Frozen food giant Iceland is to offer customers interest-free loans as part of a new finance scheme amid the cost of living crisis. The supermarket has already rolled out successful trials of the scheme and managing director Richard Walker has asserted repayments would be manageable and loans would only be made to customers who passed a background credit check. However, financial advisor Saleem Shafi raised concerns over the loan scheme’s initial credit check, suggesting a flaw in the system could mean Iceland was “cherry-picking” who to lend money. In a confusing twist, Mr Walker himself confessed he had also been rejected from his own loan scheme after completing the required soft credit check.
Speaking on Good Morning Britain, Mr Shafi, deputy CEO of debt advice charity Money Buddies, said: “I wonder if there’s a bit of cherry picking going on here.
“I’ve just done the soft credit check myself and, believe it or not, I’ve just been refused.
“I’ve been told that it is unlikely I will be accepted.
“It will be really interesting to see who really is taking out this card.”
Good Morning Britain host Robert Rinder added: “That’s quite an important thing.
“You’re talking about people with almost certainly the most challenging, well, bad credit scores. Saleem can’t get access to it.”
Mr Walker replied: “And I couldn’t – I applied yesterday.”
Mr Rinder, confused at the comments of the Iceland chief, asked: “So something doesn’t work?”
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