Payday loan firm targeting hard-up Brits in Facebook groups charging up to 306% interest
Beeloans has been posing as individuals on Facebook to recommend users take out its loans of £100 to £5,000
STRUGGLING families are being warned to beware offers for cash on social networking sites after a payday loan broker has been targeting Facebook buy and sell groups.
Bee Loans has been posing as individuals on Facebook to recommend users take out loans of £100 to £5,000, which come with an eye-watering interest rate of 305.9 per cent APR.
After being contacted by The Sun, the broker has "paused" the use of such adverts saying it wasn't aware this was happening.
In one advert, which was spotted by Charlotte Burns who blogs at , someone commented in a local buying and selling group saying: "Whats chances of me getting a loan today. I need about £600 and I don't have good credit at all. Who'll deffo help plz [sic]".
What seems to be an individual then replies with the following: "Bee loans will do that amount for you they do loans for people with really bad credit.
"I had £800 last Christmas off them which really helped me out."
To which the original user responds: "Brilliant, I've just had a look for them on google is this the right website for them? ApplyNow.beeloans.co.uk/ #Ad"
The commenter then responds saying: "Yes, thats the right one, if you apply for that amount now it should be with you in the next couple of hours they're usually really quick."
To which the original poster replies: "Ok thanks for your help ill do that now x #sponsoredad"
It was only the inclusion of "#Ad" and "#sponsoredad" that raised Charlotte's suspicions.
And it seems Charlotte isn't alone. When she tweeted about the issue, someone else said they'd seen a similar thread on another local Facebook page.
Again, what looked like a discussion between two Facebook users also included the wording "#Ad" and "#sponsoredad" in messages.
Under the advertising watchdog's rules, adverts must be "obviously recognisable as such" - whether on social media or otherwise.
They don't have to necessarily include hashtags to say they're an ad, but the Advertising Standards Authority (ASA) does say that "the status of a tweet, blog, vlog, Instagram post or story should be clear".
How to claim a refund from payday lenders
YOU can claim compensation from a payday lender if the loan was unaffordable, even if you've finished paying it off.
If you think you are owed compensation, then then you should follow these steps from DebtCamel on how to claim.
1. Check if you were mis-sold the loan
Before a lender gives you a loan, they have to check whether you are able to pay it back.
For a payday loan to be affordable, you had to be able to pay it back the following month as well as pay your other bills and debts.
The loan was unaffordable if:
- you often rolled loans or borrowed again soon after repaying a loan;
- your loans from a lender were increasing in size;
- some repayments were late; or
- the loan was a significant part of your income.
Ask the lender for a copy of your loan details, like when you took it out and how much interest you paid.
Compare it to your bank statements from the time you took it out and work out if you would have been able to pay back the loan after you paid your bills.
2. Make a complaint
There are websites that will help you submit your complaint to the lender but beware that if you're successful they will take a cut of your compensation.
DebtHacker.co.uk is a completely free tool that will help you with the same process.
If you'd prefer to do it yourself then you should write a letter or email citing citing "unaffordable loans" and ask for a full refund of the interest and charges you paid, plus the 8 per cent Ombudsman interest on top.
Also ask for the loan to be removed from your credit record.
You can find letter templates in , and .
3. Go to the Ombudsman
If you haven't heard anything back from them after eight weeks then you should take the issue to the .
You should also contact them if your complaint is rejected, the refund is too low or they refuse to consider loans that are over six years old and have been sold to a debt collector.
In a statement, William Ellis Sinclair, which is behind both Beeloans and fellow short-term loan finding site Moolr, said: "Bee Loans is a trading style of William Ellis Sinclair (WES), an established finance broker.
"WES was made aware of an issue with adverts promoting Bee Loans, today 10th January 2019. These adverts were devised and run by an advertising affiliate, and do not appear to be in compliance with WES's advertising guidelines that affiliates must follow.
"We have therefore decided to take the action of pausing this type of advertising for the time being, pending a review."
Sara Williams, an adviser at charity Citizens Advice and a blogger at warns that short-term loans can "sting".
She wrote on Twitter: "Take the sting out of finding a loan" they say... then they quote a representative APR 305%. Ouch that stings".
Sara added: "It may be quick and easy to find a bad credit loan through Bee Loans but it could be long and hard to pay it off.
";If you are struggling with bills and debts, talk to your creditors about a payment arrangement or look at a free debt management plan - borrowing more just makes your situation harder next month."
If you already have dealings with Bee Loans be careful to ensure you're definitely speaking to the right company as the Financial Conduct Authority (FCA) has issued a warning about firms trying the clone the loan finder.
You can also make complaints about what you believe to be misleading adverts via the . The Sun will report Bee Loans' Facebook ads to the watchdog.
More on money
Millions may be due payday loan refunds with lenders being warned just last year about offering unaffordable loans.
We spoke to a Dad-of-two who got a £3,750 refund for a £600 payday loan he couldn’t afford.
Meanwhile, there's a new free tool that could help millions claim refunds from payday lenders for unaffordable loans.
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