Halifax Tempting Customers with Loans?

Written by Karen Bryan

loan marketingWhen I logged into my Halifax accounts at the weekend, the first thing that appeared on the screen was a page offering me a loan. When I clicked away from that onto my accounts listing page,  there was a personalised loan offer prominently placed there too.

I was offered a loan of £16,500, at a rate of 8.8% APR over 60 months. Now, I’ve no intention of taking out a loan, as we prefer to live debt free.

However if I were looking for a loan, I suppose it would be a useful starting point to have something to compare with what other lenders could offer me. At the same time, is it a good idea to tempt customers into borrowing money? I see this loan marketing as the price for free banking; there’s no obligation to take out the loan. At the end of the day, it’s up to us all to master our money and live within our means.

What do you think? Is this perfectly legitimate loan marketing to existing customers, or insidious inducement to get into debt?

5 Responses to “Halifax Tempting Customers with Loans?”

  1. I would say it’s inducement. Some people aren’t as strong as others and fall pray to ads like that.

  2. It’s a funny one. Banks make money through loans and investments so in one sense you could say it’s just good marketing, on the other hand should banks only be able to give us a loan if we approach them first?

  3. Money Bulldog – As it would appear that many people are in a lot of debt that they can’t afford to service, I can’t see it as a positive thing to be offered a lona when you log-in to online banking.

  4. I agree it’s not a positive thing, but if there’s going to be no regulation surrounding the constant marketing of payday loans in the media, can we really expect the banks to stop marketing resonably priced loans to their own customers. I just think there needs to be better regulation regarding what banks and other lenders can and can’t do when it comes to marketing.

  5. Money Bulldog – I’d argue that people need to take control of their finances, rather than just concentrating regulation of loan marketing.

    Far too many people want everyting now and end up borrowing money to fund these purchases. More self discipline required. I know that’s not what people want to hear, but I think it’s true.