Other credit brokers didn’t make it clear they would charge a fee for their services, or how much this would be.
And some took payments from consumers’ bank accounts without permission and without providing the service they had promised.
Often people were unaware they were actually signing up for a credit broking service.
They shared their bank details because they were told this was needed to confirm their identity or to allow the lender to make a credit check.
They did not realise money would be taken from their account.
Once people had given their personal details, some credit brokers would pass these on to other credit brokers, also without the customer’s knowledge or consent.
Customers would then find other firms had also charged fees.
In many cases, the customer had several fees taken from their account but did not end up with a loan.
When they complained, they often found it difficult to contact the firm, or were given excuses for why a refund could not be given – even though by law the customer was often entitled to their money back.
Some of these credit brokers were not registered with the Financial Conduct Authority (FCA) or were trading illegally under a different name.