We have had to remove some of the responses to this question for legal reasons and will be monitoring any new responses added.
Loans Direct UK is not a direct lender but a membership service that charges an upfront fee of £59.75.
They are registered with the OFT and their Consumer Credit Licence number is 0628451. Their company registration number is 6907433.
Membership means they will try to match you with a suitable lender but it does not guarantee that you will be approved for a loan. Nor does it guarantee the amount you will be able to borrow or the interest rate you will be charged because Loans Direct UK don't carry out credit checks themselves.
If you have a query about your membership you should contact their customer service team on 0844 3091 936. Their call centre is open from 8am - 9pm Monday to Friday and 10am to 2pm on Saturdays.
If you wish to cancel your membership with Loans Direct UK you can do so within 14 days by writing to: LoansDirectUK.net, Office 8, 10 Buckhurst Road, Bexhill on Sea, East Sussex, TN40 1QF.
We put some of our members' concerns to Loans Direct UK and they responded as follows:
1) Fees are taken out of customers' accounts without authorisation, using debit cards, the details of which are purportedly taken for identification or credit check purposes only.
Loans Direct response:
"Loans Direct UK Only charge fee to provide customers with a membership, this membership allows members to borrow money, save money and gives them access to our online and offline membership tools. We do not conduct identity or credit checks and are very clear in what our charge is for, a membership. It is made very clear on our home page, throughout the application process and on the payment page (where a customer's debit card details are collected) that the membership fee of £59.75 will be debited when we have established that we have lenders who can make a loan offer to the customer."
2) Payment of fees is taken though loans are offered for an amount, which is below the amount needed and requested by customers.
"Loans Direct UK is not a lender, nor does it ever make out it is the lender, we are a membership service and will only make recommendation to our members and provide them with the online and offline tools to assist them in their loan search. The amount a lender lends and the rate at which they lend is between the lender and the member. WE DO NOT GUARANTEE ANY AMOUNTS, If a customer is not happy with the offer they've received from the lender they've been matched with all they need to do is simply contact us and we will find an alternative lender, update any new application information and if the customer is not satisfied with the service they've received they can request that the application is closed and that a refund is issued.
"We operate a completely independent service. We work for our customers."
3) Payment is taken though the customer has cancelled the request for a loan.
"We won't always receive feedback from a lender if a customer has requested to cancel their application directly with them. If a customer experiences difficulties in applying to their lender, changes their mind about applying for a loan or wishes to cancel their application for any reason, all they need to do is contact us directly and the application will be cancelled. Our telephone number is available throughout our site and is attached to all outbound correspondence via email, SMS and post.
"We run lengthened call centre hours of 8am to 9pm to help customers get hold of us outside of normal working hours.
"We can be reached on 08443091936 and are happy to discuss any member enquiries."
4) Loans Direct processes an application fee knowing that they will not be able find customers a suitable lender.
"If you have been asked to pay us a fee then congratulations we believe we can help you and at least one lender on our lender panel is willing to proceed with your application. The information customers provide to us is carefully analysed during the application, whether the application is made over the phone or online.
"If there are no available products or the client doesn't meet the criteria of at least one or more of our product providers, the application won't be accepted and the customer will NOT be charged."
5) Loans Direct offer customers loans from companies which have already rejected their application or which are unsuitable because no guarantor is able to guarantee the customer's loan application.
"We ask customers during the application process and in subsequent telephone, email and SMS communication to verify any lenders, with which they have existing borrowing, have already applied to or have been turned down by. It is made clear that it is vital that the customer answers this information accurately so that we can find the right loan for the customer first time and as quickly as possible. If a customer indicates that they have outstanding credit with a particular lender or have been refused credit with a provider, these companies are excluded from the search. If any customer receives a recommendation for a lender that they don't want to use for any reason, they can either decline it on their online account page or just call us and ask one of our telephone agents to do it for them. The customer will then be matched with the next best lender assessed against the customer's criteria.
"Guarantor products are growing in popularity as they can offer larger unsecured advances to a wide range of customers. Several guarantor loan products are available and are only offered to our customers if we have assessed that they are the best product available for them. If the customer does not wish to proceed with the lender that they've been matched with for any reason all they need to do is simply contact us and we will find an alternative lender for them."
6) Loans Direct operates a scam.
"We absolutely do not operate a scam and it is slanderous and libellous to suggest otherwise. We hold a consumer credit license that was issued by the Office of Fair Trading, we have a no quibble refund policy and we deliver a highly valued service to our large base of customer, many of whom come back to us many times to meet their financial needs. If a customer is not completely satisfied with the service they've received they simply need to contact us via phone or email to discuss. Queries of this nature will be dealt within 24 hours and response will be issued over the phone and confirmed in writing."
7) It is extremely difficult to obtain a refund from Loan Direct.
"We have a 100% refund policy for any customers who are unhappy with the service they have received. To discuss a refund with us you are simply required to contact us via phone (08443091936) or email (firstname.lastname@example.org). Our call centre is open Monday to Friday from 8am to 9pm and Saturday 10am to 2pm, we do our best to deal with all refund requests on the same day."
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