London, 5th December, 2006: The loanmarket is abuzz with business as Christmas is just a couple of weeks away. Nearly 25% Brits are planning to take out personal loans for meeting Christmas expenses. The Citizens Advice Bureau (CAB) has issued a cautionary notice to loan seekers to be wary of lending institutions that ask for a hefty loan fee for processing of loan application.

Law enforcement officials are on high alert as many scam lending institutions try to take advantage of this situation by exploiting the borrowers. These lenders know that the borrowers require money fast and with minimum hassles during Christmas to give shape to their Christmas plans. They charge additional upfront fees for processing the loan applications quickly. However, they reject many of such applications on some pretext and keep the money.

According to a spokesperson of CAB, a borrower can claim his/her money back if a lender lends lesser money than what had been applied for or in case the loan seeker decides not to take the loan at all. In case the lender does not give back the money, customers can take the lender to court for the breach of your rights. The borrower also has the right to sue the lending company for making him/her incur losses for taking it to court.

ABOUT CITIZENS ADVICE BUREAU (CAB):
The Citizens Advice Bureau is a registered charity that helps people resolve their legal, money and other problems by providing free information and advice from over 3,000 locations, and by influencing policymakers.