Unsecured loan news
It’s interesting to note that this week here at anytypeofloan.co.uk, we have seen a marked increase in the the number of borrowers who have paid brokers an upfront fee. We are not going to bore you with more details of how they do it because we have covered it here before, scam warning upfront loan fees, suffice to say that it appears to be on the increase and there also appears to be more new scam outfits popping up that we had never heard of before.
Remember, don’t pay a fee to any broker or lender upfront because quite simply, there is no need to.
The other thing we have noticed this week is that there are also a number of new guarantor payday loan companies appearing. Nothing wrong in that at all and if it gives the lender in question more comfort (for comfort read security!) then that can only be a good thing as we want to see more lenders enter the marketplace so loan applicants have more choice. The only point I would make is that some of these companies are offering payday loans with a guarantor of up to £1,250. Now call me old fashioned but who on earth is able to borrow £1,350 for 30 days (or whenever the next payday is) and pay it back out of their wages? I’m guessing not many but then again I’m sure the object of the exercise is to snare the client to the degree that they cannot afford to repay it back in the 30 day period and just have to keep rolling it forward each month, for a tasty fee of course.
Payday loans definitely have their place and can be a valuable and neccessary addition to the unsecured loans sector, the only caveat we would place on this is…Ensure you are dealing with an ethical company with fully transparent fee structures and repayment terms, otherwise you really do not know what you are signing up for and trying to wriggle free from that contract could be problematic.
And finally, spare a thought for our neighbours in Northern Ireland. Bereft of mortgage lenders, secured loan companies and unsecured loan providers, they really do get a raw deal. If a lender was to launch guarantor loans in the province then they really would clean up and make a lot of profit. The borrowers over there would have another loan option and get the cash they need and the lenders would make a decent profit meaning that it really would be a win win for everyone.
Speak soon.
Paula Harrison
Managing Director
anytypeofloan.co.uk
