Is The UK Secured Loan Bad Credit Market Safe?
How do I know I am not dealing with crooks?
The only way to know that your lender is truly reputable, and has been known to do good business in the past, is to talk to your adviser. A good adviser who is dealing with someone with bad credit will only use a good UK secured loan bad credit lender - it is as important for them to know you will get a good loan as it is for you. And there are plenty of good lenders out there, the UK secured loan bad credit market is thriving - every five minutes the UK debt market grows by £1m**, with the secured loan market growing by £7.8bn in November 2007 alone **.
Any problems you meet in the future could be the fault of your adviser's recommendations - because their job is to make sure that doesn't happen. In most cases, you can be sure your adviser is well versed in the UK secured loan bad credit market and has recommended a lender numerous times and knows they deliver what they promise. If you are dealing with a crook then so is your adviser - and that's not good for either of you.
Is the market safeguarded from sharks?
Yes, the UK secured loan bad credit market is one of the most rigorously scrutinised loan markets in the world. Secured loans fall under the UK Consumer Credit Act, a governmental act marshalled by the Office of Fair Trading that makes sure consumers are treated properly. If a lender mistreats you, you have the law behind you. Also, the Financial Services Authority, an official government department that controls all financial advisers in the UK, will regulate your adviser. Both these bodies have unearthed numerous wrong doings in the UK secured loan bad credit market, and will continue to do so for your protection.
There are also numerous trade bodies that have dealings in the UK secured loan bad credit industry - the Independent Mortgage Lenders' Association, Council of Mortgage Lenders, the Association of Independent Financial Advisers and the Association of Mortgage Intermediaries - all there to make sure everything is done right.
Just relax
Both your adviser and your lender have legal requirements to make sure the deal you get is the right one for you. In 2007, total consumer credit lending stood at £223bn**, and the UK secured loan bad credit sector is a big part of that business. That's a big industry that must be doing something right.
With a good adviser by your side you should be able to take advantage of the UK secured loan bad credit industry. With patience, sensible planning and good advice it can get you out of trouble and let you begin to breathe a little easier again.
** Data source: January 2008 statistics from credit charity Credit Action, www.creditaction.org.uk
