Yes Loans under the OFT spotlight

Yes Loans is under the Office of Fair Trading (OFT) spotlight as a result of complaints from its loan customers.

Yes Loans specialises in loans for people with poor credit histories.

Many think that the company is a lender itself, not a loans or credit broker as it actually is.

As a broker, Yes Loans charges a referral fee – a fee for introducing a potential customer to a loan provider.

This referral fee is set according to the size of the loan.

However, under the Consumer Credit Act, if Yes Loans fails to find a loan for a customer then it should refund the referral fee.

It should also refund the fee if a customer pulls out of a loan application process.

Following investigation, the OFT has told Yes Loans that it must

• make it clear on all its advertising material and on its website that it offers credit brokerage services and charges a fee for arranging a loan
• pay referral fees refunds within 30 days
• ensure staff advise customers that they can cancel within 14 days and receive a refund

If the company doesn’t implement these changes within one month it could lead to a fine from the OFT.