Pay Day Loan Scam

rorysdad

YorkshireBoy wrote: »

What do the T&Cs say about further payments?


Answer: They don't say anything, because there are no further payments to be charged!


You write for your refund, get it...and to put your mind at ease, if any payments (whether from this company or not) are processed, you simply tell your bank they're unauthorised and they'll reimburse you straight away. But there won't be any.

'Won't be any'? Someone has posted on a different thread on here the following - so how can you know that there won't be others?!!

'i have lost over £300 to broker companies who took money from my bank without my knowledge, these companies mymoneyfinder.co.uk/com, moneygaga, loanmarketing.co.uk and mymoneyhelper.co.uk have taken fees ranging from 69.99 to 34.99. i have now taken on a company to help me sort my fiancial issues and they have sent me a letter to send to these companies, but i cannot find any address for these companies, can anyone please help me.

When i contacted my bank, they told me i had upto another 70 companies waiting to take money from my account with pending transactions and there is nothing they can do to stop these..'

[Deleted User]

I did some research and found some information on Very Merry Loans (it's owned by a 20 year old, he named it after himself) and it's just a middle man that uses an affiliate program ran by a company called "Money Gaga", they pay for every loan that eventually goes through.

Here's what happens when you use the Very Merry site:

1. You select the amount of money you'd like to borrow

2. You're presented with the input form for your personal details

3. The system sends your personal details to the Moneygaga service, the service responds with a link to a randomly selected "Payday lender" from their books and you are then forwarded to that lenders website

4. The lenders website asks you to input your credit card details (with your personal details already provided from the previous form submission) for the loan to be processed.

5. The loan is processed... and the original site (Very Merry) gets paid a commission on that loan

The problem that the OP experienced is he was not forwarded to a Payday lender... he was forwarded to a "broker" that charges to find him a loan. He entered his payment information into this brokers website and he was charged. A middleman forwarded him to another middleman, instead of a lender, and that middleman charged his card.

Personally I would say that the OP is negligent for entering his card details into a site he was clearly not originally using, but whatever, my opinion doesn't matter.

rorysdad

YorkshireBoy wrote: »

Really? I thought I'd just done exactly what you'd done...applied on merryloans, who then immediately redirected me to 1loan. The plot thickens!You've totally missed my point!

I put in ficticious details on the merryloan site (because an earlier poster said they daren't proceed), including saying MY address was Buckingham Palace and that I earned £45m per annum.

They said I'd been accepted for a loan and passed me through to 1loan who simply wanted my card number.

Sorry for confusing you!

Ha ha! I am calling it a day on this. Reading all of the opinions posted it is clear that although I MAY have been negligent in not reading terms and conditions that may/may not have been presented to me, the fact is that the whole process appears to be geared up to misleading only the very shrewdest and astute of people, and I am obviously not one of those people.

To be fair and upfront the company should have made it clear:

1. Why I was being re-directed to their site from another site, in a situation where the former site had informed me that I had been successful in getting a loan from them;
2. That in fact 1.above was not the situation. I had not been granted a loan and giving my Bank/card details was not so that the loan could be deposited in my Bank, but was for the broker to charge me £40 to refer my details to other potential lenders who may/may not grant me a loan.

In the final analysis, how many people would knowingly and willingly pay £40 to someone who is not guaranteeing to find them a loan, which said loan could be for as little as £50?

YorkshireBoy

rorysdad wrote: »

I had not been granted a loan and giving my Bank/card details was not so that the loan could be deposited in my Bank, but was for the broker to charge me £40 to refer my details to other potential lenders who may/may not grant me a loan.

Just for your future reference, bank details (ie sort code and account number) are used to deposit money INTO your account (and also to set up Direct Debits), whereas a request for card details means money is only ever going to move one way...OUT OF your account.

rorysdad

citricsquid wrote: »

I did some research and found some information on Very Merry Loans (it's owned by a 20 year old, he named it after himself) and it's just a middle man that uses an affiliate program ran by a company called "Money Gaga", they pay for every loan that eventually goes through.

