Tide, i hope you’re reading this. Tideans are very angry and you need to do something asap. Even if it’s just a message to your customers.
This is from the Money Saving Expert website yesterday:
Martin’s analysis: ’ For many, bounce back loans have been a speedy lifeline, but for others the story has been VERY different ’
MSE’s founder Martin Lewis said: "For many, bounce back loans have been - as they were touted by the Chancellor - a speedy lifeline to support businesses and their owner’s incomes. Yet for a substantial number of people the story has been very different with a catalogue of problems.
"One in five have faced delays of over a month. Sole traders, in particular, have suffered being over three times as likely to be rejected as limited companies. Similar is true of small businesses which didn’t have business accounts with a firm offering one of these loans, as they’ve struggled to get any help.
"A significant number cited credit checks as a reason for rejection, even though the loans were touted as ‘available to all - no credit checks needed’.
"And of course while the loans were meant to be lender-agnostic as all banks were offering the same product, the experience certainly hasn’t been. While Lloyds has 81% net positive feedback, its major competitor HSBC scored a shocking -45%. It was only beaten by challenger bank Tide at -90%, which has failed to give virtually any loans yet. Tellingly, both these two invited new customers to apply – many of whom have had poor experiences.
“We will be sending a dossier of our findings to the Treasury, the FCA and the British Business Bank to hopefully improve the process going forward.”
HSBC, TSB and Starling hand out most rejections
While Lloyds Bank and RBS top the acceptance league with 95% or more of total applications given loans, not all banks were as keen to say yes.
Starling only accepted 62%, and TSB (72%) and HSBC (80%) also had significantly lower figures, though many of the HSBC rejections were for new customers.
Unfortunately we can’t give you a full picture of the likelihood of rejection from challenger bank Tide, as a staggering 97% of applications are still stuck in its system awaiting a decision.