Unsecured Loan Company - A Warning.

Scrimpingsmith

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.

onlypaddy

this post could have been condensed down to 3 lines to tell us the same story we've heard many times on here unfortunately...

Got greedy
Went to loan broker
[TEXT DELETED BY FORUM TEAM]

Do everything in writing to try and get your money back....good luck

roh999

i fell asleep half way through reading it.:beer:

KingElvis

These companies must make a mint out of these poor people.

Hax

Scrimpingsmith wrote: »

The girl came back on the line and advised me I had been accepted

Accepted or provisionally accepted?

Scrimpingsmith wrote: »

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.

This seems unlikely as you said:

Scrimpingsmith wrote: »

I "Applied" online

And using Google to search for "Unsecured Loans Company" - the top hit takes me to their website which has a link to their Ts & Cs at the top of the page, including the bit about the refund and keeping the £5 fee:

Fees

11. We charge a fee for providing our services. We specify the fee as part of our communications with You. If We provide You with no services other than acting as a loan or finance broker and You do not effect a loan or debt related solution offered by a lender or finance related company within the 10 weeks We act for You, We will refund the fee less the £5 brokerage fee provided for by the Consumer Credit Act 1974. Refunds must be requested in writing to avoid refunds being sent to a wrong or previous address. To facilitate Us processing payments and post dated payments You authorise Us to retain your charge, credit or debit card details.

Click for Ts & Cs

Scrimpingsmith wrote: »

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.

So, when you thought that you were guaranteed a loan, you were happy to pay the brokerage fee. But, when the first company refuses your application, you are then unhappy about the brokerage fee as you now realise that your application is not guaranteed to be successful.

I am still gobsmacked that people expect to be guaranteed for a loan that is brokered for them. All the broker does is put your name forward to a list of companies that they deal with and who they think are most likely to accept you. They have a loose list of the acceptance critereia for the different companies they use and they will try to match you with the one that seems to fit best based on the information you provide. The chosen company has to do all of it's own checks and scoring first.

This is just another case of someone blindly handing over their details in the desperate hope of getting more credit, without actually understanding why they are handing their details over.

callistris

Scrimpingsmith wrote: »

asked for a fee of £49.95


Scrimpingsmith.

Alarm bells should have rang when they asked for this;)

Apples2

I must admit, I almost gave up reading after seeing "discharged bankrupt", and then this

An extra £1500 now would have made all the difference

Do people never learn??

diane53

[TEXT DELETED BY FORUM TEAM] unsecured loan company
told me they could help took the fee of my card and still no loan
I am fighting to get my feen back but dont hold out much hope

poppasmurf_bewdley

diane53 wrote: »

[TEXT DELETED BY FORUM TEAM] unsecured loan company
told me they could help took the fee of my card and still no loan
I am fighting to get my feen back but dont hold out much hope

Respond properly (in writing and recorded delivery), threaten to take them to FSA and OFT, and you will get your money back. To use the words of the old Tories when John Minor was in power (God help us!) - Don't let the bas***ds get you down!