You’ve probably heard of FOMO (Fear Of Missing Out) but what is FrOMO? It’s the Frustration Of Missing Out;
'the feeling of anger and disappointment you get when you miss out on the advertised price when shopping online.'
It can often happen with flights, holidays, gig tickets and of course, personal loans.
Sound familiar? We commissioned a survey in 2018 and again in 2019 and found that almost three-quarters* of people admitted to getting FrOMO because of ‘teaser’ pricing advertised by brands online. Here’s what else we found out when we surveyed consumers.
* 2,000 UK consumers surveyed by 3Gem, 2019
Shopping online is the norm for many people in the UK because it’s convenient. But when it comes to how you shop online, it differs from person to person! With so many brands fighting for your attention, you’ve probably been subjected to online advertising promoting ‘too good to miss’ prices or deals.
Are you the type of shopper that gets sucked in by these adverts and then gets frustrated when you can’t get those “teaser” prices you were promised? Or maybe you’re the kind of person that will pay anything to get what you want?
Take a look at our shopper profiles and see if you can spot yourself.
Getting a personal loan can be a massive cause of FrOMO. A recent report conducted by the Centre of economics and business research (Cebr) found that UK borrowers feel misled** by advertised ‘Representative’ APRs on personal loans.
While the representative rates advertised by leading UK lenders for the average loan value (of £9,000) range from 2.8% to 4.9%, the actual average APR paid by a borrower for a fixed rate personal loan is 7.3%**. This is reported to be costing UK personal loan customers an estimated £204 million a year more than they initially expected.
No wonder 63%** of surveyed loan applicants in the past two years feel dissatisfied with the way that representative APRs are being used, according to the Cebr report. At Shawbrook we’ve chosen to do things differently, we’re committed to transparency and we promise to be honest, we won’t use teaser rates in our advertising as we feel they are misleading and when you get a quote from Shawbrook, we offer a guaranteed personalised rate right from the start.
** Cebr 2018, ‘Are consumers being misled by Representative APRs?’
With a Shawbrook personal loan, there is clarity from the outset. We’ll give you an instant quote and offer you a guaranteed, personalised rate with no impact on your credit score.
You can apply for a Shawbrook Bank Personal Loan for a variety of reasons.
The rate you are offered will depend on your individual circumstances.
All loans are subject to status. The interest rate offered will vary depending on our assessment of your financial circumstances and your chosen loan amount.
Representative Example: for comparison purposes 12.9% APR Representative Fixed based on a loan of £10,000 repayable over 60 Months. Monthly payment of £223.43 total amount repayable £13,405.80.
We’re standing by to help with your application.
Call us on 0345 600 6260
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