Desperate For Cash? Watch Out For the Loan Brokers

Following the uptake of payday loans in the past few years while the UK economy nosedived, news and consumer programmes have increasingly warned of the risks of payday loans and shone a spotlight on some of the worst offenders and practices.

Now BBC Money Box warns of a new threat: Loan brokers. People in need of cash are using loan broker sites to try and find the best option or are mistaking them for sites offering a loan, only to get stung by hidden charges.  Money Box highlighted the case of a lady who had given over her card details for verification purposes only but later discovered hundreds of pounds had been taken.

On some sites the fact that they are just a broker rather than a lender – and the details of their charges – only appear a long way down in the small print.

The Independent warns of instances where multiple payments were taken from customers’ accounts and bank details were passed on to up to 200 other companies.

The Financial Conduct Authority site offers some guidance on loans, along with a contact number and email address for those looking for more help.