As people turn into “spending” mode to welcome the festival season prior the New Year, the news reports citing the prevalence of loan sharks have started hovering over the national newspapers in the UK. One of the painful incidences cited how some of the illegal lenders targeted mothers waiting for their kids at school gates.
Nevertheless it is well known how borrowing regulations in the UK have made doorstep borrowing as a convenient fund raising mode for people with less than perfect score. Whether it is the New Year or the spring, you must always be financially prudent to identify legitimate lenders from the illegitimate ones.
The most hassle free access to doorstep loans certainly could be attributed to a broking by FCA authorised loan broker. Citing the gravity of the issue, one of the national dailies quoted a financial expert who detailed the anonymity of Loan sharks with apt words- they are everywhere around you. They share the same apartments, the same council estates, the same clubs and pubs. You just cannot escape one as loan sharks tend to find you, if you need a loan!
Watch First Point of Contact
Whether your car broke, or you have huge outstanding credit bills, be careful enough to not deal directly with a lender who contacts you on his own. The first point of contact needs to be initiated by you, whatever be your credit hassles. Never get tempted by the marketing gimmicks of sham lenders. Many a times, the loan sharks lure the borrowers with partial terms of loans and use ill practices to recover dues later on.
Deal with FCA regulated Partners
Contacting a legitimate loan broker ensures a safe route to regulated lenders. Whether you need very fast doorstep loans without guarantor or on flexible weekly instalments, you must choose a legitimate broking firm to get access to reliable deals.
To assess the legitimacy of the FCA regulated consumer firms, you can ask for their authorisation details. You can validate the same online by rechecking credentials on FCA website.
Opt for Transparent Deals
A loan shark would always be reluctant to share details of loan agreement. They would share little or no paperwork. They could be averse even to share record of payments. You should be careful while dealing with loan partners who are more interested in verbal promises than proof for the same.
Do not hand over originals
In some of the horrifying cases related to loan shark atrocities, they demanded borrowers’ IDs such as passports, debit cards and driving licenses. By handing over your key documents, you could multiply your vulnerability. They can blackmail you for their ghastly loan recovery tricks.
Herein you must also know that it is completely illegal to lend without a license in the UK. When you deal with unscrupulous lenders posing as regulated lender, you invite several threats. Usually loan sharks bait you for low interest rate but they are never reliable. They can modify the rate of interest or extend charges at point in time during the duration of loan. In some cases they may refuse you to prepay loan or resort to intimidation for recovering the balance.
You must ensure the fate of your loan by dealing with an FCA regulated loan partner. An authorised broker could be a key to gateway full of available deals of your interest.