Here's what happens when you use the Very Merry site:

1. You select the amount of money you'd like to borrow

2. You're presented with the input form for your personal details

3. The system sends your personal details to the Moneygaga service, the service responds with a link to a randomly selected "Payday lender" from their books and you are then forwarded to that lenders website

4. The lenders website asks you to input your credit card details (with your personal details already provided from the previous form submission) for the loan to be processed.

5. The loan is processed... and the original site (Very Merry) gets paid a commission on that loan

The problem that the OP experienced is he was not forwarded to a Payday lender... he was forwarded to a "broker" that charges to find him a loan. He entered his payment information into this brokers website and he was charged. A middleman forwarded him to another middleman, instead of a lender, and that middleman charged his card.

Personally I would say that the OP is negligent for entering his card details into a site he was clearly not originally using, but whatever, my opinion doesn't matter.

4. The lenders website asks you to input your credit card details (with your personal details already provided from the previous form submission) for the loan to be processed.

And that is what I believed was happening - but it was not. Why be passed to a broker to find a loan for you, when as per 4 above you have been told that you have a loan - and there has been NO mention of any fees?

rorysdad

YorkshireBoy wrote: »

Just for your future reference, bank details (ie sort code and account number) are used to deposit money INTO your account (and also to set up Direct Debits), whereas a request for card details means money is only ever going to move one way...OUT OF your account.

That may be so. But how many sites ask for card details for purposes such as 'verifying your identity'? Lots.

matttye

Very Merry Loans says nothing about being a broker on the main page.

Nothing about being a broker on the application page.

Nothing about being a broker on the "How it works" page.

It only says it is a broker in the terms and conditions.

If you didn't look at the terms and conditions it would be fair to say that Very Merry Loans appears to be a lender.

I for one think it's very shady that you can go from the home page all the way through the application process without even being told that you're actually dealing with a loan broker and not a lender.

The "How it works" page does not even say anything about passing your details onto lenders, for god's sake.

The OP is a little negligent here but this website is very shady as well. This sort of thing should not be legal.

YorkshireBoy

citricsquid wrote: »

4. The lenders website asks you to input your credit card details (with your personal details already provided from the previous form submission) for the loan to be processed.

That's not correct in this case.

There were two brokers involved, verymerry and 1loan

The first broker didn't charge a fee, but the second one did.

From the verymerry T&Cs...

Very Merry Loans is not a lender and therefore will not provide finance directly to customers; we are a finance broker, we will find lenders and providers of financial services for you.

And from the 1loan T&Cs...

We charge a fee up to £39.99 for providing the service of acting as a finance broker

So, two brokers, one fee, and still the possibility of no loan at the end of it!

matttye

YorkshireBoy wrote: »

That's not correct in this case.

There were two brokers involved, verymerry and 1loan

The first broker didn't charge a fee, but the second one did.

From the verymerry T&Cs...And from the 1loan T&Cs...So, two brokers, one fee, and still the possibility of no loan at the end of it!

1loan is more clear about being a broker. It has a page entitled "Our lenders" and references being a broker on other parts of the site.

Very Merry Loans says things such as :

"Very Merry Loans gives you smart little loans up to £1,000 for the unexpected. Our loans only go for 7 - 45 days, so you can't get stuck in long-term debt."

"Our loans" makes it sound like they are actually giving the loan themselves.

It doesn't mention anywhere that I can see that it is a broker other than in the terms and conditions.

[Deleted User]

YorkshireBoy wrote: »

There were two brokers involved, verymerry and 1loan

Very Merry doesn't take any money, they don't have the facilities to do so, all they do is push the applicant to an actual Payday lender or an actual broker that exists as a business, which is done through the Money Gaga affiliate program.

4 is what is supposed to happen (the affiliate program directs the applicant to a Payday lender) but what happened is he was directed to a proper broker (that charges a fee and isn't just some website ran by some kid using some affiliate program, it's an actual business).

Sort of like Moneysupermarket.com vs. a mortgage broker, although I don't know if Moneysupermarket.com is a broker or not so maybe it does count.