I applied for a loan with yes loans and I've been accepted, but they want to send them a cheque for 49.50 for administration fees, then after they have recieved the cheque they will issue me my money within 4 to 5 days, shall i send them a cheque?
2006-11-09 20:44:58 · 27 answers · asked by Anonymous in Business & Finance ➔ Credit
Sounds like a con to me. A loan company should be able to cover their administration costs through the interest on your loan. I wouldn't go ahead with this if I were you.
2006-11-09 20:48:56 · answer #1 · answered by Mumof1 2 · 1⤊ 0⤋
Its not a con, a credit company has the right to apply an admin fee if they want to. Alot of companies, however, dont do this. Depending on the APR you have been offered its up to you wether you would like to pay it. Use a search engine to compare loans between companies. Not all of them will charge a fee and then decide if the APR quoted including the fee is a better offer than what other companies can give you.
2006-11-12 11:32:44 · answer #2 · answered by Laure 2 · 0⤊ 0⤋
I wouldnt say it was a scam as such but quite unproffesional. I would ask if they could add it to the loan or take it with the 1st months payment.
Higher interest rate loan companies do charge admin fees quite a lot so it may be worth looking at more reputable companies who 1) charge less interest 2) dont apply unnessasary fees.
2006-11-10 05:22:45 · answer #3 · answered by Sophia 2 · 0⤊ 0⤋
No it's not a con most brokers charge a fee for unsecured loans as they act as a clearing house for finance companies so all applications received by the finance house should meet their lending criteria.
The admin fee is the only fee the broker gets for handling this loan so isn't a con. You should never be charged an upfront fee for a secured loan though.
2006-11-11 04:09:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes Loans are a genuine firm, but they deal with the very bottom end of the market. If you can get a loan from somewhere else, it's likely to be a lot cheaper. If Yes Loans are the only people prepared to lend you money, it means that no-one else thinks you can afford the repayments - and you might like to consider whether they are right.
2006-11-10 04:56:42 · answer #5 · answered by Anonymous · 1⤊ 0⤋
It's probably just what they say...an administration fee... BUT..no way would I pay it...there are many places that you can get a loan nowadays although some have extortionate interest rates. Check out this link for The Motley Fool which is a very good, independent financial site. They will point you in the right direction for anything legitimate to do with money...I know it says FOOL but it isn't a wind up, truly!
http://www.fool.co.uk/?gclid=CM2PtO6YvIgCFSoMQgodFC3SiA
Good luck in sorting something out!
2006-11-10 04:56:17 · answer #6 · answered by sarch_uk 7 · 0⤊ 0⤋
in the legal sense of the word, a con being a deliberate attempt to get money from you by mis-leading you, then no its not because they have told you what they want and why they want it.
in the ethical sense of the word, a con being ripped off for no reason other than the fact they can, then yes it is because there are money lenders out there who will not charge you up front fees, but if you are apllying to someone like yes then the chances are the kind of lender who doesnt charge up front fees, would want to touch your credit histroy.
there are also lenders who charge afterpayment fees, but these tend to be in blood and broken knees when you miss a payment, again i wouldnt have thought you would want to go with these.
so although its unpalitable, its perfectly legal, its how they make their living, and if you want the loan, you is gonna have to pay the fee.
2006-11-10 07:37:17 · answer #7 · answered by alatoruk 5 · 0⤊ 0⤋
Not a con, per se, but - SO BAD!!!
Think about it - if they were going to take an administration fee, it would sure come out of or be added to the loan itself!
THIS IS ONE GODDAM HUGE RIP OFF!!!
If you've been accepted there, then go somewhere else and not pay the 50 notes!!!
2006-11-10 04:47:22 · answer #8 · answered by PETER G 3 · 1⤊ 0⤋
YES! I'd ask them for the loan up front and then tell them that you'll sign all the forms and pay the admin fee when you receive the money - in cash - preferably rolled up inside socks, in a laundry bag. The code-word is 'pink elephant' and they must deliver at 2am.....
2006-11-11 10:59:40 · answer #9 · answered by ticket2ride 2 · 0⤊ 0⤋
id check with the FSA first. See if they are a registered money lender. find out what they're head office address is. i used to work for A&L loans, and we didnt have any admin fee. They make enough money from the useless loan protection and the interest. You didnt go for the protected loan did you?
2006-11-10 04:52:22 · answer #10 · answered by JJ London 2 · 2⤊ 0⤋