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  • #1

    Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

    Hi all, sorry I haven't been around for a good while. But I'm not doing too bad at the minute.
    I was hoping for some advice for someone I'm trying to help. Now to be fair I'm not sure if I'm being fed a load of BS, but this is how it goes.
    This Person applied for a Pay Day Loan through a Text Message. It turns out it's a company working as an agent that supposedly represents several lenders. In the small print there is a clause saying you will pay £65.00 Commission regardless whether your application is successful or not. If Successful the money will be deducted from the loan, if not the fee will be taken from your bank account between 3 to 60 days of your initial application.

    Now this person has a Car insurance payment due but is scared to put the money into his account as it will be swallowed up by the pending fee.

    Now like I said the explanation I have had doesn't sound right.
    Are there such Firms and is so can they levy this sort of fee? I asked if he was so desperate why didn't he go straight to a loan company. He say's in the early stages he thought he had, it was only later he discovered they were agents. He also says this happened with another loan company/agent about a year ago. I can understand why he need the loan as he want's to go North at the end of the Month in time for his little girls birthday, and the money is needed to part finance the trip.

    I haven't heard of this before and to me it sounds down right illegal. I have asked him to supply me with the name of the agency and a copy of the agreement.

    Any information on this will help greatly.

    Regards to all, Handy
    Mother Nature Don't Draw Straight lines, We are Broken Moulds in Life's Grand Design, We look a Mess but we're doing fine,
    Life Long Card Carrying Member Of the Union of Different Kinds.
    Tags: account, action, advice, agency, agents, atos, bank, bank account, broker, car, card, complaints, con, court, credit, debit card, details, direct debit, disability, family, fee, fees, finance, fos, fraud, help, information, insurance, interest, interest rates, letter, loan, loans, lost, money, overdraft, payday, payday loans, pdl, police, rates, santander, scam, scams, shopping, telephone, text, trap, welcome finance
  • #2
    Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

    Hi Handy...good to see you.

    Sorry, I don't know the first thing about payday loans but I'm sure there'll be someone around later who can help.
    Let your smile change the world but don't let the world change your smile

    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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    • #3
      Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

      Hi Handy, I suspect that the loan will never materialise but the fee will be deducted. Advance Fee Fraud.

      Might be an idea for him to speak to Action Fraud: http://www.actionfraud.police.uk/node/290

      Comment

      • #4
        Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

        Im not sure if it was an agent or a PDL directly, but a family friend told us some time ago, that she was charged £75 regardless of whether she was approved the loan or not. I remember the story because i laughed and said, it was a great way for them to earn money for nothing.
        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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        • #5
          Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

          Hi all, thanks for the Prompt replies. I also thought this sounds like Fraud. What's to say I set up promising to find folks the best Pay day Loan and then sitting back for a day or two before hitting them with a fat fee for sod all. What a Con!
          With luck I may have some names later this evening, then I can do a little more digging.

          Regards all, Handy
          Mother Nature Don't Draw Straight lines, We are Broken Moulds in Life's Grand Design, We look a Mess but we're doing fine,
          Life Long Card Carrying Member Of the Union of Different Kinds.

          Comment

          • #6
            Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

            Hi again, Just been doing some digging. This looks like it.
            From June 2011. "These dodgy lenders usually contact their victims by telephone or via text messages, promising to provide attractive loans on payment of an upfront finder's fee. Alas, many of these loan offers never materialise. Instead, dishonest credit brokers pocket the initial fees and then ignore customer complaints."

            (LINK)             http://www.lovemoney.com/news/scams-...this-loan-scam

            Now to tackle his Bank the Coop who have told him this payment can't be cancelled! I can feel a sod off letter in the offing, but please if anyone can give advice on this it would still be appreciated.

            Regards, Handy
            Mother Nature Don't Draw Straight lines, We are Broken Moulds in Life's Grand Design, We look a Mess but we're doing fine,
            Life Long Card Carrying Member Of the Union of Different Kinds.

            Comment

            • #7
              Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

              Handy

              Its the same sort of scam that YES loans used to pull - how did the company take the payment?

