It is with regret that we have been forced into charging a credit check fee (not an admin fee) for applicants of all our loans.
In July, the FCA (Financial Conduct Authority) launched new guidelines for the way that they expect lenders to run their businesses. They have also warned lenders about new rules starting in January 2015.
Due to this, lenders have reduced the number of loans they are approving and some are leaving the market altogether. This was expected by the FCA, in fact this is something they welcome.
Why does this mean application charges?
We didn't know what to expect after the changes by the FCA, most lenders expected a drop in the number of loans it would approve. That has proved to be correct.
One of the fallout symptoms that we never foresaw was the fact that those individuals who were being declined would go on a application rampage, where they are being declined for credit and then literally bouncing from one lender to another in the desperate hope of being approved by someone, anyone, and usually at any rate.
This is costing us a fortune, we have to pay for credit checks and we are seeing a massive increase in applications without any increase in income. This can't continue and we need to deter these people from applying as some kind of sport.
From September we will be charging a non refundable £6.99 for all credit applicants on this site. For those people who are approved, the money will be deducted from their first repayment instalment. Those who are declined would not be entitled to a refund.
We apologise to all applicants, approved or declined, this isn't of our doing. Customers should remember the scariest words to business "I'm from the Government and I'm here to help". Things always end up costing more, and here is - what we feel - another example of increased costs due to regulation.
Competition reduces costs - regulation increases them.