mobilepone.jpgThis all began innocently enough and escalated into the recording of this loan sales call. A member of our UK office received an unsolicited text spam message on her mobile phone advertising a loan from NoWorriesLoans. So we were all sitting around and decided to call the number to see what they were offering.

The call connected to a call center in India and the guy said she was instantly qualified for £7,500 but he could not tell her what the interest rate or terms were until she applied. Strange? But the first call got cut short when she asked the loan representative what his name was and he actually said, in his best Indian accent, "John Smith." At that point we all lost it and started laughing so hard we had to call back.

John Smith, really, that's the best they can do on a fake name? John Smith.

After we wiped the tears from our eyes we called back and this time recorded the call. The total call was over 26 minutes but has been edited down by cutting out all the hold time and personal information.

Shocking

Creditors are always saying that the responsibility for taking out a loan rests with the consumer but when you listen to this call you will find the sales pitch and loan process to be very confusing. Answers to direct questions about the interest rate were not forthcoming and the details of the loan were confusing. I'm still trying to figure out what the loan specialist meant when she said they were not allowed to add charges to the loan but the loan had a £340 charge

Individual Voluntary Arrangement - IVA Problem

An IVA is a legally binding agreement between a consumer and their creditor that has been crafted by a licensed Insolvency Practitioner (IP) in an effort to satisfy the debt for a reduced amount with a binding agreement without bankruptcy.

When someone is in an IVA they have either agreed to not apply for any credit or to first seek the permission of their IVA supervisor. Not seeking permission could be considered a serious breech of the IVA and result in the failing of the IVA and potential bankrupting of the individual.

Despite repeated questions by the consumer about the ability to take out the loan while in an IVA you can hear the consumer misadvised over and over again that it is not a problem. If the average consumer relied upon the advice given about the loan and application for credit while in an IVA it could have some serious negative consequences for the consumer.

Call Winds Up With Recognized UK Lender

The sales process led to a major UK lender with millions of customers. What began as an unsolicited SMS text message that led to a call center in India, where personal information was asked for repeatedly, then led to a UK based and regulated lender. It's not like this lender is small or inexperienced, they are not. In fact they have millions of customers.

Lender Representative Offers Advice on How to Scam the System

The final loan representative even tells the consumer how to scam the system by getting two loans through different companies. So even though the caller is told she is only eligible for one £500 doorstep loan, the loan representative can run a second through another affiliated company to give the consumer a total of £1,000 that she should not be borrowing to begin with.

Click Button Below to Play Recording

Highlights of the Call

Can't give terms of loan until she applies.

  • 3:53 Licensed credit brokers.
  • 4:11 Qualification process.
  • 5:25 Get someone else to apply for you to get higher loan.
  • 6:02 Mobile number from marketing department.
  • 6:30 Meet John Williams.
  • 7:15 Supervisor acknowledges that first person was John Smith.
  • 8:30 What is a home service loan?
  • 9:50 Transfered to Loan Specialist with different company.
  • 10:45 Ask for National Insurance number.
  • 11:00 Asks again what the interest rate will be.
  • 11:34 Not allowed to add additional charges by law.
  • 11:45 183.2% Interest.
  • 12:00 Borrow 500 and have to repay 840 over 56 weeks.
  • 12:50 So what is the 340 charge for. Charge for the loan. "All loans have charges."
  • 13:40 Cash delivered to your door within 3 days.
  • 14:15 Helps to build up your credit rating.
  • 15:20 They are just a broker so they can tell you that but they aren't going to give you that.
  • 15:45 Man or woman from your area will come to your house to collect loan payments.
  • 16:28 Am I allowed to apply for credit when I am in an IVA.
  • 16:55 No need to tell spouse or IVA Supervisor.
  • 17:15 It's really hard to get in arrears with us.
  • 17:30 We don't need to tell anyone.
  • 18:18 Make ten payments and I can borrow more.
  • 18:53 Am I allowed to for credit while in an IVA? Never been told you can't.
  • 19:18 500 with 2 companies. Loan specialist tells applicant how to scam the system.

Stop Unsolicited Spam SMS Text Messages

There are a number of things you can do to fight unsolicited SMS spam messages. The UK Office of Communications (OFCOM) has an excellent FAQ web page all about how to opt out of unsolicited text messages and what to do if you keep getting them.

Individual subscribers who do not wish to receive unsolicited SMS text messages for direct marketing purposes can therefore register with the TPS.