Should I pay a fee of �49 for a loan?

[fed-up]

I have just been accepted for a loan from Churchwood but I have been told that I need to pay a fee of �49? Should I pay???

[Ethel]

If you are using this company you have an extremely poor credit rating, possibly some CCJs, and can't get a loan anywhere else.

What APR will you be paying? Have they guaranteed you will get the loan? If not, will they refund the �49 if you are unsuccessful>

[CheekyChops]

No! They call the �49 a finders fee but don't usually refund even if they can't find you a loan so you end up �50 out of pocket!

[fed-up]

I don't know what the APR is? They just said I had been successful but I would to pay a fee for them to process it.

[squarebear]

You got a loan but don't know what the APR is?!
You need to find this out immediatley otherwise how will you know how much you are paying back?

[plowter]

Is this a straightforward loan or is it a consolidation loan to pay off debts?

If it's a straightforward loan you could get a better deal by approaching your local credit union. Why pay a fee in addition to the the heavy interest you'll be charged?

If it's a consolidation loan don't pay off debts by taking out more credit. It would be better to discuss your financial situation with a money adviser at CAB (or similar local organisation). A CAB money adviser would be free of charge.

[spaced]

no wonder we have so many people in debt, when someone doesnt even ask what the APR is

[sukkie]

Hi Fed-up
Don't believe them, my son got caught by these brokers, they guarenteed a loan for a car he wanted to buy, he had to pay them �49 and never saw his loan or the �49.

[Loosehead]

As above, you have not got a loan, read the letter very carefully, the fee is for them to look for a loan for you, they will try and fail and keep your cash. Companies like this prey on people like yourself with poor credit rating. I'm afraid the only viable way for you and others with a duff credit rating is to use the much neglected "reverse loan" method! At least you asked here first and saved yourself getting conned.

[dolly pond]

fed-up, be careful!! it sounds dodgy!!! dont pay anyone to find u a loan,

ask yourself: wots the money for, do i really need it? how much am i paying in credit? how many years? etc.

save up if its something u dont need, or dont do it!!

[chelsea78]

this same thing happened to me i was asked to pay �49 and then another �50 and told me i was guarenteed to get a loan but i never did and when i asked for my money back as they didnt do what they promised they told me its non refundable, so be carefull

[fed-up]

I will take your advice and not bother. Thanks to everyone who answered.