The question is how could we avoid this broker fee? We need to get educated about the loan and the requirements and also about the lenders, we need to look into the websites and do a research on the payday loan lenders before applying for a loan for that we could intelligently use websites and get in touch directly with the lenders to avoid broker’s fee. But how could we check if the advert or the website that we are looking at or going to apply to is a direct lender or is it a broker? What we could do is to see that how long they say would the transaction take and what is their process, direct lenders take less time and do not forward our details to anyone. Thus to avoid the broker fee it is best to deal directly with the lender and not through brokers. The research that we would be doing would help us here in locating the direct lenders from the brokers. Thus one thing that we should keep in mind is that we need to look for direct lenders not brokers as brokers charge heavy fee and make our loans even more expensive.
Brokers came in with the introduction of payday loans with a guarantor. These loans were introduced around six years ago in the UK, the objective of such loans is to lower the Annual Percentage rate of interest (APR) on the payday loan, the concept of a guarantor payday loan came in, it is a concept same as a guarantor loan where the guarantor promises to pay if the borrower is unable to pay back, with this introduction of the guarantor, it has made it easier for people with low incomes and poor credit history to get the loan, whose loan would otherwise be rejected. With the guarantor coming in it has become much more probable to get the loan.
This is where the role of brokers comes in, they ensure you payday loans without a guarantor and thus they charge a broker’s fee for it, as they provide the service for you. Therefore to avoid such a fee you should directly contact the lender company and check if any other cost free alternatives available. The only solution to avoid broker’s fee is not to go them, otherwise they will charge and you will end up paying a huge amount just as fee which you could easily avoid.