PRESS RELEASE

Pre Approved Bank Loans Put Pressure on People

– Kelleher

Cork Deputy Billy Kelleher has hit out at banks that put unnecessary pressure on their customers by authorising unsolicited loans, usually at a high interest rate.

“ A worrying trend is developing whereby Banks are sending out letters to customers informing them that they have been selected for a pre-approved loan and if they return a form or make a simple phone call they can have it straight away,” said Deputy Kelleher.

“ However, what they don’t herald and which has to be located by examining the fine print is the rate of interest, which can be quite high, often the same as their overdraft rate,” said the Cork TD.

“ The idea that a faceless bank official is examining customer accounts and reeling off a serious of pre-approved and enticing loans is not comforting. Most people budget within their means and think carefully before committing themselves to a loan. Getting approval from the bank without asking for it is too tempting an option for some people and before they know it, they are suddenly in debt,” he added.

“ In many cases the letter is followed up by a phone call from the bank despite the fact that the customer has not returned agreed to the loan in an allotted time.”

“Attractive packaging does not take away from the fact that the customer did not ask to borrow money from the bank and that in a couple of minutes they could find themselves with a hefty debt. I would urge banks to think twice about this practice, which is unfair to customers,” concluded Billy Kelleher, TD.