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Flm Quick
I just don’t get it...
A couple of weeks ago I’ve received an e-mail from “FLM Quick Loans” . They are one of these loan companies which are prepared to borrow you up to 500 GBP, provided a friend or someone else will act as a “guarantor” for you. First they sent me an e-mail saying they are prepared to lend 50 GBP which I ignored as I had not requested it in the first place. Then they upped their - i.e. my - credit limit, offering 100 GBP ! They keep sending regular text messages and e-mails, asking me “Did you not want your 100 quid ?” or to “Sign your agreement now” ! I am ignoring them and can’t stop grinning when reading their stupid e-mails, I know it sounds weird but things like that make me laugh
Last week I gave it a go – and read through the agreement which they had attached and which I was required to sign. And there I found something weird which I found far from amusing, in fact, I find that really strange business practice: Never mind that I have never requested a loan from them, I had never named anybody as a guarantor and yet the agreement states:
“Guarantee
The guarantor "Guarantor" you have provided is to give us a guarantee and indemnity which will secure this agreement. “
I wonder what FLM are up to ? Is one of their employees undermining their own policy ? Or is it their policy to claim to provide “Guarantor Loans”and then to lend money anyway when people do not provide such a guarantor (again: I had not even requested such a loan !)
The other thing that baffled me was that their terms and conditions about what amount the debtor has to pay back ?
The agreement reads:
“We are required to provide you with an example of the total amount you would pay if you were to have a credit limit of and borrow £100.00 and repay that amount, together with interest, over the period of one year by 12 equal monthly instalments, assuming there was no change to the interest rate during that period. On these assumptions the total amount payable would be £172.41 and the annual percentage rate of charge would be 199%APR. The actual amount you will pay under this agreement will depend on how long you take to repay the Initial transaction, the amounts you draw down under this agreement in future and how long you take to repay those drawdown's.”
“...assuming there was no change to the interest rate during that period” !?!
“on these assumptions the total amount payable would be 172.41”
Now the way I understand these two sentences the normal amount to repay would be 172.41 GBP when borrowing 100 GBP but they have the right to change that agreement right away ? That might be common practice to change terms & conditions but am I the only one thinking that their approach is so weird that they are highly likely to alter this agreement anyway ? I mean if that’s FLM's common practice then surely their licences should be taken away :mad: ?
A couple of weeks ago I’ve received an e-mail from “FLM Quick Loans” . They are one of these loan companies which are prepared to borrow you up to 500 GBP, provided a friend or someone else will act as a “guarantor” for you. First they sent me an e-mail saying they are prepared to lend 50 GBP which I ignored as I had not requested it in the first place. Then they upped their - i.e. my - credit limit, offering 100 GBP ! They keep sending regular text messages and e-mails, asking me “Did you not want your 100 quid ?” or to “Sign your agreement now” ! I am ignoring them and can’t stop grinning when reading their stupid e-mails, I know it sounds weird but things like that make me laugh
Last week I gave it a go – and read through the agreement which they had attached and which I was required to sign. And there I found something weird which I found far from amusing, in fact, I find that really strange business practice: Never mind that I have never requested a loan from them, I had never named anybody as a guarantor and yet the agreement states:
“Guarantee
The guarantor "Guarantor" you have provided is to give us a guarantee and indemnity which will secure this agreement. “
I wonder what FLM are up to ? Is one of their employees undermining their own policy ? Or is it their policy to claim to provide “Guarantor Loans”and then to lend money anyway when people do not provide such a guarantor (again: I had not even requested such a loan !)
The other thing that baffled me was that their terms and conditions about what amount the debtor has to pay back ?
The agreement reads:
“We are required to provide you with an example of the total amount you would pay if you were to have a credit limit of and borrow £100.00 and repay that amount, together with interest, over the period of one year by 12 equal monthly instalments, assuming there was no change to the interest rate during that period. On these assumptions the total amount payable would be £172.41 and the annual percentage rate of charge would be 199%APR. The actual amount you will pay under this agreement will depend on how long you take to repay the Initial transaction, the amounts you draw down under this agreement in future and how long you take to repay those drawdown's.”
“...assuming there was no change to the interest rate during that period” !?!
“on these assumptions the total amount payable would be 172.41”
Now the way I understand these two sentences the normal amount to repay would be 172.41 GBP when borrowing 100 GBP but they have the right to change that agreement right away ? That might be common practice to change terms & conditions but am I the only one thinking that their approach is so weird that they are highly likely to alter this agreement anyway ? I mean if that’s FLM's common practice then surely their licences should be taken away :mad: ?
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Comments
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Totally agree! No one should ever use FLM. There has been quite alot of posts on here regarding them recently.:smileyheaMarried on 20/07/2012! :smileyhea
:DBought my new car 11/08/12:D:cool: Save £12k In 2013 Num 009! £5502/£5000 :cool:
Save £12k in 2014 Num 22! £2131/£3000
Emergency Fund £00 -
If you're down to sharks like FLM you really need to look at your spending, income and lifestyle.
I would avoid like a dose."We want the finest wines available to humanity, we want them here, and we want them now!"0 -
What you've received is an advert from FLM inviting you to apply for a loan, so their T&Cs mean nothing to you at the moment. Presumably, if you did apply for a loan with them you would have to supply a guarantor.
And, as for your other point, most loans come with variable APR.0 -
I'm still at an absolute loss as to why anyone would borrow £100 over 12 months. Its simply preying on the financially inept.
Although I would say that repaying £172 on a loan of £100 over a year doesn't sound to bad at all. If you take into account that most people will default anyway due to their lack of monetary understanding that seems about the right level of interest to me as only mugs will go for it.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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