Pay Day Loan Scam

rorysdad

As Fiddler says - 'shady' and as far as I am concerned I have been very misled.

Having just re-visited the Merryloans site it has logged me in to see my 'History' which shows that I applied for a loan this morning - but does not say who with (I thought it was them) and it lists 'their lenders' as Wonga, Quick Quid and PayDay UK'.

The site says 'We charge no aditional or upfront fees, our service is completely free to use.'

Also, ' If I have a loan with another provider, can I take out a loan with VeryMerryLoans.com?'

RD

kittieworld

I feel for you rorysdad because like my mum you were mislead by this site....and I totally understand you.
These companies mislead people every day some of the sites do not mention anything about being a broker! they mention payday loan not we will pass your detail onto a 100 payday companies for commission and also charge you! as well as this I am sure like my mum you are getting a 100 calls a day by loan companies now? which these brokers pass ur details onto. Some of these companies won't even give you a loan they just want fees its a circle of scam in which some people do not understand. I am pretty sure most people on this site has fallen for one thing or another at some point in their life or maybe they are just perfect so they have the right to judge others so quick.
ok so try some of these things.......

Call bank ask to speak with fraud team give them details
Ask for new card details do this tonight
Ask to make sure no more payments are pending
depending on which bank ur with my mum is with nationwide and they issued a dispute as other costumers have made complaints they basically never released the money to these two companies 1loan and lady gaga

DCFC79

kittieworld wrote: »

I am pretty sure most people on this site has fallen for one thing or another at some point in their life or maybe they are just perfect so they have the right to judge others so quick.

Bit of a sweeping statement since you dont know any of us personally, im not perfect but I wouldnt give my card/bank account details away nor in the hpe of getting a loan that wont happen as I would go to my own bank or a another bank.

kittieworld wrote: »

ok so try some of these things.......

Call bank ask to speak with fraud team give them details
Ask for new card details do this tonight
Ask to make sure no more payments are pending
depending on which bank ur with my mum is with nationwide and they issued a dispute as other costumers have made complaints they basically never released the money to these two companies 1loan and lady gaga

A new card might not even help (the bank would answer this for the OP), its been mentioned on the forums that a new card wont always stop money being debited.

kittieworld

1loan has a number on there site which you will never ever get though to someone

kittieworld

rorysdad wrote: »

As Fiddler says - 'shady' and as far as I am concerned I have been very misled.

Having just re-visited the Merryloans site it has logged me in to see my 'History' which shows that I applied for a loan this morning - but does not say who with (I thought it was them) and it lists 'their lenders' as Wonga, Quick Quid and PayDay UK'.

The site says 'We charge no aditional or upfront fees, our service is completely free to use.'

Also, ' If I have a loan with another provider, can I take out a loan with VeryMerryLoans.com?'

RD

Oh dear please stay away from it well I can not tell you what to do but these loan companies are just bad hope u find a better way.

rorysdad

kittieworld wrote: »

1loan has a number on there site which you will never ever get though to someone

Yes. I tried it TODAY and got an automated message saying they were dealing with a high volume of calls as it was Christmas!

ffacoffipawb

rorysdad wrote: »

Yes. I tried it TODAY and got an automated message saying they were dealing with a high volume of calls as it was Christmas!

Makes sense - Sounds like Christmas every day for them.

bigadaj

rorysdad wrote: »

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

This thread has rambled on and you know the answer to how to get your money back and to be careful in the future but the above statement needs to be challenged.

The only reason you ever put card details into a website is when you are paying for something, this has nothing to do with identity checks or anything else. If you put card details in you will almost certainly be charged!

Apples2

rorysdad wrote: »

Yes. I tried it TODAY and got an automated message saying they were dealing with a high volume of calls as it was Christmas!

So you aren't too bothered about a refund at all then?

The guidance is on here, nowhere has anyone suggested you should ring them. If writing to them is simply too much trouble, just put it out of your mind and move on.

kingstreet

http://financialreporter.co.uk/view.asp?ID=14486

Citizens Advice urges FCA to clamp down on credit brokers
Monday, January 20, 2014 Published by AMY LODDINGTON

Cash-strapped consumers are being ripped off by credit brokers who are charging unexpected fees for organising loans, passing bank details onto other brokers who siphon further charges and even are ‘posing’ as payday lenders.
New figures from Citizens Advice finds 2 in 5 people who complained about a credit broker have problems with up-front fees.

Of those, 58% were charged unexpected fees. The other 42% were subject to deceptive practices including charging much higher fees than agreed, fees for services they never signed up to and pretending to be a lender instead of a broker. The fees charged can be as much as £70.

Citizens Advice, which celebrates its 75th anniversary this year, is urging MPs to discuss the issue of credit brokers as part of its debate on payday loan companies today. The new evidence from the consumer body suggests these firms are cashing in on the demand for short-term credit and some are ‘posing’ as payday lenders.

Often consumers believe they are dealing directly with a payday loan company because websites or marketing text messages from some brokers do not make it clear they are a broker. Borrowers are then hit with an unexpected fee and in some cases don’t actually go on to get a loan.

The new data is from an analysis of 490 problems reported to the Citizens Advice consumer service in England and Wales about credit brokers during June and July 2013.

A fifth of consumers who complained to the Citizens Advice consumer service had their card details passed onto other brokers without their knowledge and 19% had not applied for a loan. Some people had not even completed the application process but still found their cards being charged.

Based on the analysis Citizens Advice estimates 3,000 problems with credit brokers were reported to the consumer service each year. The consumer body believes many more people are having problems with these services without realising they’re dealing with a credit broker.

Citizens Advice is calling on the Financial Conduct Authority, which takes on regulation for consumer credit in April, to take an equally tough stance against credit brokers as it is doing for payday loans.

Citizens Advice Chief Executive Gillian Guy said:

“Credit brokers should not be making people’s money problems worse by charging unexpected fees. In some cases, brokers are preying on people’s need for short-term credit and adding to the pain of poor payday lending by posing as a direct lender.

“For many people money is really stretched during January and this could lead to more and more people considering taking out payday loans. Anyone who is finding it a struggle should get advice first and be wary about providing any details online to firms that could be brokers.

“Credit brokers must be transparent about the service they offer and any fees they charge. The FCA needs to recognise the harm menaces in this industry can cause and come down hard on those who break the rules. Preventing unscrupulous brokers from entering the market in the first place, through a strict authorisation process is essential. The FCA should also be seriously concerned about the prevalence of data sharing among brokers as money is being siphoned from people’s bank account without clear permission.”