced a bill of sale for the bank to proceed with the loan, the interest rate got jacked up again, by another .25%.to 8.04%!
I asked the bank guy if he was serious, all the info I received was that it is the systems fault as my final purchase prize was a few hunbdred $ below the initial loan inquiry, therefore the loan amount was less and the interest goes up.
I felt that they got me by the balls and screw the last penny out of it...
Question: Is this common practice in Canada? Is this last minute interest rate increase legal, after being pre-approved and going past initial application processes? Is there anything that could be done about this business practice (besides not taking the loan and going elsewhere)?
I was thinking of the BBB but do not consider them very consumer oriented.
I have a very, very similar encounter with my car insurance as well, just to mention..
Appreciate any feedback! Thanks in advance.