Loan Company's Application Fee

clareandlee

I was wondering if anyone could offer some help here please.

Around 3 months ago when both me and my partner were in need of a loan, we applied with a company - Fresh Finance (had to use one of these bad credit firms as neither of us have good credit) who approved us in principle and told us to pay a £49 application fee which would be refunded if they could not help us. We paid this by cheque but then received a letter from them a few days later saying that they could not give us the loan after all. We have called them a few times asking for the £49 refund but each time they tell us that we cannot get the refund until 6 months as passed. I do not understand this, as surely they are keeping our money when they shouldn't be. They were quick enough taking the money so why would it take so long to send it back? Does anyone know if this is normal activity for such companies?

Thanks Clare

jonesMUFCforever

Not it is not.
Send them a letter stating that if you do not receive your money back within 7 days that you will sue them online (cost £30 which they will have to pay when you win)

Astaroth

Erm... wouldnt be as hasty as ejones999 (as usual) - you need to read the contract with the broker (Fresh Finance's website only says they do IVAs and debt management, the loan link takes you to a list of loan brokers for people with poor credit) as if this states that there is a 6 month period of them trying to get you a loan then you have no legal right to the refund before this time as you have now passed the cooling off period.

If there is no clause in there on time scales then certainly go ahead and send them a 7 day letter - if there is a timescale clause then you will be simply throwing away £30.