CCJ Secured Loans

Beware of the legal loan sharks

You can tell a lot about a lender by the way it advertises its products, and while many firms offering CCJ secured loans are perfectly reputable there are a few companies who use the small print to hide massive administration fees and sky-high interest rates.

CCJ secured loans are widely advertised, especially in tabloid newspapers, but not all lenders are as responsible as they could be. Adverts that quote low interest rates often hide the Annual Percentage Rate (APR) – and for good reason. The interest rate isn't the same as the APR, because the latter reflects the total cost of borrowing including administration fees. You'll often find that firms offering CCJ secured loans will charge very hefty admin fees, which in many cases can be several hundred pounds or even more than a thousand pounds.
Because CCJ secured loans are usually sought by people who are in a financial mess, some lenders advertise very low interest rates that are only available to people who meet very strict criteria; the hope is that once you've applied, you'll be so chuffed that someone's willing to lend you money that you won't worry about a high interest rate or hefty admin charge. That's why it's essential to shop around: we'd recommend the excellent loan comparison service at This Is Money (www.thisismoney.co.uk), which you can use to find the best deals on CCJ secured loans.

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