Thinking of starting up a loan business

BugsyBrowne

iolanthe07 wrote: »

People resorting to payday lenders as OUR banks won't lend

The bank do lend, but they prefer to lend to people with a track record of paying back in full and on time. You can't blame them, really.

Yes your right a track record,but what about the people who have a good track record who have never missed a payment never been late with a payment,but unfortunately as fuel prices and day to day living prices have upped these people have had to resort in using their credit cards.

And when these people go to the bank and ask to borrow then the bank say no as you have Maxed out your credit cards.
Banks are not their to help you they are their to make money.

The best one I like is the halifax advert you pay in 1.5k every month and we will give you £5,do you actually know how many millions halifax are making from doing this.

ILW

star-fire wrote: »

Yes your right a track record,but what about the people who have a good track record who have never missed a payment never been late with a payment,but unfortunately as fuel prices and day to day living prices have upped these people have had to resort in using their credit cards.

And when these people go to the bank and ask to borrow then the bank say no as you have Maxed out your credit cards.
Banks are not their to help you they are their to make money.

The best one I like is the halifax advert you pay in 1.5k every month and we will give you £5,do you actually know how many millions halifax are making from doing this.

If you are using credit just to pay day by day expenses, then you need to address your lifestyle

BugsyBrowne

ILW wrote: »

If you are using credit just to pay day by day expenses, then you need to address your lifestyle

Silly comment ILW,you say your bank are happy to lend you money as you've payed them back in the past,well maybe you need to change your lifestyle if your taking out loans with your bank.
Same thing as people taking out credit cards how ever you label it your still borrowing.

27col

People who have overdrafts and large credit card bills seem to think that it is their money that they are spending. If you cannot manage on the income you have got, then how can you expect to manage on what's left of the same income after paying a load of interest.

Apples2

crazyguy wrote: »

Well said chrissie,

You will find a lot of hostile people on here who think its fine for these company's to pratice in this way.

I think it is a total disgrace and I agree with everything you have said, shame there are not more people like you around.

I cannot see how these company's can justify a fee of between £20-£80.00 for doing nothing for you barring ripping you off !

I would completely challenge that statement, I don't know of ANYONE who defends these companies and considers their activities above board.

Scammers have been around since the dawn of time ripping people off, are they any different from Ebay sellers flogging fake goods or empty xbox boxes?

If you understand who you are doing business with, you will already know the likelyhood of a successful outcome.

The reality with Brokers is that people who are low risk, simply do not require their services...ever. Low risk applicants will be accepted anywhere.

The only people who contact brokers have been refused loans from the mainstream lenders, or who already know they will be refused.

People fall for the empty promise of a "Guaranteed loan" in exactly the same way someone falls for a ridiculously low priced Xbox box on Ebay.

Even an honest broker, will struggle to locate a loan from these High Risk applicants. The ONLY companies who would ever lend are those who require guarantors, secured loans or massive APR, low value loans.

Whilst it is easy to point the finger at FOS, TS, FO etc. you HAVE to accept that as an adult, you should be looking out for your own interests to avoid being scammed.

The Broker scam is just another variant of people being blind to the obvious scam in front of them...

"How can this broker solve my problem when everyone else is saying no?"

The alarm bells should be ringing, unfortunately they never seem to ring loud enough for far too many people.

It is a sad World indeed, but one you cannot expect others to take all the blame for your mistakes.

There are scammers all around us, high street, emails, internet, phonecalls to name but a few.. Let your guard down at your peril.

crazyguy

Apples2,

Thats as maybe, we all know there are scammers out there and they are normaly email, and auction websites so the vast majority of these scammers are in the most likely case from some far flung country preying of either the needy or vunerable person, this makes for a difficult challenge to find and convict the said culprit.

Loan Brokers on the other hand are in the most cases based in the UK, they then charge a fee of between £20-£80.00 for a service as they call it, in my view and many others it is a way of stealing your money as it is not normaly discussed as a fee and again in most cases the person is asked for a debit card as proof of ID, now if you are in genuine need of a loan you would normaly give details over if you thought you would get the said loan and believed that you were not paying a fee as told by the adviser on the phone, granted if it was a website sign up and you fail to read the t&c's then the onus clearly falls on you for not checking properly.

So the company's in the UK that get away with this time and time again and normaly get a slapped wrist and told to change their ways and a miniscule fine carry on preying on the needy individual, this is utterly discusting and in my view and probably a lot of others should be closed down and banned from running any other company ever again.

It is after all a crime to rob another person, just because you call yourself a loan broker does not retract from the fact that you are still a thief.

Apples2

crazyguy wrote: »

So the company's in the UK that get away with this time and time again and normaly get a slapped wrist and told to change their ways and a miniscule fine carry on preying on the needy individual, this is utterly discusting and in my view and probably a lot of others should be closed down and banned from running any company ever again.

I agree with your comments but we see time and time again when these companies do get shut down through credit licenses revoked, they just spring up again under a different name the following day and carry on as before.

Until there is a crackdown preventing the scammers themselves operating as opposed to the company "trading", this will continue.... and that is not likely to happen any time soon so we are stuck with it.

Should we wait until the Government do something about it or should we focus our efforts on educating people enough to prevent them falling for this nonsense in the first place?

I know what would be quicker!!

The broker scam is very easy to spot, even if you can't, 30 seconds to make a post on an Internet Forum will yield the results and expose the scam for what it is, there really is no need to make such a rash decision to some stranger on the phone.

ILW

star-fire wrote: »

Silly comment ILW,you say your bank are happy to lend you money as you've payed them back in the past,well maybe you need to change your lifestyle if your taking out loans with your bank.
Same thing as people taking out credit cards how ever you label it your still borrowing.

I have only ever taken out loans for specific purchases. Your post referred to using credit to cover the increased cost of fuel and rising living expenses. That is a road to disaster.

armour

Starfire said
"The best one I like is the halifax advert you pay in 1.5k every month and we will give you £5,do you actually know how many millions halifax are making from doing this."
I take it you're talking about the "reward" account. where they are making money from charging £1 a day to overdrawn accounts? If so then why have such an account? you have to apply for it after all.

PNPSUKNET

£60 a year clear profit per account