Report: Suspicious Loan Practice Requiring R3 499 Upfront Fee

I recently app**** for a loan through this business and was initially relieved to hear that my application had been approved, especially considering that I am currently under debt review. However, what followed raised serious concerns about the legitimacy and ethical conduct of this lender.

Shortly after receiving the “approval,” I was informed that I would be required to pay an initiation fee of R3 499 upfront before the loan could be released. I questioned this immediately, as reputable lenders generally deduct such fees from the loan amount itself rather than requiring cash payments beforehand.

When I asked the consultant to explain why the payment had to be made in advance and could not simply be deducted from the loan, she responded vaguely, stating only that it was “company policy” and that I had the right to decline the offer. Her inability to provide clear assurance that the loan would indeed be paid out after the fee was made me even more uncomfortable. This interaction came across as evasive and raised significant red flags.

Furthermore, I was encouraged to check HelloPeter, where the consultant claimed there were no negative reviews. However, I am well aware that some companies write or manipulate their own positive reviews to mislead consumers. This only added to my scepticism.

In my view, demanding an exorbitant upfront fee of R3 499 before releasing a loan is highly questionable and not standard practice among legitimate lenders. I am submitting this report to caution others and to highlight what I believe to be a potentially predatory lending practice.