The payday
lending industry is a successfully growing one, and with every such industry,
there are some people too who want to cash in on this success by using
malpractices or deceptive methods. In case of instant payday loans in Birmingham,
it is the brokers who were found creating troubles recently. A lot of
borrowers, especially new ones who were unaware about the payday
loan practices and malpractices, are complaining about some brokers who
charged very high amount of fees to arrange payday loans for them. This problem
was faced by a large number of borrowers, with some of them being charged up to
a huge amount of £60 by such brokers for processing their applications for
instant payday loans in Birmingham. Apart from the huge fees, some of the
brokers had very comfortable waiting periods of up to six months before they
can find a result for the borrower. This was unacceptable, as such a long time
to find a payday loan package would defeat the main purpose of payday loans,
which is to be fast and flexible, as most of the borrowers borrow payday loan
for instant emergencies.
Brokers Charge Huge Fees
The Citizens Advice Bureau provided
some important figures which indicated that around two out of five people who
had filed a complaint regarding payday loans did so as they were being charged
such huge fees by the brokers. More than half of such people were being charged
such fees while the rest of the borrowers were facing deceptive malpractices
used by a few brokers, like charging irrelevant fees for which the borrowers
never agreed. Also, there were many instances when a few brokers were posing as
direct lenders rather than stating that they were brokers.
Brokers Take Months to Process Loans
Many people in
the UK nowadays use payday loans for emergencies because of the advantages of
this type of credit. Instant payday loans in Birmingham are easy to apply for
and the loan reaches your account in within an hour or two. The whole process
is completed online and is very quick. Good brokers are able to get good payday
loan packages for the borrowers so that they can get the needed amount quickly,
sometimes on the same day when the loan was requested. But in many complaints
that were made by the borrowers to the Citizen’s Advice Bureau, the borrowers
stated that the brokers had taken a lot of months to process their application
while many had not received the loan still, even after getting charged a huge
amount in fees by the brokers.
Many Brokers pretend to be Direct Lenders
There are many good
brokers who clearly state upfront that they are not direct lenders but brokers
who offer to get payday loans for the borrowers on their behalf. The Citizens
Advice Bureau found that a lot of borrowers who were applying for instant
payday loans in Birmingham were under the impression that they were dealing
with a direct lender, but they actually were being deceived by a broker with
the help of confusing and sometimes deceptive marketing messages on their
websites. This can be a problem when you search online for any service or
product; the websites can look very genuine and convincing. Determining whether
a website is of a broker or a direct lender is one of the most major issues
that are being faced by borrowers. The solution for this is that, if you are
not sure whether an organization or website is a direct lender or a broker,
then let your doubts win and move on to find another lender which you can
surely say is genuine and upfront in its role and does not charge any extra
fees.
Brokers Refuse to Refund the Fees
The biggest
problem faced by a lot of payday loan borrowers is that some of them
unintentionally used a broker and paid him the fees upfront, who then refused
to return the fee. Getting a refund can be very difficult at such times. A lot
of brokers refuse to refund the fees simply, even though they are bound to
repay it back to the borrowers in case they don’t get them any loans. The
figures from the Citizen’s Advice Bureau stated that around 28% of the
borrowers reported this problem.
So it is advised
that you stay away from brokers and rather go directly to a major reputed
lender for getting instant payday
loans in Birmingham.
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