News : Poor Credit Cash Loans
Rip-off loan companies take advantage of hard up families
June 29, 2008
Rip-off loan companies are demanding up-front "arrangement" fees from families desperate for cash, a Sunday Mirror investigation reveals.
Hard-up Britons are being charged between £30 and £60 to set up personal loans to pay soaring bills.
And worse, in many cases they are turned down for loans but cannot get their money back.
Our investigation shows loan firms are cashing in on the credit crunch by targeting low-income families with poor credit ratings who can't get cash from high street banks.
Last night campaigners called for industry watchdogs to stamp out the practice.
Citizens' Advice policy expert Alex MacDermott said: "There are firms out there charging an upfront fee to arrange a loan when quite often all they do is give people a phone number of a firm".
Details of the charges are often hidden in the small print of mailshots or in ads on the internet.
Source : http://www.sundaymirror.co.uk/
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