Administrations fees on a loan?

[justasking]

Hi, i have been offered an unsecure loan for �800 but they have said i have to pay an administration fee of �38 before i can get the loan, and i cannot pay this fee out of the loan, i have to pay it before. I have never heard of this before so can you tell me if this is a normal thing or if it sounds dodgy? Thanks.

[Ethel]

Be very careful - often you pay them the fee, then they tell you you haven't got the loan.

And you don't get the fee back

[factor-fiction]

There have been scams like this. I'd avoid them unless they are a high street respected financial services company you are sure you can trust. However a high street bank would just add any fee to the loan. So I think this is a scam.

[R1Geezer]

read it carefully, they are not lenders they are brokers who charge a fee for trying to get you a loan. The fact you are giving them the time of day means that your credit rating is poor, therefore no normal lender will lend. They will keep your �38 as their "admin" fee. Do not touch with a barge pole. These firms are con artists preying on the desperate with dodgy credit. If you need �800 use the reverse loan system it's very cheap and very effective.

[filthiestfis]

What is the "reverse loan" system?