It has come to our attention that there are a growing number of websites that have been set up which appear to offer payday and short term loans. However, unlike our listed payday loan companies, these companies are not actual money lenders, instead they are payday loan brokers, and you may be blissfully unaware of how these companies work and operate.
When you visit a real payday lenders website you will find sliders which allow you to instantly see how much you are going to have to pay back once you have selected an amount of cash, via those online sliders along with also inputting how long you want to borrow the money for.
A payday loan broking site can often look identical to such a payday lenders website, sliders and all! However, when you utilize these sliders you will then be asked to fill in your details as normal via an online application form.
After filling in this form you will then be taken to another form which will see you having to input your debit card details as you would on a payday loan website. However, this is where the similarities of a payday loan companies changes from a payday loan brokers.
Instead of charging your debit card just a few pence or a couple of pounds to ensure the card is a valid one which payday loan companies will do, hidden somewhere in the terms and conditions of a payday loan brokers website will be a small clause which says that once you have completed your application that company will then charge your debit card a large one off brokers fee.
They will then attempt to withdraw from your bank account a large one off payment, this could be any amount but usually it is somewhere from £50 to £70! This fee is charged to you simply for you filling out their application form, and once done they will then present to you on their website or they will email you a list of payday lenders who may (not definitely, just may) lend you some money!
These payday brokers operate on the boundaries of the law and even if you do not have enough money to pay their fee when filling in the application form online they will, every few hours, try and take it out of your account. They may eventually strike lucky and manage to get hold of your money (their supposed fee) when you have enough funds in your bank account, and if so you are not going to be able to get it back from your bank!
The web is full of people complaining that they have been hit with one of these advance fee payday loan brokers charges, and the way their websites have been put together are such that you are often completely unaware you are not applying for a loan off them but simply signing up to their brokerage.
These companies often have a premium rate telephone line, so when you finally realise they have taken their fee out of your bank account and phone up to complain you are often left on hold for a long time, racking up a big phone bill. If you complain to your bank and try and get your money back, as you will have felt cheated after paying their fee, they will then send your bank the often very well hidden terms and conditions you filled in when applying for a supposed payday loan at their website.
Being a payday broking site, if they do not manage to get you a loan, which in reality all they do is give you a list of payday loan websites and companies in exchange for their shockingly high fee, then after 6 months you may be entitled to a refund of that fee.
This will entail you having to fill in another form and then hoping it reaches them before the refund deadline expires. However, these brokers will often pull every single stunt they can think of to avoid having to give you your money back, and unfortunately as they work just on the boundaries of the law you are highly unlikely to get your money back from them!
With all of the above in mind, please be very, very careful when apply for any type of payday or short term loan and only deal directly with the companies lending you the money and not a broker or it could cost you dear when you can least afford it.