The FCA has issued a strict warning against the use of a fake secured loans brokerage, after it was caught providing consumer services with no authorisation.
The Financial Conduct Authority (FCA) has issued a public warning over an organisation called Frenson Capital Limited, trading as Light Loans.
In a warning published on the website, The FCA said: “We believe this firm has been carrying out consumer credit activities in the UK without our authorisation. Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers.”
Picture: A screenshot of the website's secured loans section
Almost all firms and individuals carrying out consumer credit activities in the UK have to be authorised by the Financial Conduct Authority.
Issuing the warning, the FCA added: “However, some firms act without our authorisation. This firm is not authorised by us but has been targeting people in the UK:
“Frenson Capital Limited t/a Light Loans
“Website: www.lightloans.co.uk”
On the ‘Light Loans’ website it states: “At Lightloans, we specialise in finding loans and mortgages for people and making the process of applying as simple as possible. By comparing your requirements against our loan providers, we ensure that you are applying for the best loan or mortgage - whatever your circumstances.”
The site goes on to say that in the past few months, it has helped arrange over £497,129,633 in loans and mortgages.
Lightloans claims to source secured loans, unsecured loans, mortgages, remortgages and commercial loans.
The FCA strongly advises advisers to only deal with consumer credit firms that are authorised by the Regulator. One should also be aware that if you give money to an unauthorised firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.