Did you know that cash advance lenders are required to be fair to consumers? It’s an off-the-cuff question which may get some people to laugh others to say “well, yeah” and get some to start thinking about the practices they encountered when they took out a short-term loan.
Some people are totally unaware of what goes on behind the business practices of a lending company. Choosing to do business with a lender that shows visible signs of poor practices becomes a foolish decision on the borrower’s part. When such practices are recognized they should be reported immediately. Any lender that promotes poor lending practices should not have the privilege of lending money.
The Office of Fair Trading (located in the UK) has revoked the lending license of an online cash advance lender. There was evidence found last year that there were not adequate identity checks done on applicants which led to fraudsters taking advantage of many innocent residents. Applications were sent in under the pretense of being someone else and the loans were being processed without proper identity checks. Because the system failed, there were many people who were taken advantage of by the fraudsters.
Further information about this UK company continued to pour out about additional poor practices. This company was practicing writing to people (whom the company knew didn’t take out loans), requesting payment for outstanding loans. The Office of Fair Trading made requests to the company to stop these practices to no avail.
Upon further investigation, the company was found to have a lack of necessary skills, experience and knowledge needed to operate in the loan business. Their license to loan money has now been revoked with a clear message to all the UK lenders; engage in fair business practices or be shut down.
Any consumer, in the UK or the US, should not have to deal with lenders who pursue them unlawfully. Trying to collect on a loan that never happened, making threatening calls of any kind, debiting money out of an account which was not pat of the contract agreement are all examples of bad practices. Customers need to report a business if they experience one of these or any other unlawful practice by the company. When consumers avoid taking their problem to the proper authorities, the business will continue its ways on others. If people react and let their voice be known, the company will be investigated and if found in the wrong, will have their license revoked and large penalties will be charged against them.
Here in the United States, there have been many poor lending companies which have not only lost their license and paid fines, but also had to pay restitution to the customers involved.
Responsible cash advance companies do exist.
The hard part of reading reports about bad cash lenders is the negative reputation it gives to all in this category. The best way to protect yourself when searching for an online lender is to find one from a referral or comparative shopping. Do your homework thoroughly and talk to the company directly.
