Personal Finance

Oh Scotiabank, how could you?

  • Last Updated:
  • Nov 9th, 2017 3:38 pm
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Deal Addict
Aug 24, 2016
2169 posts
1094 upvotes
pickles02 wrote:
Nov 8th, 2017 6:57 pm
I think most people fail to understand that pre-approval means exactly what it says: pre ( suffix means before) approval. "Before the approval", in other words. This is not "approval" at all.

It reminds me of the time I was shopping at Zellers for an easy chair. "Is this chair leather?" I asked the clerk. "Yes", he replied. "It's faux leather".

Who knew that we'd need a classical education to avoid clever traps set by bankers and advertisers!
I don’t know about anyone else, but I’ve received many pre-approved credit limit increases over the years on credit cards, and my credit has never been pulled for any of them.
Same scenario really.
If it’s not really a pre-approval, meaning a credit pull is required, then the lender sending the offer should present it as pre-qualified, not pre-approved.
[OP]
Deal Addict
Jul 18, 2016
1825 posts
661 upvotes
coolintheshade wrote:
Nov 8th, 2017 9:04 pm
If it’s not really a pre-approval, meaning a credit pull is required, then the lender sending the offer should present it as pre-qualified, not pre-approved.
Exactly. Pre-approval actually means exactly what is sais: you have already (pre) been approved. If that is not what was intended, they should write ( or say) pre-qualified, as you just said.
Deal Addict
May 15, 2013
1183 posts
182 upvotes
Montreal
I got a PRE-APPROVED LOC at Royal Bank. I asked in person and was told that no credit check needed as it's pre-approved. I accepted it and there wasn't a hard inquiry in my report. The same each time I got a pre-approved credit card limit increase. So, we can't generalize, it's case by case and Bank by Bank.
[OP]
Deal Addict
Jul 18, 2016
1825 posts
661 upvotes
iamthebest wrote:
Nov 8th, 2017 9:18 pm
I got a PRE-APPROVED LOC at Royal Bank. I asked in person and was told that no credit check needed as it's pre-approved. I accepted it and there wasn't a hard inquiry in my report. The same each time I got a pre-approved credit card limit increase. So, we can't generalize, it's case by case and Bank by Bank.
I've had many "pre-approvals". This is the first one to result in a hard enquiry. Its also the first time I've been suckered into creditor insurance - insurance that amounts to 12% of the limit NOT the balance.
Deal Addict
Nov 27, 2006
2188 posts
425 upvotes
Toronto
if u had a pre-approval it's unlikely the rep hit your credit from the branch.

if u opened a new bank account, that was when u were dinged probably.

anyway, i dont think the bureau hit is that bad. but anyway, if you're so mad complain. . likely it won't do anything for you really, just ruin the advisors day.
[OP]
Deal Addict
Jul 18, 2016
1825 posts
661 upvotes
sirex wrote:
Nov 8th, 2017 9:37 pm
if u had a pre-approval it's unlikely the rep hit your credit from the branch.

if u opened a new bank account, that was when u were dinged probably.

anyway, i dont think the bureau hit is that bad. but anyway, if you're so mad complain. . likely it won't do anything for you really, just ruin the advisors day.
I didn't open a new account I simply switched from the "Right size" to the "ScotiaOne" business plan.

http://www.scotiabank.com/ca/en/0,,544,00.html
Deal Addict
Nov 27, 2006
2188 posts
425 upvotes
Toronto
doesn't make any sense then.
Penalty Box
User avatar
Mar 23, 2016
753 posts
195 upvotes
OP has a right to expect Scotia to not do a hard hit for no reason.
"Obama is the quintessence of all that is wrong with America today.. people looking at the superficial which is skin color and ignoring idiotic behavior." - the poster AndySixx 😲 :facepalm:
Deal Addict
Feb 7, 2008
1499 posts
116 upvotes
Toronto
bewiseman wrote:
Nov 7th, 2017 6:56 pm
The enquiry is less of a concern. I am more upset with the insurance.

People, make certain that you don't trust the Bank agents. Read everything they ask you to initial. In a perfect world, they should tell you exactly what you're signing ( that's what my phone company [Telus] does), but .....

well...why do you walk into bank at the first place?
I had the same issues before, they subscribed me unwanted service and products.
Now, I use online and mobile banking all the time and big 5 banks also has secured messages once you login your online banking, so you can send messages to online adviser to deal with more complicate requests that are not supported through online banking features, such as request to waive banking fee, closing accounts, switch accounts type etc...they always replied me in 24 hours.

