15th August 2013
Representative APR 2120 percent, financial adviser, you are having a laugh?
So Payday loans companies employ Financial Advisers, what next?
The following less than grammatically perfect post appeared in our LinkedIn group last week trying to start a discussion, it was taken down and a request sent not to post again.
“Payday loans Direct Deposit is specialised in arranging range of cash include a payday loans 1 hours, quick loans same day, debit card payday loans and payday loans for bad credit. Apply now and get cash deposited directly into your account today.
Experience
Financial Adviser Payday Loans Direct Deposit
December 2012 – Present (9 months)London, United Kingdom
Hello I am Greg Wadel from London UK. I am Financial Services Adviser. Arrange Services for Loans. All UK people apply with us and get cash need it same day hassle free. more information visit @ http://www.paydayloansdirectdeposit.co.uk
April 2012 – Present (1 year 5 months)
Hello I am Greg Wadel from London UK.I am Financial Services Adviser. Arrange a Services for Loans. All UK people apply with us and get cash need it same day hassle free. more information visit @ http://www.paydayloansdirectdeposit.co.uk
Payday loans are a creeping cancer in our society, money lending at extreme cost, in this case 2120% APR, to the most vulnerable, needy and less well off in society. It is an industry that is barely regulated, in this case solely by the OFT.
The Finance and Leasing Association (FLA), to whom one payday loan firm is affiliated, can also help to deal with complaints against that firm. Although of course this does not stop complaints from the 'ripped off' from any payday lender source going to the FOS first should the 'consumer' prefer.
This firm does not appear to be a lender, it says it is not a broker and there seems little reference about where to complain or who regulates them.
Given the workload of the FOS I was surprised to hear that this service, along with payday lenders (I guess that ‘service’ is the correct description) are not FCA regulated. This firm’s particular service does not appear to be on anyone’s radar.
It is even more alarming in a post RDR world that those working for such firms describe themselves as “Financial Adviser or Financial Services advisers”!
Greg Wadel is not alone. Here is a link to another who refer to themselves as a ‘Financial Adviser'.- someone called Raynor Plank who works at Fast Payday Loans
This is clearly blurring the lines and should be looked at very quickly.
Financial advisers are having a bad enough time in the reputation department being visited upon them by the regulator without this crude attempt at ‘passing off’ appearing from the ether.
It beggars belief that the FCA has not ingested firms operating in this fiscal ‘Wild West’ for regulation.
Clearly nothing has been learned and it is only when the thousands of consumers who take advantage of such services start to complain in volumes akin to PPI will the question be asked; “Why were these firms not regulated by the FCA”? And, why are we as an industry, paying for their mistakes?
Comments (5)
David Bartleet 16/08/2013 09:03
In fact, not one hour ago I received an invite from Tome Henry of Bad Credit Loans with a picture of an hour glass inviting me to connect.
LinkedIn don't like these people any more than we do as they are constantly spamming the system, but with two people a second joining LinkedIn, and over 225 Million members to date it is hard to police. However there is an option on the invitation page, when you click through from messages, to report spam - and that's what I do every time.
Please do not just decline, report them and LinkedIn will close their account when enough people report them as spam.
Regards
Lee Werrell Chartered FCSI FISMM Cert PFS
Compliance Doctor
CEI Compliance Limited
0800 6899689
Lee Werrell 16/08/2013 09:20
Various regulators do little or nothing about it.
To what has the World come?
Richard Brown 16/08/2013 10:56
The rates Wonga and Co. charge are not all unrealistic as they are lending relatively small amounts for a relatively short periods. Hence the fees for arranging such loans are high and by the way that APR is calculated you get these mad figures. It is the APR calculation methodology that is at fault.
Furthermore, there is absolutely no need at all to apply any further regulation. Regulation is never the solution. It is always the problem. In the case of payday lenders everyone is now aware of what they do and the costs, what could any form of regulation possibly add? All that would happen is that many would stop trading and would be replaced by loan sharks.
As a society we need to grow up and take responsibility and stop running to nanny at every opportunity.
Steven Farrall 16/08/2013 11:54
This term is not a protected by regulation 'brand' or 'trademark' but given the context it is being used in here, 'Financial Advisers' who have qualified by exam, post RDR, should not see their efforts to head toward professional status downgraded by the marketing activities of PDLC's and their brokers.
The term "Financial Adviser' post RDR should not be allowed to be used this way. Should the regulator move to stop it?
Derek Bradley 16/08/2013 15:51
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