Broker/Finance Question.....Please Reply

[shellda]

Hi

I am new to this so please bare with me, We recently applied to a finance company called Wentworth Direct Finance for a consolidation loan.

We received a letter stating that our loan has been accepted by their underwriting department.

We had to send a fee of �49.00 to cover brokerage fees and the loan aproval form, as soon as they were received they would process the loan immediatly and the lending agent will be in touch.

I am worried after reading through many of the posts here that we may have been ripped off. This company has not been mentioned here and we went straight to the company direct and not through external ones like tenant loans ect...

How can I find out more about wentworth? Are there legit companies out there that do charge up front?

Also if it has been accepted by an underwriting department does this mean that we have definately got the loan?

Thanks!!!

[buildersmate]

If you are new to AB you might also be new to MoneySavingExpert - the website run by Martin Lewis who appears on Radio2 quite regularly. There is a forum section in his website which is another place it is quite useful to trawl for Money-related questions. Here is one such Q+A related to Wentworth.

http://forums.moneysavingexpert.com/showthread .html?t=47020

[Loosehead]

These firms essentially take arrangement fees from people who, because of bad credit, have to take this route. In the unlikely event you actually get a loan it's be at an astronimical rate.

Sorry bad the basic fact of life is that you cannot get a loan on sensible terms because of bad credit.

[yummymummy]

As I have posted before, brokers are entitled to charge a fee, but if you do not accept one of their loans (for whatever reason) within 6 months, they are only entitled to keep �5 of the fee and have to give the rest back.

With regard to Wentworth, just try a Google search and see if any complaints websites come up.

Unfortunately as loosehead says, you can't expect to get a fab rate if you credit isn't the best, but can try damage limitation by refusing the extortionate rates

[mojo57]

Credit Brokers are an alternative form of obtaining credit. Most people go to their bank. As they already know you they can process the loan quickly and can be more flexible. If you are refused then brokers such as Wentworth Direct Finance can be useful.

Before parting with cash you should first check the broker is Licensed by the Office of Fair Trading. You can call the OFT on 08454 040506. Wentworth's license number is 469755.

Before giving information you should check that they are registered under the Data Protection Act. Wentworth's license number is Z4969878, issued under Wentworth Direct Finance.

Even registration and licensing is no safeguard. You should check that the broker has been licensed for a period of time. The longer it is the more liklely they will have established links with more lenders. Wentworth Direct Finance has been licensed for over 10 years.

Brokers are legally permitted to make a charge for their service. The law says that if a broker cannot find you a loan within 6 months or you choose not to take a loan you are entitled to a refund. They still charge an administration fee, this is currently limited to �5.

Even lenders cannot tell you that you have definitely got the loan. Underwriters make loans not lenders, they can change their minds. In the case of brokered loans the lenders inform the broker's underwriting department what criteria they have for making the loan. If your data meets the criteria then the broker will accept your loan. Once agreed the broker can then pass your data to the lender, do not forget, the underwriter can still change their mind. This is rare, usually restricted to suspect fraud or changes in personal data.

You can arrange a loan yourself. If you do, be very careful not to make constant applications to lenders, they will make a credit search. Multiple searches result in an adverse credit rating. Ring the lender and ask