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Loan intermediaries and payday loan
When you are looking for a payday loan, using a loan broker to find one could be costing you cash in needless charges. On this page you will learn more about what you should think about before using a loan intermediary to find a payday loan. Which are the loan intermediaries? What were the reasons for the problem with some loan intermediaries?
Should you use a loan intermediary to find a payday loan? Which are the loan intermediaries? Loan intermediaries are companies that can help you find a loan, for example because you have a bad loan record. A number of loan intermediaries work on-line through websites and specialize in payday and other costly short-term lending.
What were the reasons for the problem with some loan intermediaries? Several companies have not made it clear to clients that they are loan intermediaries - their websites may have implicated that they are a borrower who can grant a loan directly. Some of them accepted payment from consumers' banking account without authorisation and without rendering the services that they had agreed to.
Frequently, they were not aware that they were actually registering for a loan brokerage agency. The reason they gave their account information was because they were informed that it was intended to verify their identities or to allow the creditor to carry out a loan assessment. As soon as someone has passed on their own data, some intermediaries would give it to other intermediaries, even without the customer's prior notice or agreement.
Often, the client had several charges collected from his bank but did not get a loan. A number of these intermediaries were not listed with the Financial Conduct Authority (FCA) or traded illicitly under a different name. Should you use a loan intermediary to find a payday loan?
There is no need to use a loan intermediary to look for a payday loan. It' s quite simple to benchmark the markets yourself by going to the websites of single creditors or using a benchmark website. Again, think twice before you sign up for a payday loan. Failure to repay the loan within the stipulated time could result in deep debts.
Once you have registered with a loan brokerage company either on-line or by telephone and decided that you no longer want it, you can reverse it and claim your funds back. It is subject to the EZV's remote distribution regulations - but you must terminate within 14 workdays. There is no need to give a good cause for cancellation, and the intermediary should reimburse any charges you have made within 30 workdays.
She can only withhold part of the charge if she has actually provided a charge to you in the time prior to your cancellation. When you have a reimbursement issue, you can contact the financial advisor's Consumers Services through the loan intermediary. Once you have given your intermediary your billing information, you may have approved a Continuous Payments Authority (CPA) - even if you have not noticed it.
CPAs allow a business to withdraw funds from its own banking accounts. If you wish, you can terminate the contract by notifying the intermediary or asking your local savings and loan institution to suspend further payment. You should stick to it - but you must act quickly, preferably before the cash comes out.
In the event that a charge has already been made without your consent, request a full reimbursement from the depositary. When your institution rejects, you can use its official complaint process to lodge a complaint. When you are dissatisfied with the result, you can contact the Financial Officer. You should verify that the company is approved by the FCA before using a loan brokerage services.
You can inform the EZV's trading standards or client hotline if the loan intermediary is not authorized. You can also turn to Action Fraud, which addresses scams and financial cybercrime. For more information, visit the Action Freud website, which opens in a new browser window. Click here. According to the terms of the Financial Action Task Force (FCA), all intermediaries must make it clear who they are and what services they offer.
Furthermore, intermediaries are not permitted to invoice you for a commission or to take away your billing information unless they have previously sent you a written (or e-mail) notification clearly stating that they have done so: You may not bill a service or provide billing information to another individual unless you have confirmed (in written form or by email) that you have it.
Should you choose to continue and the agent does not grant you a loan within six month, you will be required to reimburse the charge minus £5 - this is under section 155 of the Consumer Credit Act.