Your Rights When Dealing with Loan Brokers

Why Loan Broker Rights Matter

Borrowing money is a serious commitment. The last thing you want is to be misled, charged unfair fees, or pressured into a loan that isn’t right for you.

That’s why the UK has clear loan broker rules overseen by the Financial Conduct Authority (FCA). These rules ensure:

• Customers are treated fairly
• Fees and commissions are transparent
• Data is protected and not misused
• Brokers act in your best interest

Knowing your rights gives you confidence, protects your finances, and ensures you only deal with FCA-approved loan sites.

What Is a Loan Broker?

A loan broker (also called a credit broker) is an intermediary that helps match borrowers with lenders.

• Brokers do not lend money themselves
• They typically work with a panel of lenders
• They may earn a commission from the lender if you take out a loan
• Some charge customers a fee (though this must be made clear upfront)

Result Loans, for example, is an FCA-authorised credit broker—meaning we connect borrowers with lenders safely and transparently.

Your Rights When Using a Loan Broker

When you use a loan broker in the UK, you are entitled to a series of protections. Here are the most important ones:

✅ Right to FCA Protection

All legitimate loan brokers must be authorised and regulated by the Financial Conduct Authority (FCA). This gives you legal protection if things go wrong.

✅ Right to Clear and Transparent Fees

Brokers must disclose:

• Whether they charge you a fee (many don’t)
• How much that fee will be
• When and how it is paid
• Whether they receive commission from lenders

✅ Right to Fair Treatment

The FCA’s “Treating Customers Fairly” principle requires brokers to:

• Provide honest, accurate information
• Avoid misleading advertising
• Match you with loans that suit your needs and circumstances

✅ Right to Data Protection

Your personal data must be handled securely under the UK GDPR and the Data Protection Act 2018. Brokers cannot sell your information to third parties without your consent.

✅ Right to Cancel

If you are charged a broker fee, you usually have a 14-day cooling-off period to cancel and receive a refund.

What Rules Must Loan Brokers Follow?

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The FCA has strict loan broker rules that protect consumers. These include:

• No upfront hidden charges – Any fees must be disclosed clearly.
• Transparency in commissions – If a broker earns money from a lender, you have the right to know.
• No misleading promotions – Ads and websites must be clear, not exaggerated or deceptive.
• Affordability considerations – Brokers must only connect you with lenders who carry out affordability checks.
• Complaint handling – All brokers must have a clear complaints procedure.

Spotting Red Flags with Loan Brokers

While most UK brokers follow the rules, some don’t. Watch out for:

🚩 Brokers asking for upfront payments before finding you a loan
🚩 “Guaranteed approval” claims (no broker can promise this)
🚩 Lack of FCA registration number on the website
🚩 Vague terms and conditions
🚩 Unsolicited calls, emails, or texts offering loans

If you see any of these, it’s best to walk away.

How Result Loans Protects Your Rights

As an FCA-regulated broker, Result Loans:

• Never charges upfront fees
• Only works with FCA-authorised lenders
• Uses soft credit checks to protect your score
• Provides transparent loan examples before you apply
• Follows strict data protection rules so your information is safe

Our mission is simple: to make borrowing safe, transparent, and stress-free.

What to Do if Your Rights Are Breached

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If you feel a broker has acted unfairly or broken the rules, you have options:

1. Complain directly to the broker
   • Every broker must have a written complaints policy.
   • They must respond within 8 weeks.
2. Escalate to the Financial Ombudsman Service (FOS)
   • If you’re unhappy with the broker’s response, you can take your case to the FOS.
   • This is a free service that resolves disputes between consumers and financial companies.
3. Report to the FCA
   • You can report misconduct directly to the FCA, who may investigate or take action.

FAQs: Loan Rights UK

💬 Can a broker charge me without telling me?
No. Any fee must be disclosed upfront, in writing, before you agree.

💬 Are brokers safer than going direct to a lender?
Yes—if they are FCA-regulated. Brokers can improve your chances of approval and prevent unnecessary hard credit searches.

💬 How do I check if a broker is legitimate?
Look up their name or reference number on the FCA Register.

💬 What happens if I can’t repay my loan?
That’s between you and the lender—but a responsible broker will only connect you with lenders who perform affordability checks.

Final Thoughts

Loan brokers can be an excellent way to find the right loan quickly, especially if you want to protect your credit score and compare multiple lenders.

But your safety and rights come first. In the UK, loan broker rules ensure you’re treated fairly, charged transparently, and fully protected under FCA oversight.

By choosing a trusted, FCA-approved broker like Result Loans, you can borrow with confidence, knowing your rights are always respected.