Can Loan Companies Legally Do This?

giggles291066

I would like to know where we stand legally on this please?

A family member applied for a 15K unsecured loan with one company who said they couldn't help him. He then started getting a lot of phone calls, letters and texts etc from others who claimed they could. In the last 2 weeks he received a phonecall from a company who said his details had been passed onto them and they felt they could help. He gave them details they required over the phone and a day later he received another call from them saying he had been accepted and that the money would be into his bank account by the Friday. However there was an administration fee of £49.50 to pay to release the money. His elderly mother kindly allowed him to pay on her debit card from her pension money.

He then received a letter from them saying he had been accepted by them and they would like to arrange a payout within the next 5 days.

When Friday arrived no money went into his account at close of business so he called them and was told his best bet was to go to the post office and apply for a loan with them. When he asked what had happened to the money that was meant to be transferred to his account he was just told that the £49.50 was a referral fee for them to recommend someone to him he might be able to apply to.

Furthermore they have sent him an application form today to apply for a £3000 loan with themselves!!!!

Where does he stand legally on this? Are companies allowed to make such ludicrous charges and then do nothing and give you false and misleading information (i.e they said he had been accepted and money would be in his bank on Friday and then it was not).

Where would he stand and how would he go about trying to get his money back (the £49.50) that they appear to have swindled him out of. His elderly mother really cant afford to lose this mother and only agreed to pay on the understanding he would be able to give it her back 5 days later when the money came through.

Advantage Loans - They really do seem to be taking advantage of vulnerable clients.

petermb_2

Sadly yes they do seem to be able to do this sort of thing, legally. I would advise that your family member contacts a reputable financial adviser or loan broker. I am sure someone will be able to assist.

regards

Peter

jonesMUFCforever

So the 'family member' has no visa debit/credit card or other visible funds to pay back his mother the £50 fee - how on earth was he going to manage the repayments on a £15000 loan!?
Sorry but from what is written this is just a pipedream - it will not happen.
He has lost the £50 fee but shoud make sure that he repays his mother ASAP.

Xbigman

If he was told that he had been accepted for a loan and that the money would be in the bank friday then what they did was illegal. But I doubt he can prove it and his money is lost.

But I bet they were a bit more clever than that. These companies prey on the desperate and you will find they will not commit themselves directly. If they say something like 'Mr X, if you pay this fee now the money could be released and in your account by friday' it sounds like you have been accepted, but you have not.

He has lost £50, forget it and move on.
Regards



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