Thread: RBS loan incorrect Reason for loan stated in order for it to be passed by the computer.

has anyone applied for a loan with RBS for debt consolidation and found that the reason for the loan was put down as home improvements to get it cleared by the computer?

to make this worse, I was living with parents at the time the loan was taken out, 3-4 years ago so how the hell would I take out a home improvement loan (lost all paperwork unfortunately).

Due to a rough period in my life and my ex sucking me dry, I struggled to keep up repayments and it wasn't until I got some forms from the Courts that I realised the loan was classed as home improvement loan. I sent the forms back about 2 years ago to the court disputing the loan and have heard nothing since.

Its not uncommon, nor is it illegal, just a descriptive term.

With my trusting head on I'd say it was either an error or a conscious decision by the salesperson to enable you to get the funds you were seeking. Its difficult to see how using the term "Home Improvements" would produce a "yes" decision if a debt consolidation lend didn't. The banks would rather see people sorting out their existing borrowing instead of someone in debt borrow more to do up a property.

The only difference that I know of between the two, is that Home Improvement loans used to available over ten years, whereas the maximum for all other purposes was seven years.

If your loan was for seven years or less, the bank could simply say it was a keying error. Nowadays, most loans face second vetting to ensure their purpose matches the borrowers situation - e.g. Home Imp loans for homeowners.