Unfortunately there could of been a time where you have been charged an up front fee with promises from brokers saying they will find you a loan or having to pay a fee just to apply and ethically this is wrong. Why should you pay anything beforehand if the reason you are looking for a loan is because your short of funds for whatever reason and should not be charged up front fees for information that is free.
What Can We Do Better To Avoid Brokers
Its crazy to think these companies still exist leaving customers out of pocket with no guarantee you will accepted for a guarantor loan or any other type of loan for that matter. There is hope now with FCA regulating the financial the guarantor industry trying to stamp out any up front fees and protecting customers from unnecessary costs. The best thing you can do as a customer is apply direct with guarantor lenders and avoid brokers. All the lenders listed on our site do not charge fees for applying or charge arrangement fees which should give you peace of mind that your bank account won’t be raided just for applying.
There are some brokers that don’t charge any fees up front but its always a good idea to have a look round and deal with a direct lender as all the brokers will be doing is forwarding your details on and you can save yourself time and hassle just working directly. When working direct with a guarantor lender they will have a better understanding of the products they are offering and will be more accurate whereas with brokers they may have a brief outline of what a lender offers and may not have the most up to date information.
Protect Yourself From Broker Fees
Always read the terms and conditions on every broker and lenders site they should clearly state if they charge any fees and if you feel your bank account has been compromised please take this up with your bank and contact the FCA. Always apply direct if possible usually at the bottom of the site or in the about us section they should state if they are a direct lender or broker protect yourself at all times from rogue companies.