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.
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?