4 December 2006
The Citizens Advice Bureau (CAB) has issued a warning to consumers not to be taken in by unscrupulous loan providers in the run up to festive season.
With presents, food, drink and travel arrangements all leading to additional spending at this time of year, it can be extremely temping to take out a small personal loan to help spread the cost of Christmas.
Unfortunately, several scam companies are aware of the desperation that can occur during advent and are offering faster application processes in return for an additional fee.
These are the companies the CAB is warning the public to steer clear of, as it has received complaints that some of these companies take the upfront application fee and then often reject the application while keeping the money.
A spokesperson for the CAB said: "Even if the company offers you the loan and you decide not to take it, or if you receive a loan and they give you less money than you asked for, you are entitled the money back.
"If you do not receive your money back this is a breach of your rights and you would be entitled to pursue the company and take them to court. You would also be able to pursue the company for the losses you incur for taking them to court," they added.
Make sure you know exactly what you're getting when you take out a personal loan. uSwitch.com will search all available providers and find the personal loan that works best for your circumstances. If you're new to borrowing money we have a range of articles on personal loans to help you and can offer help and advice every step of your comparison. Find a personal loan today.