If you have recently applied for a loan and have paid an arrangement fee to your broker, but have not taken up the offer, then you are entitled to a full refund of this money, less a fee of 5.00.
The Office of Fair Trading (OFT) recently alerted consumers to the fact that if they are not found a suitable loan within six months and don’t take up any loan offered – for whatever reason – the broker can keep only 5 of the arrangement fee.
On its website the OFT that: The Consumer Credit Act limits a credit broker’s charges to 5 if, following an introduction to a lender, an agreement is not signed within six months. If more than that has already been paid, brokers must refund the excess on request.
According to the OFT, it has been found that some brokers are targeting disadvantaged consumers. The broker will get their fee up front (approximately 50) and only afterwards does the consumer find that the prospective credit provider will only lend them amounts less than they require or that loans are only available with a guarantor.
Understandably, the consumer may wish to reject the loan offered and many do but are not aware that...
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