Wheres the money?

[Flex-Finance]

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The finance and loans market has obviously changed in the past 12 months but does anyone else see a looming problem? Lending depends on one party giving money to another. The problem is that the high profile companies on television and online are all brokers.

How many people on the street are aware of Yes loans, Norton Finance, Ocean etc? A lot I would bet but people are not aware these people arent the money men.

It seems to me an increasingly larger number of brokers chasing an increasingly larger number of customers to secure a rapidly shrinking amount of available credit! Its all very well having a shiny 200 seat call centre and getting thousands of applications a day but if the lenders don't have any cash to give out your business model is broken. If these brokers are in business to collect a £50 loan "application fee" but not actually be able to organise a loan then the OFT are going to make sure the public know that the broker is legally obliged to refund that fee (apart from £5).

Is this market going to suffer, along with debt management, from having ridiculously low barriers to entry?

*I don't actually expect any responses cause this post isn't selling leads, swinging handbags at competitors or boasting about my Indian call centre :cry *

[finvik]

good observation. infact the secured loan market is declining rapidly, with eight lenders having withdrawn from the market in the past twelve months. the market is indeed going to suffer.
Vik
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www.financialfreedomawaits.com

[JayFCF]

Its been horrible watching one sucessful company after another slowly but surely going down the drain :-(

Most brokers already do offer a full refund of fees to customers but for some bizarre reason only a small percentage atually bother to ask for them back.

The markets are changing but there is still bundles of cash to be made out of the finance industry you just need a slightly different perspective.

I wish you luck mate and sincerely hope you manage to battle on

James

ABC

[fizzbird]

How many people on the street are aware of Yes loans, Norton Finance, Ocean etc? A lot I would bet but people are not aware these people arent the money men.

As someone not at all involved in finance, that's an interesting point.
I don't suppose there will be too many tears when these type of companies go to the wall though. I, for one, shall not miss the constant advertising?