I Am Looking For An Unsecured Personal Loan, Should I Pay A Broker Fee
Copyright (c) 2011 Steve Wentworth
There are numerous loan brokers in the industry who charge upfront broker fees for sourcing an appropriate loan, they may well find a suitable loan for you however, if you are hunting a loan because you are short on cash then why give an upfront fee, this will only make you even shorter on cash. If you have a good credit rating then your bank or the high street banks will most likely offer you the lowest rates. For those with adverse credit or who have been refused by the high street banks then a loan broker having no upfront fee will be your best option.
Loan agents who do not charge upfront fees usually earn commission from the lender if they successfully source an appropriate loan for their customer. The client is in the driving seat, they will receive information on the loan, such-as monthly payments and Annual Percentage Rate, if happy with the conditions then they can sign the declaration and supply all relevant documentation, such as proof of identity, residency and wage slips.
Loan advisers who do charge upfront fees around £40- £80 usually charge this fee before any illustrations have been given to the individual. They run with intrusive email selling campaigns. They operate call centres where staff usually read from a predetermined script (not specific to the borrower). If a refund of the upfront fees where required this is often extremely difficult to obtain, such as calling expensive phone numbers then being put on hold. Even then the individual is not guaranteed to get through to anyone nor retrieve their refund. By law the Consumer Credit Agreement states that if no loan is provided the maximum amount which can be held by a loan broking firm is £5 for administration. Therefore, if you are in this position and you have attempted to recall your money from a fee charging loan adviser then you can take your objection to the Financial Ombudsman.
Whatever the case, if you are attempting to acquire credit from a loan advisor their company must be listed on the Office of Fair Trading's Consumer Credit Licence register.
Be extremely cautious, and do not give away your account details unless you are sure who you are dealing with!
About the Author
Steve Wentworth formed his firm Wentworth Financial Services Ltd in November 2007 and has been in the Mortgage Industry since November 2002. Unsecured personal loans for good and bad credit with no broker fee visit http://www.wentworthfs.co.uk/loans/personal-loans.aspx.
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