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Upfront fees for arranging loans - don't pay it

There seems to a lot of dodgy loan brokerage companies around calling people up telling them that their loan applications have been approved in principle and if they pay 49.95 they will finalise the loan.
When you get such a call, or come across any loan brokers charging upfront fees - smell the rat.....question what the fee is for, demand to see it in the loan agreement, don't pay it!

Too often, these loans DON'T get finalised and the 'broker' in question often dodge any responsibility despite their original call "congratulations, you loan application has been approved!"
It is against the law, against Consumer Credit Act 1972, for a loan broker to charge upfront fees which more than 5 pounds.

Comments

  • Wutang_2
    Wutang_2 Posts: 2,513 Forumite
    Breaking news alert
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Wutang wrote: »
    Breaking news alert
    :rotfl::T:rotfl::T:rotfl::T:rotfl:
  • Meepster
    Meepster Posts: 5,955 Forumite
    I had to take out a loan to pay for all the loan arrangement fees I had to pay... ;)
    If it looks like a duck, and quacks like a duck, we have at least to consider the possibility that we have a small aquatic bird of the family anatidae on our hands

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