If you are thinking of getting a payday loan, then a credit broker can prove to be an expensive option. It can cost you a lot of money in the form of unnecessary fees. Let us know more about it before deciding whether or not to go for a credit broker for getting a payday loan.
What are credit brokers?
Credit brokers are basically firms that assist in finding loans when an applicant has got a poor credit history. A few credit brokers work online via websites. They specialize in various different services such as high-cost and short-term credit, payday loans, etc. bingoloans.co.uk is one of the most specialized and reputed loan lender firms in the UK.
Problems associated with a credit broker
People come across different issues when dealing with a credit broker. Some of them have been defined below:
- There are many firms in the market, who don’t make it clear to their customers whether they are money lender firm who offer direct loans or a credit broker. This makes people confused. Firms don’t make it clear whether they would charge fee for their services, and how much fee it would be. A few firms also took payments from the bank accounts of consumers, without their permission, and without offering the service that has been promised to them.
- People sign up to these firms, provide them financial details and confirm their identity later to find that their account will be debited from the bank account by the lender. People later find that these firms even charged them fees.
- Another thing of concern is that it has been seen that lenders pass the personal details of people to other credit brokers without the consent and knowledge of the customer.
- It has also been found, that even after deducting fee, they were not been provided with the loan amount.
- Also, in case of raising issues and complaints, they found that it was tough to contact the company. They were given futile reasons why the refund can’t be given.
- In some cases, credit brokers weren’t registered under the “Financial Conduct Authority”. They could even be trading unethically under a completely different name.
What should be done to avail a payday loan?
You do not have to use a credit broker firm to find a firm for payday loans. It is very easy to perform a thorough comparison in the market, by visiting individual lenders and use a price comparison site. It is advised to probe lenders to get a quotation from them and show how much it is going to cost you to borrow the amount.
This will get displayed as the ‘total payable amount’. Think carefully at the time of going for your payday loan. Keep in your mind that the interest rates are quite high that can cause the debt to become uncontrollable.
So, these are the reasons why hiring services of a credit broker is not advised to avail a payday loan.