Brokers have carried their notorious reputation in the financial world, wherever they have gone and this doesn’t stop with payday lending. http://www.pacific-odyssey.co.uk

1. PAYDAY LOANS
NO BROKERS

2. Brokers have carried their notorious reputation in the
financial world, wherever they have gone and this doesn’t
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.

3. The 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 don’t 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 don’t know who these brokers are
working for and what kind of fees they would charge. As 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.

5. There 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.

6. 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.
· 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.

8. Why 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:
· There 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 people’s accounts and
there are borrowers who have received almost 650 calls per
day.

9. 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
borrower’s credit card details and charge their broker fees which
are, on an average, 70 pounds and don’t even bother securing a
loan for the customer. This is one of the most common practices
when it comes to payday loans brokers
· 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.

11. · As 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.

12. 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 weren’t regulated.
· People using these websites or in other words, applying
for a payday loan directly using the online services realized
they were not in touch with the lender directly but the
middlemen which most of these payday lenders ad employed.

14. It 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.

15. It is important the borrower understands his
responsibility as a borrower and realizes the need for
education, so that he doesn’t 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.

16. For more information learn more:
www.pacific-odyssey.co.uk

17. Thank You