Why do bad credit loan companys charge upfront fees, is it legal?

In the uk by the way
Answer
It is legal unfortunately, but they have to state what the fees are in clear language and make this known to you before you take out the loan. the fees must also be included when the "charge for credit" figures are added up and the "apr" calculated so you get a true cost of the loan.some companies can charge up to 10% so shop around and see before you sign.best of luck