Report Abuse

Report this review to the Review Centre Team

Here at Review Centre we work hard to make sure we are the best place on the internet for honest, unbiased consumer reviews - we are grateful for your help in keeping us that way!

876265

Why are you reporting this review?

If you represent this business why not claim your page by creating a Free Business Account where you will receive improved review monitoring functionality.


★☆☆☆☆

“My son rang them as he had run himself into trouble...”

Written on: 11/06/2010

My son rang them as he had run himself into trouble and wanted to consolidate his loans. He contacted Magic Loans and spoke to an adviser who offered him a loan giving him details on a reasonably attractive APR, a monthly repayment, and a total amount payable over a specified period. The adviser claimed that this loan could be set up very quickly following payment of their administrative fee of £69.99. It was not until the paperwork received from them did not quote any of the figures previously stated during the phone call, that we read the small print on the agreement form which stated that Magic Loans would attempt to arrange a loan from one of a number of lenders and would continue to provide this service for 6 months. Very different from
the arranged loan discussed on the phone.

My son is adamant that Magic Loan did not tell him that they were brokers, in fact, it was not until the paperwork came through that he realised this and Consumer Direct confirmed that Magic Loans had mis-sold him the loan. If you think that this has happened to you please call Consumer Direct as the chances are that your details will be passed on to Trading Standards for a possible criminal prosecution. The more people that call the better.

We also had problems getting through to them on the phone and wrote to cancel the application. If you contact the company before the end of 7 working days from receiving the paperwork then they have to cancel the application as this is down to Distance Selling Regulations, which is a legal obligation on the company and criminal charges may also be brought by Trading Standards for any breach. Please contact Consumer Direct for full advice.

If you do not, then they could hold the fee for 6 months but it then has to be refunded under the Consumer Credit Act. A charge of up to £5 may be made if you are offered a loan and accept it within the 6 months. No loan offered no fee. Ensure that you write/email if you cannot get through on the phone, they are required to answer communications.

Also make a complaint to the Office of Fair Trading who regulates the company giving them their consumer registration number. Trading Standards and Consumer Direct are the front of the Office of Fair Trading but a short email giving the basic facts will be recorded, no individual complaint will be investigated. If they receive a sufficient number of complaints then the company will be reviewed and may lose their licence.

I continually contacted them and spoke to a member of staff who assured me that he has a law degree and confirmed to me that all current relevant legislation was being followed, I personally disagreed as Consumer Direct would not have forwarded my complaint to Trading Standards if this was so. Eventually the full fee was refunded but it was an expensive and time-consuming procedure.

I was advised by their operations manager that the senior management cannot (I believe will not) offer compensation for my time and costs and am extremely disappointed as I believe both my son and myself were deliberately mislead.

I object to having to give the company 1*, there are no minus ones!