Although he was told he would be able to get a loan of up to £1000, he decided he required a loan for £300.

Mr Burton was told by the company there was a fee of £49.50 to pay, but he decided it was worth paying to get the extra cash. Now, three weeks later, he says he has been told a loan guarantee he cannot provide is needed.

Mr Burton also said he was told he would not get his £49.50 fee back, although a spokesperson for Advantage Loans says they informed Mr Burton he would receive a refund if he wrote to the company.

Mr Burton said, “A leaflet about the loans the company was offering was pushed through my door about three weeks ago. It said the company guaranteed a loan of up to £1000 and I thought I could use some extra spending money over Christmas.

“When I contacted the company I was told there was a fee of £49.50 to pay, which was a lot of money, but I had £50 put aside for Christmas. I decided it was worth spending the £49.50 to get the £300 loan. The company then sent the application forms and then wrote again asking for my bank details.

“But now I’ve been told I need to provide a guarantee from a homeowner, or someone who works more than 12 hours a week, which I can not do as both me and my wife are disabled and unemployed.

“This was never mentioned to me before now and is not clear in the company’s literature. I feel this is something the company should have told me about when I first requested the loan — and before I’d paid the £49.50 fee.

“I said that I couldn’t provide the guarantee and so asked for my £49.50 back and was told that that was the company’s fee for searching for a loan, which they had done, and I would not be getting my money back.

“I was counting on getting this loan to buy presents. It looks like this year’s going to be a bleak Christmas.”

A spokesperson for Advantage Loans said, “It is not our procedure to mislead customers as to the nature of our service — which is to find the best loan available for the customer. We will be dealing with the member of staff concerned through our disciplinary procedures.”