Don’t Be Scammed By ‘Dodgy’ Loan Companies

Posted in 12 Month Loans, Loans for Bad Credit, News About Loans For People With Bad Credit, No Credit Check Loans

An investigative columnist from the Mirror newspaper, Andrew Penman went undercover and posed as a potential borrower making an online loan application with Purple Payday, and reported that he was scammed by the loan company. It was said that he made a single online loan application which in turn had him recieve a total of 361 spam e-mails, £108 charged to his credit card, piled up junk text messages which he described as ‘so many that my phone memory is full’ and 0 loans received.

The purpose of this investigation was to find if payday lending companies really deserved their well-known notorious reputation. He began with Purple Payday, owned by Quintessential Finance Group, which made a gross profit last financial year with almost a total of £8 million.

He claimed that The Purple Payday was not really a lender, ‘it just passes your details to other firms. One of them was 5MinuteMoney, which texted me with the offer of “quick cash within the hour”. 5MinuteMoney is not a lending company, he said, ‘After filling in more online forms I was passed to a third site, theloanline.com. “You have been Approved!” it gushed, requesting my credit card details.’

After that, he mentioned that he received a text message from LikeALoan with a message: “Bad Credit OK. Cash in 10 mins. 2 Easy Steps.” He said that he received no cash and LikeALoan passed all of his details to another third-party loan lender, Merlin Loan.

All of this was despite putting on the loan application that he was penniless and on benefits, he was still asked to pay a fee by one of the third party loan companies.

“Merlin Loan took £49.99 from my credit card and £58.98 was taken by an outfit I’d never heard of, the1loan.co.uk.” He said that he tried to reach all the companies mentioned, a spokesman for Quintessential Finance said that customers can opt out of third-party marketing, and added: “It is made absolutely clear that Purple Payday is not a lender on both the home page and prominently on other pages within the site.”

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