Tony wanted to get a loan to go overseas to meet his fiancé’s family. He saw an ad in the local newspaper and decided to call them. He applied for the loan over the phone and the finance company asked for $370 pre-approval fee to be paid in to their bank account before they could process the application. Tony deposited the money and never heard from the company again. He did not get his loan money and was $370 out of pocket.
Tony called the company almost every day for two weeks, but no one answered the phone. He decided to call the Office of Fair Trading and lodge a complaint.
Next day Tony received a call from a Fair Trading investigator advising him they were taking on his case. And after a few months of investigation Tony got his $370 back with the help of the Fair Trading investigator.
Fair Trading warns there are a lot of predatory lenders that people have to be aware of. Their ads usually appear in newspapers in the classifieds section and say something like: “Need cash fast? Need a loan and have a bad credit history? No hassles loans.” Fair Trading suggests before taking up a loan call 13 32 20 for advice.