ASTL warns brokers over application fee scam

The Association of Short Term Lenders is warning brokers not to be duped by certain bridging lenders that are demanding non-refundable application fees and then dropping out of the deal.

Adrian Bloomfield, CEO of the ASTL, says: “It has been brought to our attention that there is an improper and dishonourable practice whereby firms appear to be charging applicants very substantial application fees in relation to short term loans that do not materialise.”

None of the members of the ASTL have been implicated in these allegations and no complaints have been made to the ASTL about any of its members.

Bloomfield says: “We wish to make it clear that the short term lending industry as represented by the ASTL condemns these sharp and dishonourable practices and our members wish to disassociate themselves from the companies against whom complaints and allegations have been made.

“We recommend that to safeguard the interest of their clients brokers should introduce loan applications only to lenders who they know are reputable and reliable.”

It advises brokers to only use bridging lenders that are members of the ASTL, which can be found on its website.