Loanfinder- what you need to know

Mystery_Guest

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Complaints against Loanfinder UK Limited and their response included the following:

1) Complaint:

Fees are taken out of customers' accounts without authorisation, using debit cards, the details of which are purportedly taken for identification or credit check purposes only.

Loanfinder response:

We do not conduct identity or credit checks when taking details from a customer and no claim is made in any telephone script or within any website content which would suggest otherwise. Unlike with most loan brokers, our customers don’t pay their service fee upfront before they’ve applied for their loan. Instead customers pay their fee between 1 and 6 weeks after they’ve made an application at a time of the customer’s choosing. Whether a customer has applied online or over the telephone the date and method of payment is chosen by the customer and then confirmed after the payment has been set.

2) Complaint:

Payment of fees is taken though loans are offered for an amount, which is below the amount needed and requested by customers.

Loanfinder response:

If a customer is not happy with the offer they’ve received from the lender they’ve been matched with all they need to do is simply contact us and we will find an alternative lender, update any new application information and if the customer is not satisfied with the service they’ve received they can request that the application is closed and that a refund is issued. We operate a completely independent service. We work for our customers, not the lender which we recommend to them. We aim to find our customers the best amount that’s available to them, at the best rate and with the fastest turn around time from application to payout. In conducting our search our primary focus is to match our customers with the best solution available for them, even if we don’t have a relationship with that lender. Where we don’t have a direct relationship with a particular lender, we won’t necessarily receive feedback about the amount that the lender has offered to our customers.

3) Complaint:

Payment is taken though the customer has cancelled the request for a loan.

Loanfinder response:

Again, we won’t always receive feedback from a lender if a customer has requested to cancel their application. If a customer experiences difficulties in applying to their lender, changes their mind about applying for a loan or wishes to cancel their application for any reason, all they need to do is contact us directly and the application will be cancelled.

4) Complaint:

Loanfinder mislead customers by saying that a fee will only be taken if a suitable loan is found for the customer and paid up.

Loanfinder response:

When a customer makes an application they choose the date on which the service fee will be paid. The fee is set up between 1 and 6 weeks after the initial application is made. This means that the customer is in complete control – if they’re not happy with the service by the time it comes to pay the service fee the customer can simply contact us and rearrange the date on which the fee is taken or cancel the service completely. We’re looking to match our customers with the best lender that’s out there for them, even if we don’t have a relationship with that lender. Because of this we won’t necessarily receive feedback from lenders on when a loan is paid out and so there is unfortunately no way that it would be possible for us to charge the service fee on pay out of the loan. If an application is taking longer than anticipated and it looks like a customer will not receive their loan the customer can rearrange the date on which the service fee is paid at any time by simply calling us.

5) Complaint:

Loanfinder process an application fee knowing that they will not be able find customers a suitable lender.

Loanfinder response:

We will only take applications from people that we’re certain we can help. The information customers provide is carefully analysed during the application, whether the application is made over the phone or online. If there are no products on our panel that would suit a customer or the customer is insolvent, the application won’t be accepted and the customer will never get to the stage of the application where they are asked to schedule the payment of the service fee.

6) Complaint:

Companies within the Richmond Group mislead customers by suggesting that they can guarantee a loan for a search fee of £49.

Loanfinder response:

We are the only part of the Richmond Group that offers a loan finding service. We are not able to guarantee a loan as it's not us paying out the money and we never do. We have strict internal procedures which forbid any call centre agent from giving any implication that the service is guaranteed, the implication that “loans are guaranteed” does not appear anywhere on our website or in any of our marketing material. The Loanfinder service is as the name suggests – to find a loan for our customers. Until we have conducted the search to match the customer with the best available lender, we wouldn’t be able to give any indication of the terms, duration, amount or rate at which money will be lent to the customer.

7) Complaint:

The Richmond Group, of which Loanfinder is a member, offer broker, lender and DMP services, each of which charge fees and each of which refer customers to each other.

Loanfinder response:

We are a completely independent broker, we will find the best solution out there for our customers whether or not it is a part of our group of companies. If a customer is recommended a company that is a part of our group, it will be because they are the best option for our customer’s personal circumstances. We always disclose if we have a relationship with the company that we’re recommending before a customer decides to make contact with that company.

8) Complaint:

Loanfinder offer customers loans from companies which have already rejected their application or which are unsuitable because no guarantor is able to guarantee the customer’s loan application.

Loanfinder response:

As part of a customer’s application they are asked who they currently have credit with and the details of any creditors who have turned them down before they applied. It is made clear that it is vital that the customer answers this information accurately so that we can find the right loan for the customer first time and as quickly as possible. If a customer indicates that they have outstanding credit with a particular lender or have been refused credit with a provider, these companies are excluded from the search. If any customer receives a recommendation for a lender that they don’t want to use for any reason, they can either decline it on their online account page or just call us and ask one of our telephone agents to do it for them. The customer will then be matched with the next best lender for their criteria. Guarantor products are becoming more and more popular in the UK as they offer lenders an amount of security when lending in an unsecured manner. Several guarantor products are offered to our customers when they are the best product available for them. If the customer does not like the lender that they’ve been matched with for any reason all they need to do is simply contact us and we will find an alternative lender for them.

9) Complaint:

Loanfinder operates a scam.

Loanfinder response:

We absolutely do not operate a scam and it is slanderous and libellous to suggest otherwise. We are part of one of the largest and most consumer friendly finance groups in the UK who have received many nationally recognised awards for the quality of our companies. We hold a consumer credit license that was issued and recently renewed by the Office of Fair Trading, who have complete knowledge of our business model. We have a no quibble refund policy. If a customer is not completely satisfied with the service they’ve received simply write to us and request a refund. Queries of this nature will usually be dealt with within 5 working days.

10) Complaint:

It is extremely difficult to obtain a refund from Loanfinder. Complaints are not dealt with over the phone.

Loanfinder response:

We have a no quibble refund policy. If a customer is not completely satisfied with the service they’ve received simply write to us and request a refund. Queries of this nature will usually be dealt with within 5 working days. Complaints and refund requests will be dealt with by a dedicated compliance team. This team does not work on the phone and complaints or refund requests should be forwarded in writing.