Title: Payday Loans No Brokers-
1Payday Loans No Brokers
2Brokers have carried their notorious reputation
in the financial world, wherever they have gone
and this doesnt stop with payday lending.
Brokers, in general are considered less
trustworthy and a more risky affair as compared
to dealing directly with financial institutions.
This is one of the main reasons why payday
loans no brokers are considered a lot more
legal and trust worthy.
3The recent debate circling around credit brokers,
especially when it comes to payday loans and what
the ways should be to tackle this problem. It has
identified that there are a majority of people
who dont realize who they are working with, that
would mean that many of the brokers do not
provide sufficient credentials so as a result of
that, the borrowers dont know who these brokers
are working for and what kind of fees they would
charge..
4As a result of this, the Financial Conduct
Authority has made it mandatory that brokers
reveal all the required information about who the
borrowers are dealing with and the fees payable
before finalizing the loan. This law basically is
working towards making the functioning more
transparent rather than just limiting the fees
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6There are certain frameworks which the law has
made compulsory to abide by It has
become mandatory to reveal their true name, as
mentioned in the Financial Services register (not
just their trading name) in all their
communication with the borrower. This would
include advertising through all forms of media
including on ground communication.
There are certain brokers who act just as brokers
and not as lenders. If that is the case, then the
borrower has the right to know and this should be
communicated by the firm beforehand. This would
mean carrying a statement implying the same in
clear terms.
7 The Financial Conduct Authority is
still working on the exact cap on the interest or
the fees charged, but the borrower should be
communicated about the expected amount he would
have to pay at the end of the loan including the
fees and by when it will be payable. If
they apply via online or on the phone via a
credit broker, they are entitled to 14 calendar
days to cancel their loan and get a refund of
their fees.
8Why payday loans no brokers? There are several
reasons why you should be directly with dealing
with a lender rather than going through a broker,
especially in the case of payday loans because it
is always more advisable to be closer to the
source of the fund. Some of the reasons why this
is more popular are because
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10There have been allegations made by the banks
where they claim that brokers in one month alone
make almost close to 1 million attempts to remove
money from peoples accounts and there are
borrowers who have received almost 650 calls per
day. There are many brokers who exist
in the market who are responsible for providing a
service to the customer and that is how they
position themselves but more often than not, they
take a borrowers credit card details and charge
their broker fees which are, on an average, 70
pounds and dont even bother securing a loan for
the customer. This is one of the most common
practices when it comes to payday loans brokers
11 Due to the lack of education on the part of the
borrower, when he applies for a loan online, he
is under the impression that he is directly
engaging with the lender, but many a time their
information is being passed on to third parties.
This is because these are agents who are hired to
ensure that the lender gets maximum customers and
without much effort. As a result of this, a
customer is not in control of his actions.
12As a result of this third party affiliation, it
has been noted that their credit card details are
passed on to not just one broker, but could
extend upto almost 200 brokers who have access to
their personal information and can charge them
their broker fee without even applying for a loan
or without them even securing a loan.
The age group of these borrowers facing this
crisis is usually between 18-40 on relatively low
incomes. There have been cases where a broker fee
has been charged by 10 brokers which have
resulted in a total deduction of almost 700
pounds.
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14This situation is not improving as financial
authorities are saying that the cases have more
than tripled in the last six months and this has
been on the rise. The most common complaints to
the financial Ombudsman have been the
following Money being debited from
their accounts without any prior permission.
Borrowers not receiving the loans they were
after because they found a better rate of
interest somewhere else or they found out that
the lender who they are speaking to was bogus or
werent regulated.
15It has been observed that most of the borrowers
have received the money after complaining with
the Financial Ombudsman. The financial Ombudsman
needs to play a greater role than just solving
complaints by educating the consumer about his
rights and ensuring that these practices receive
due attention at the right time. Borrowers need
to be educated about these practices adopted by
these lenders and should realize that is not
advisable to reveal their bank account details
online, as this can lead to severe malpractices.
16It is important the borrower understands his
responsibility as a borrower and realizes the
need for education, so that he doesnt find
himself in a vulnerable position again. This
would mean keeping a check on the financial
expenses to start with and doing thorough
research when the needs for such loans arise.
Taking the help of reputed financial institutions
in deciding what the best option available is,
would also be a good idea. There are a number of
helplines that are dedicated to serve this
purpose.
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18For more information find out more
www.pacific-odyssey.co.uk
Address i Salisbury House Station
Road Cambridge CB1 2LA
19Thank You