I found out secured messages communication is much more reliable and precise than verbal communication with sales. Everything is in writing and recorded, so it's very hard for sales to subscribe their customers unwanted service and products without getting their consent first.
[OP]
Deal Addict
Jul 18, 2016
1825 posts
661 upvotes
oajlu wrote:
Nov 8th, 2017 11:48 pm
well...why do you walk into bank at the first place?
I had the same issues before, they subscribed me unwanted service and products.
Now, I use online and mobile banking all the time and big 5 banks also has secured messages once you login your online banking, so you can send messages to online adviser to deal with more complicate requests that are not supported through online banking features, such as request to waive banking fee, closing accounts, switch accounts type etc...they always replied me in 24 hours.

I found out secured messages communication is much more reliable and precise than verbal communication with sales. Everything is in writing and recorded, so it's very hard for sales to subscribe their customers unwanted service and products without getting their consent first.
I tried. You actually can't modify your business banking plan without an in person appointment. If only it were as simple as doing everything over online banking.
Deal Fanatic
Mar 24, 2008
5166 posts
1204 upvotes
Toronto
bewiseman wrote:
Nov 8th, 2017 8:54 pm
Blah, blah, blah. Facetiousness, duly noted. I don't like being mislead or fooled. I'm happy for you that getting fooled is something that you can accept easily.
Sarcasm aside, here is a 3 step process for your recovery:

1) Accept the fact that all banks are basterds who lie from time to time to generate more business, at your cost.

2) Stop banking with a shitty bank such as Scotia where you can't do anything without physically visiting a branch.

3) Pay your bills on time and your credit will take care of itself. Stop worrying about your credit score, you aren't getting a medal for having a perfect 900 or whatever it is.
Illegitimi non carborundum
Deal Addict
Nov 25, 2014
1340 posts
554 upvotes
Newton Brook, ON
pickles02 wrote:
Nov 8th, 2017 6:57 pm
I think most people fail to understand that pre-approval means exactly what it says: pre ( suffix means before) approval. "Before the approval", in other words. This is not "approval" at all.
No, that's a myth spread by people who don't understand grammar. This is true where "pre" precedes a noun, like pre-tax or pre-game. With verbs, "pre" is an adverb describing how it was done: in advance. Pre-baking is baking in advance, pre-ordering and pre-paying is ordering and paying in advance. Pre-approving is approving in advance.

What's really happening with fake pre-approvals is that you technically are pre-approved, but not for what you think (as the fine print will specify). But where OP has pointedly asked if he was pre-approved for the account and the representative assured him that yes, he was, there is no way around it: it was a lie. The rep is either deliberately lying, incompetent, or both.
You need someone with an umbrella not a fork
[OP]
Deal Addict
Jul 18, 2016
1825 posts
661 upvotes
ksgill wrote:
Nov 9th, 2017 7:19 am
Sarcasm aside, here is a 3 step process for your recovery:

1) Accept the fact that all banks are basterds who lie from time to time to generate more business, at your cost.

2) Stop banking with a shitty bank such as Scotia where you can't do anything without physically visiting a branch.

3) Pay your bills on time and your credit will take care of itself. Stop worrying about your credit score, you aren't getting a medal for having a perfect 900 or whatever it is.
Ksgill, please re-read my original post.

Whether or not your point 1) is correct, it still isn't acceptable. We shouldn't simply laugh these things off. I directly asked if this was truly a pre-approval. I directly asked if I would receive a hard enquiry. I directly stated to him that I was trying to stop all hard enquires on my credit report, and stop all applications that required hard enquiries, so that I could correct a trend of too much activity on my credit report. I was told it was truly a pre-approval. I was told that there would be no hard enquiry. I was told that he understood my concern about credit.

As noted in the post above, HE LIED TO ME!

Now, in your world, lies may be acceptable - things we should "sarcastically" laugh off, but I don't consider this attitude acceptable. We should not tolerate this in our society when we are dealing with institutions where trust is a key issue.
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User avatar
Nov 19, 2004
7189 posts
981 upvotes
Cambridge, ON
I do agree that the banks was in the wrong and being deceitful. If they told you there would be no hard check, then there should be no hard check. I would definitely put in a complaint.

That said, it is only a temporary hit to your score. I wouldn't worry about it. If you are paying all your bills on time, I am sure your credit score is just fine. I always assume there will be a hard check regardless. If you wanted the card, then you got your card. You would have had to go through an approval process anyway to get it if you applied for it directly yourself. If you didn't need the card, I wouldn't have taken it regardless of "pre-approval" or not. No point in collecting credit cards that you don't need.
[OP]
Deal Addict
Jul 18, 2016
1825 posts
661 upvotes
don242 wrote:
Nov 9th, 2017 9:05 am
If you didn't need the card, I wouldn't have taken it regardless of "pre-approval" or not. No point in collecting credit cards that you don't need.
Yes, point taken. I actually took it because I am currently relying on an AMEX Platinum Business charge card. There is the rare occasion where this card is not an option for my business spending, so I decided that the Visa was likely a good idea. I didn't really need it, but I figured that if they were offering it to me without a "price tag", then why not.

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