Yes Loans criticised by OFT
The Office of Fair Trading has criticised a loan broker after receiving a series of complaints from unhappy customers. The complaints were made about Yes Loans, and the complaints related to the fact that many consumers were given the impression that YES was a lender and not a broker.
As a result of the complaints the company has been told that it must ensure that it is made clear that it is a loan broker that passes details of applicants onto other lenders, and that it is not an actual lender itself.
Loans through YES are designed for those with damaged credit, and because of this the loans that are offered through the broker are typically high interest loans.
Applicants were not happy when they were told that they would have to pay a referral fee for being introduced to a lender, as many were under the impression that YES was the lender and would be the company that provided them with the loan. The cost of the referral fee charges varied based on the size of the loan being taken.
The company has also been slated for failing to return brokerage fees as well as failing to be clear about being a broker and not a lender.
If a customer pulls out of the applications process or the company fails to find a loan for the applicant it must, by law, refund the referral fee, but in many cases it has failed to do this according to reports. It has now been told by the OFT that it must ensure that refunds are provided within thirty days to eligible consumers.
An official from the OFT said: ‘Many businesses charge an up-front fee for brokering loans for consumers, and customers should be aware that if they use a broker but do not accept the credit offered, no matter what the reason, they are entitled to a refund less £5. The OFT will continue to take action against companies who fail to do so.’
Related Posts
Consumer felt duped by Yes Loans
A borrower in the UK, Louise Cowan, has recently detailed in a report how she felt duped by Yes Loans after being given the impression that she was being accepted for a loan only to find that she had then been passed on to some debt management firm. »
Highest number of mortgage complaints received by Bank of Scotland
According to figures received from the Financial Ombudsman Service the highest number of complaints in relation to home loans and mortgages has been received by the Bank of Scotland. »
Banks could be named and shamed over PPI complaints
Later this year the Financial Ombudsman Service is set to announce individual figures for banks and financial institutions with regards to the level of complaints each ash received about PPI or Payment Protection Insurance. »
Fairness deadline issued to lenders
Lenders who deal with home loans have been given a fairness deadline, and have been told that they could face hefty fines if they fail to treat customers fairly when it comes to dealing with arrears on home loans. Lenders have been told that they must prove that customers that are in arrears or are facing repossession are being treated fairly and that they have to provide this proof by 31st of January. »
Watchdog to keep close eye on loan adverts and comparison sites
It has been revealed recently that an industry watchdog is going to be keeping a closer than usual eye on loan advertisements and financial comparison sites in order to try and provide consumers with increased protection during the recession. »
8 Comments
Leave a comment »Leave a comment
More from Loan News category
Ads and sponsors
Yes Loans wot can I say they are con artises they all ways say yes but mean no, we applied for a loan but did not have the money in the account at the time so we set a date for when the money came in and said we will call to confirm the application for the loan, and on the set date they took the money out that morning before we had a chance to call them and the money was taken out early.We decided not to go ahead with the loan but they all ready took the money out before we knew it .My advice is be carefull who you take on.
Re Yes Loans.
I have received a series of text messages from Yes Loans saying that they have received my loan application, and to call them back.
As a retired pensioner I wouldn’t dream of applying for a loan, except from the pension service perhaps, as I know I couldn’t pay it back!
They are obviously fishing for OAP’s and as such are crooks.
Regards
E. Keogh
4 weekes ago i apply for a £500 pound loan they took the fee out of my account of£69.95 and since then when i ring they complet ignore me and no help at all.they are a disgrace . iam sure someone can stop this scam its not fair you losing your money like this ,it is anyway i will be able to get my money back?
thanks
Carlos, I believe that Yes Loans offer a full refund less a £5 admin charge – however I am not sure what the criteria is for that.
Hi well what can i say only same as others i applied with yes loans back in sept 2007 and after paying the ( IM AN IDIOT) fee i heard nothing for some time 2yrs in fact well i accepted i had lost my £49 fee and that some fatcat was going to enjoy his life on my and loads of other peoples hard earned/or even goverment benefit money. Well Ding Ding went my phone 20mins ago a Message and yep you guessed it YES LOANS “hi you have been accepted please call yes loans now to complete you application….. yet i had tried ringing them an emailing them back in jan 08 and could not get in touch with them. I think this is a bad bad company and would advise others NOT to use YES LOANS (I had a bad racing accident sometime ago so cant afford a small claims court has anyone any other ideas?)
after being told i was accepted for a loan and was not advised of any fee or money being taken from my acount yes loans told me that they needed my card details for just a id check i found out two days later that they had took £60.50 out my bank.also they told me they couldnt find me a lender no mention of any fee was made and on this date 1.3.10 on the website states no fees either. i cannot belive this compant can con and steal of people like this i will do my best to get a refund but more to the point to stop this scam from others.
They must give you a refund, they will however deduct an ‘admin’ charge – I believe that is £5 but not sure.
how do get your money back frm yes loans iv been tryn but never can get threw. iv been sittn on the fone for 15mins or more @ 10p a min