Hi all,

I feel it is necessary to re-iterate what conmankiller has posted and to clear up any misunderstanding regarding legislation, regulation and the advertising of personal loans and attempt to clarify the situation for everyone. I will then be locking this post.

The Financial Services Authority (FSA) do not regulate the selling of loans, credit cards, second-charge loans and occupational pension schemes. This is done through legislation such as the Consumer Credit Act 1974. Anyone with any issues regarding loans, credit cards and second-charge loans - and with the providers of these services - should speak to The Office of Fair Trading or contact ConsumerDirect on 0845 04 05 06 or you can visit their website by clicking here.

The OFT website states: The Consumer Credit Act 1974 requires most businesses that offer credit or lend money to consumers to be licensed by the OFT. This includes where credit is arranged to finance the purchase of goods or services. Licensing arrangements may also be required by debt collectors, debt advisors and businesses that offer goods for hire or leasing. Trading without a licensing arrangement is a criminal offence and can result in a fine and/or imprisonment.

When it comes to the advertising of financial services, non-broadcast advertisements are regulated by the Financial Services Authority and any complaints should be directed to them on. The Consumer Credit Act also applies to adverts for credit and this is enforced by your local Trading Standards department. To find your local Trading Standards department, click here. Issues with broadcast adverts should be taken up with the Office of Communications (Ofcom) or the Advertising Standards Authority.

Regarding brokerage fees for loans, the OFT states: The Consumer Credit Act limits a credit broker's charges to £5 if, following an introduction to a lender, an agreement is not signed within six months. If more than that has already been paid, brokers must refund the excess on request. This section of the Act ensures that brokers are only entitled to a nominal fee if they are unable to obtain credit or hire facilities at a price the consumer is prepared to pay.

You can find out more information by clicking here.

I hope that clarifies the situation and assists people's understanding of the issue.