              If your friend just gave them debit card details, then I'd be cancel the card (report it lost in shopping centre), and then set up a new payment with the car insurance company (or direct debit if possible). That way when the dodgy company try to take the payment it'll get rejected. Let them then try to take your friend to court for the payment!

              SnV
              "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."

              The consumer is that sleeping giant.!!


              I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

              If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

              Comment

              • #8
                Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

                Hi SnV, the firm is called Website Loans. of Glossop Derbyshire. The Lad has been keeping his account below £69.00 so they can't take it. Trouble is he now needs to put in money to pay his car insurance. Since Atos stopped his disability it's a struggle. I did some digging and the FOS were going to stamp down on fees back in 2011. The fudge they came up with is that if no loan is offered or taken within 6 months of the money leaving your account you can write to the Broker who then has to refund the money less £5.00 admin charge. If you take a loan and you think the fee is too much you can also do the same. For a lot of folk 6 months is far too long a wait for a refund for what is a dubious practice.

                I'm getting a letter off on his behalf saying he is willing to pay the £5.00 but not the full amount. As he no longer requires their services this will save them the trouble of making a refund at a later date.

                Now for the next problem, he stupidly got caught up in one of these £10.00 p/m discount club schemes. With luck I should be able to get him a refund towards taxing his car.

                Regards, Handy :-)
                Mother Nature Don't Draw Straight lines, We are Broken Moulds in Life's Grand Design, We look a Mess but we're doing fine,
                Life Long Card Carrying Member Of the Union of Different Kinds.

                Comment

                • #9
                  Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

                  As SnV said, very much as YES (and I believe Welcome Finance) used to operate. They will (eventually) find you a loan, charge you for the privilege and the interest rates tend to be extortionate.

                  I once fell into this trap and applied at YES - long before this or any forum. I called them to cancel, and the chap I spoke to was quite helpful. He said that they had my card details so could possibly take the payment, "but if I no longer had the card, that couldnt happen - do you understand what I mean?"

                  Personally, I would do as SnV said, cancel the card - assuming that the Car Insurance is set up by DD (using bank account details) it will make no difference to that payment and it will leave as normal.

                  I wouldnt offer the company anything, the fee (allegedly) is for them to find a loan - if they dont /cant find one, then they haven't provided a service and are not entitled to it (IMO). (IMO).
                  Last edited by oscar; 16 October 2013, 11:54. Reason: atrocious spelling
                  I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                  If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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                  • #10
                    Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

                    i only always deal with a broker whos either paid directly by the lender, or is paid on acceptance, either way no money goes out of my hands unless i get a result. Never had a PDL (and never will) so i can see how its abit harder, as you no doubt have to give your details over before you know whether you have been accepted.

                    Regarding car insurance, if its a 1 off annual payment, just ring them up and change the method of payment, if its a standing order just change the account they money is taken from, isnt a big deal, the biggest deal is sorting these rip off merchants out.
                    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                    Comment

                    • #11
                      Re: Information needed about Agents Fees £65.00 to apply for loan Successful or Not!

                      Originally posted by Handyman View Post
                      The Lad has been keeping his account below £69.00 so they can't take it.
                      Hi Handy - I would suggest this is a risky approach - I'd be concerned his bank allows the money to be taken and put your friend into an 'unarranged overdraft' and then slap your friend with further fees for the privilege? This is a favourite trick of Santander and they apply two seperate fees to add insult to injury (one called an 'instant overdraft request fee' and then one for the unarranged overdraft

                      Originally posted by Handyman View Post
                      Trouble is he now needs to put in money to pay his car insurance. Since Atos stopped his disability it's a struggle. I did some digging and the FOS were going to stamp down on fees back in 2011. The fudge they came up with is that if no loan is offered or taken within 6 months of the money leaving your account you can write to the Broker who then has to refund the money less £5.00 admin charge. If you take a loan and you think the fee is too much you can also do the same. For a lot of folk 6 months is far too long a wait for a refund for what is a dubious practice.
                      If your friend has not given this broker his bank account details, and only his debit card, then I would not be giving them any such notice that they are not going to get their money. I'd just be cancelling the card so that its details cannot be used and then let them go whistle for the money and let them test the legality of the charge in court.........
                      "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."

                      The consumer is that sleeping giant.!!


                      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                      If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                      Comment

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