Does the bank legally have to honor a quote given for a loan?

[kittykat83]

I received a quote today for a loan and I think the advisor may have made a mistake when typing in the interest rate and given me a much better offer than we talked about! If I produce the quote, are the bank legally obliged to give me the loan at the rate they quoted?

Thanks

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[lookinforinfo]

Not until both you and them have signed the document do the particulars
become legally binding on both parties.

Depending on the quality of the company you are dealing with, it might be a
deliberate ploy to get you to sign the contract and then point out their
error after. They will have to send you a new agreement, but they now know
you are serious about wanting a loan and hopefully you won't look at other
quotes and you have made a decision to deal with them. Harder for you to back out too when faced with the options. I imagine that should be a rare
situation, but is a possibility to bear in mind.

The answer is NO, just giving a quote for an amount which is not credit scored does not mean that they have to give you the rate. Consider say I get a quote for a loan for this big brand spanking sports car and i get a quote at say 6%, well, a few months later i go back and the interest rate offered has gone up, i cannot demand the 6% for my loan because they have merely given me a quote. It is only on application that the rate quoted can be binding and the application signed.

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[bazak1]

sorry kittykat83 but both lookinforinfo and nattie are correct.
you only have a quote, and you have signed nothing. if it had been agreed and signed then you may have had a chance, but as a quote, then no they dont have to honour it. basically all it is is an approx' guide to what you would be expected to pay, but your actual amount will be decided on the day you sign. i know this isnt exactly the same thing but it's similar....ring the Argos reserve line and reserve the item. you will always hear the message " the price you pay will be the price in store on the day of collection".
it would have been nice getting that deal, and i bet you thought your birthday had come early, but sadly, its not to be. S O R R Y .

[JonCris]

Originally Posted by kittykat83

I received a quote today for a loan and I think the advisor may have made a mistake when typing in the interest rate and given me a much better offer than we talked about! If I produce the quote, are the bank legally obliged to give me the loan at the rate they quoted?

Thanks

No they don't but read this

The Fraud Act 2006 came into force on the 15th

The act is small as it contains only 16 sections plus 3 schedules.

All Theft Act deception offences are abolished to be replaced by 3 new fraud offences: fraud by misrepresentation.......f raud by failing to disclose information and fraud by abuse of position..

Under section 1 a person is guilty of fraud if they are in breach of any offences in sections 2,3,4.

Under Section 2 representation must be made dishonestly which is established under the two-stage test as set out in Rv Gosh (1982) QB 1053, 75 Cr App R 154 in which the defendant was dishonest by the standards of ordinary people

Subsection (1)(b) requires that the representation is made with the intention of making a gain for himself or causing a loss or risk of loss to another. Loss and gain are defined in section 5 as being money or property

Section 3: Fraud by failing to disclose information
18. Section 3 makes it an offence to commit fraud by failing to disclose information to another person where there is a legal duty to disclose the information. A legal duty to disclose information may include duties under oral contracts as well as written contracts. The concept of "legal duty" is explained in the Law Commission's Report on Fraud, which said at paragraphs 7.28 and 7.29:

• "7.28 ..Such a duty may derive from statute (such as the provisions governing company prospectuses), from the fact that the transaction in question is one of the utmost good faith (such as a contract of insurance), from the express or implied terms of a contract, from the custom of a particular trade or market, or from the existence of a fiduciary relationship between the parties (such as that of agent and principal).

• 7.29 For this purpose there is a legal duty to disclose information not only if the defendant's failure to disclose it gives the victim a cause of action for damages, but also if the law gives the victim a right to set aside any change in his or her legal position to which he or she may consent as a result of the non-disclosure. For example, a person in a fiduciary position has a duty to disclose material information when entering into a contract with his or her beneficiary, in the sense that a failure to make such disclosure will entitle the beneficiary to rescind the contract and to reclaim any property transferred under it."

• More specifcally, section 3 states:

Quote:

• 3 Fraud by failing to disclose information
  A person is in breach of this section if he-
  • (a) dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and
  • (b) intends, by failing to disclose the information-

o

• • • (i) to make a gain for himself or another, or

o

• • • (ii) to cause loss to another or to expose another to a risk of loss.

Quote:
5 "Gain" and "loss"
(1) The references to gain and loss in sections 2 to 4 are to be read in accordance with this section.
(2) "Gain" and "loss"-

• (a) extend only to gain or loss in money or other property;

• (b) include any such gain or loss whether temporary or permanent;

and "property" means any property whether real or personal (including things in action and other intangible property).
(3) "Gain" includes a gain by keeping what one has, as well as a gain by getting what one does not have.
(4) "Loss" includes a loss by not getting what one might get, as well as a loss by parting with what one has.

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[Gertie100]

Kitty, when you say quote do you mean the actual paperwork for you to sign and send back? The one which already has their signature on it?
Because usually when you get quote information either over the phone, or on internet, they agree in principle, then send you the details out...
I had it with A&L, they agreed in principle to 5.9% and when I got the paperwork it was 10.1%!!! Obviously went straight in the bin...
Cos ifs it not a quote and its the actual loan documents with a signature on it from the lender...

[kittykat83]

Ok thanks everyone for your replies thats all I needed to know!! I half guessed that would be the case but thought I'd check.

JonCris, are you saying that if I were to present the quote back without disclosing I thought they'd made a mistake that I'd be acting fraudulently? Or have I misunderstood?

I'm not planning on doing anything with it, just for the record!!!