OFT clamping down on fee charging brokers-1311
It finally seems as though the Office of Fair Trading have had enough of the shady practices of those loan brokers charging upfront fees, be they for online guarantor loans or general unsecured bad credit loans..
We have mentioned this many times before here at anytypeofloan.co.uk but our musings seem to fall on deaf ears because every day there are another5/6 people who come to us after paying an upfront fee of £70/80 only to find (surprise surprise!) that no loan is forthcoming and that the broker’s claims of ‘we have found you a loan, guaranteed!’ are nothing more than a simple tactic to part the potential borrower with money that theycan ill afford to lose.
There is a report here that goes into greater detail, OFT warns credit brokers about fee charging.
Sadly and regardless of the fact that the people being targeted are those in a generally poor financial position, the problem doesn’t seem to have gone away and before people start accusing us of having a vendetta, we have said on many occasions before that we have no issues charging people for the work that goes into providing a loan. In fact our belief is that there should be a charge for the work involved but let’s be fair about this…How can you charge someone a fee who is unemployed or on benefits? How can you charge a fee to someone and then not provide them with a loan as you agreed? How can you charge a fee to someone asking for a £3,000 loan and then offer them £500 and think that that is acceptable?
You can see the full report from the OFT, OFT warns credit brokers about unfiar practices.
