Payday lending is open to scams so make sure you are dealing with a genuine payday lender or genuine payday broker for your short term loans
This intrepid writer is surfing around looking for new and controversial information on Payday Lenders. I will take anything. Especially those who can tell a great story about a short term loan that they took out to tide them over until their next pay check. This writer loves to live vicariously through all that this service can offer. The clubbing, the parties, the high life, champagne and sushi.
Then there is also the story about the guy who has taken out a quick loan to pay his rent, mortgage, energy bill with money he doesn’t have and probably never will. I would have actually jumped on a story about the old lady who used a payday loan to finance her dog’s root canal. But no! Payday, the major controversial God of the Underworld seems to have returned from whence it came. I can’t seem to find anything in the news that I haven’t heard before. The same complaints, the same insults, the same blame, the same disdain for Payday business practices. And then I stumbled across this.
The Ultimate Payday Loan Scam!
The middle man. The guy who is going to make sure you don’t get the short end of the stick. The latest development in the Payday world is the online middle man. This is the guy that is going to find you the best short term loan deal. Enter the Credit Broker.
Now lets face it, you have a broker in every walk of life, so is it really such a surprise that they have turned up here? Where there is money, there is a broker. Yes but in this case consumers keep finding themselves with bank accounts drained of hundreds of pounds. Credit Brokers are basically supposed to go out there and find you, their client, the best deal. If you are in the business of trying to find a loan or some credit for what ever you need. Your Broker should sort you out and can then take a commission for his work.
The problems that are starting to surface in the market place are that many of these so called credit brokers are posing as payday lenders. Not only that but they will also go through the motions of helping you apply for a loan, promise you that you will get said loan, but, however, when the loan falls through, you still find yourself with a hefty chunk of money extracted from your bank account in the name of fees.
According to the Financial Ombudsman Service (FOS), people rarely even understand that they are in communication with a Credit Broker in the first place. Most people think they are speaking straight to the payday company itself and then of course happily hand over all their banking details. Those details can be ping ponged all over the place and our poor client ends up not with the over-priced payday loan everyone is hollering about, but with something far worse. Hundreds of pounds spent on nothing!