fraudulent loan applications

gglovesbutton

Hi,

my partner was duped into a makeover/photo shoot at a studio in london. On the face of it this seemed like a reputable company with studios all over the country.

At the end of the shoot a 'package ' was agreed and the sales representative offered a payment installment option. She outlined a deposit figure and also a monthly repayment figure. Once this was agreed the deposit was taken from my partners debit card and the representative then proceeded to apply for personal loans in my partners name. THIS WAS NOT AGREED!

Are companies allowed to offer payment options and then apply for loans in customer names without consent?
If it is legal, is it ethical?
If companies offer installment plans should they not have a credit agency that they use?:mad::mad:

I am in the process of drafting a complaint to the customer services department and woudl like as much ammunition as possible as i have read that the company has a far from helpful approach to customer service/care!

Thanks.

GGLOVESBUTTON

ILW

If a deposit and then monthly payment was agreed, what could this be apart from a loan?

What forms were signed?

poppasmurf_bewdley

Doesn't any company offering credit of any kind have to be registered with either OFT or FSO? If they're not registered, they are committing an offence and the agreement will be null and void.

ILW

I would assume they have a consumer credit license.

poppasmurf_bewdley

ILW wrote: »

I would assume they have a consumer credit license.

That's what I meant.:)

gglovesbutton

No forms were signed as the application was completed online using the details obtained under the pretence it was an installment plan.

When i get my yearly car insurance i pay in monthly installments and receive a credit agreement to sign. Does my insurance company not have an external credit company to offer this service? Surely they dont apply for a bank loan to give me this installment option!This is what my partner was under the illusion she was signing up for. I have since read reviews on the company and they are far from positive. I would like to be able to quote some form of terms and conditions from loan applications to them because surely they cant apply for a loan for me without agreement.

ILW

Unless you are applying directly to a bank, all retailers will use external finance companies, which appears to be exactly what has happened. I may be missing something but cannot see the issue?

lawrie28

If they have done the loan on a computer n front of you, then they woudl probably accept that is permission.

Which company is the loan with? If the loan has been signed off the premises then distance selling regs may apply, but anything that can be classed as ON the premises gives you even less leeway.

Insurance co's offer the finance and fund it themselves/through another company. But they still charge interest, but because it is insurance and they have all your details anyway they will probably not do a search but the interest rate reflects this. It is still a loan though.