Credit crunch

The Citizens Advice Bureau website has the information you need before you sign up to anything. It tells you how to shop around for the best deal, how to compare the cost of credit deals, including APR, how to look out for additional costs such as arrangement fees and fees for late or missed payments and how to check you can afford the repayments.

What to do when a company has gone into administration? See advice from Citizens Advice.

Warning - Scam loan companies 

Watch out for loan companies who ask for upfront fees to find a loan for you but then fail to provide credit or offer totally unsuitable credit alternatives.

Be extra vigilant when dealing with or taking calls from loan companies that want upfront fees and who are not interested in your previous credit history. They may just take a fee and then disappear.

The Office of Fair Trading has seen a 50% rise in complaints about loan scams, particularly credit applications which involve the consumer sending upfront fees, sometimes via money transfer companies.

What to watch out for:

Be cautious of anyone cold calling offering a loan.

• Research the business - look for a landline phone number and a physical address. Ask for information in writing before committing yourself to anything.
• Check that the company has a credit licence via the Public Register: www.oft.gov.uk/consumercreditregister
• If you think you may be dealing with an unlicensed lender contact the Illegal Money Lending Team on 0300 555 2222 or email: reportaloanshark@stoploansharks.gov.uk

Support

If you are facing financial difficulties there are a number of agencies that may be able to help:

• Citizens Advice Bureau: http://www.citizensadvice.org.uk/
• National Debtline: 0808 808 4000 - http://www.nationaldebtline.co.uk/
• Debt Advice Network: 0800 138 1111 - http://www.debtadvicenetwork.org/