How to Spot a Fee Charging Broker

How to Spot a Fee Charging Broker
October 22, 2014 CashLady
How to Spot a Fee Charging Broker

To put things in context, when we say fee charging brokers we are referring to online brokers that take declined payday loan applications and try to generate additional revenues for the lead generators that pass them those leads by charging a “loan finding” fee  from the customer. In most cases the fee is unjustified because at that stage of the application process there is no lender that is willing to accept the lead and grant a loan to the customer.

What this means is that the customer is being charged a fee but get no value for their money. Fee charging brokers will try to mislead the customer who is in a desperate need of short term finance into thinking they have found a loan for them and ask for their debit card details which will then be used to charge their fee. See example below:

 

Words like – “View your loan summary and complete these form to be forwarded to your lender”, Loan Example, Loan Sample, Loan repayment terms and in the small letters – we charge a fee of xx.xx for this service will usually appear on this form. They would try and make it look as if the loan is already arranged and will be presented in a click of a button. As shown, payment and fees are usually in the small wording – “we charge a fee of….” membership fees, etc.

Make no mistake about it – when you finish providing your card details you will be presented with a list of lenders who have never seen your applications and are very unlikely to approve a loan. They will usually list some well known guarantor loan options and other options which can easily be found on many loan comparison websites such as moneysupermarket or others. The chances of being approved by one of these are pretty low as the customers have already been declined by the majority of online payday lenders.

To make their “membership” package look more attractive they would include a “free trial” with a credit reporting service which will then cost the customer even more once the first payment kicks in.

But wait, this is not everything… In the next few days these customers will receive tens of text messages sending them to even more fee charging broker sites with a promise of more funds. Until the customer realizes they have been charged several times and received no loan its going to be too late. In some cases charges could be in the hundreds and getting a refund is usually a very slow process which needs to be done in writing… There is absolutely no guarantee that the charging broker can be easily traced.

BTW, if you apply with CashLady or KwikCash – we guarantee no fee charging broker will ever see your application. We only work with reputable lenders who have gone through a mutual compliance check and will never show your data to fee charging brokers.

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