Unsecured Loan Company - A Warning.

I have recently been looking at changing the car I drive for a more "Utility" type vehicle, such as a pick-up.

I am also a discharged Bankrupt but am now rebuilding my credit score and have a credit card / bank account etc.

Looking at Auto-Trader on the internet for a new car and there was an advert for unsecured loans. An extra £1500 now would have made all the difference to the vehicle I would end up with and cushion the savings until my current vehicle sold - helpful with Christmas here.

I "Applied" online and received a number of calls from the company which I could not initially take. When I did speak to them they took down details and asked me to hold - I assumed as they ran a credit check etc. The girl came back on the line and advised me I had been accepted for the loan over 12 months and the repayment amounts. She said the cash could would be in my account within 4 days and asked for a fee of £49.95. I questioned this and was informed that the fee was a brokerage fee - they acting as brokers. That was fine and the fee paid by CC there and then.

I then received a plethora of calls from other "loan" companies offering me finance. I turn them all away.

I am then informed that the initial company, Valour Finance, have declined my application and that the Unsecured Loan Company now wish to view my credit file so they can assist better place the loan.

I said no.

They have since bombarded my with requests to view my file and I declined each time, in the end asking for a refund of the fee (well within 14 days). I am constantly informed that the refunds policy is explained in the terms and conditions.

The thing is this -

1. I was not given access to the website before I paid the fee, therefore no terms and conditions could be incorporated into the agreement when I paid the fee.

2. Their terms state that if I request another service, such as a credit file check, I forfeit my right to a refund - this explains why they are so keen to get me to agree to them seeing my file (Pointless as I know what it says already).

3. They are refusing to issue a refund and if they do, are attempting to withhold a £5 admin fee.

My advice to anyone would be to avoid using a broker and paying any sort of fee to obtain a loan that can be obtained yourself directly. It is obvious the Unsecured Loan Company cannot easily place my loan request and so are trying to secure their fee by any means at their disposal.

I've learnt my lesson. I hope this helps others avoid the same mistake.

(I am still fighting for a refund as I type).

Scrimpingsmith.