Son just applied for a loan with upfront fees

[nowayjose]

Im so annoyed... my son (19) just informed me that he has applied for a loan for a car with (Edit) They phoned him back this morning and he has been told that he has been accepted for the loan but he has to pay an upfront 'service fee' of £49.. :mad:

He asked them has he been 100% guaranteed accepted... and he was told yes... 100%.... they then asked if they could take the fee out of his account today... he explained that he wouldnt be able to pay it until next Friday, but they then asked for his card details, which he stupidly gave to them, long card number/security code and everything. They told him that they will send him an email with their terms and conditions and he had accept them and then they would take the money out of his account. They said that until he accepted the t & c they wouldnt take the fee out... I dont trust these people and they have everything they need to take the money out on Friday.... Im soo mad that he has been taken in by these [problematic].... Any advice appreciated.

Edited September 4, 2009 by maroondevo52
Removed commercial link.

[sillygirl1]

As they haven;t taken the money yet get your son to report his card 'stolen' and get a new card and get the bank to IMMEDIATELY cancel the old card (they sometimes 'hang on' to the old card transaction details for a month, in this case it will be detremental to your son.

 

DONT tell the bank that this transaction has been made, they will only tell you that they have to process the card according to their details... in fact tell them the card was 'lost' the day before the number was given to the company, that way your son should be covered.

[pompeyfaith]

and when he has done the above introduce him to this great site as your son is young enough to wise up to the pitfulls of the financial industry better now than later in life

[king100]

Sorry to say that the company will tell him a couple of loan companies like Tescos or Egg which he could have found out on his own.

 

Personally I would phone up this company and say that you do not need their services anymore and ask for an email address to confirm this.

 

I have a funny feeling I know the company and if you search for them then you will get an email address to send to.

[nowayjose]

Card reported as lost and cancelled.... they cant do any thing now can they??? Thanks for the advice Sillygirl x

[42man]

NWJ...send me the name of the company via PM, i'll take a look at them....they should not be asking for upfront fees....report them to the OFT too...

[king100]

NWJ...send me the name of the company via PM, i'll take a look at them....they should not be asking for upfront fees....report them to the OFT too...

 

 

Take a look at Advantage Loans, thats one that ask for an admin fee then basacially said apply to these companies.

 

Many years ago i tried this sort of company paid £49.00.

 

They told me that they had found 3 loans guaranteed for me.

 

Transpires they hadent.

 

I might say this is how Advantage Loans were years ago not sure now.

[phil_nottingham]

Card reported as lost and cancelled.... they cant do any thing now can they??? Thanks for the advice Sillygirl x

 

Well now card is canceled your safe, the transaction will simply be declined:)

[maroondevo52]

The name of the company was, Best4Loans.com.

[sillygirl1]

Google their website and this stands out £500 at 150% interest:mad:

 

RATES FROM 7.9% APR TO 150% APR VARIABLE. TYPICAL APR OF 35%. OUR HIGHEST RATE IS FOR CUSTOMERS WITH SEVERE CREDIT PROBLEMS. WE ONLY PLACE SMALL LOAN SIZES OF UP TO £500 AT THESE RATES OF INTEREST.

IF YOU ARE A HOMEOWNER LOANS MAY BE SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.