mortgage refused due to wonga/payday loan

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gh4662
gh4662 Posts: 45 Forumite
in Credit file & ratings
HI despite having a well paid job and a clear credit record I have been turned down for a mortgage.

My mortgage adviser thinks it is because of two Wonga loans I took out early in the year as he said I exceed all the other criteria

At no point did Wonga make me aware that taking out a loan would adversly affect my credit rating, the only reference on their site is it being affected if the loan isn't repaid on time.

I have emailed Wonga a week ago to complain but have had no response.

Is there any way I can get the information removed from my Experian credit file as I believe Wonga should have made me aware of the impact, if I knew this then I would have found other means to find the finance.

Any one have the name and contact details for Wonga's Chief Exec?

Any ideas what I can do?
«1345

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  • notanewuser
    notanewuser Posts: 8,499 Forumite
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    Any payday loan showing on a credit report will spook mortgage lenders. Its nothing to do with wonga!
    Trying to be a man is a waste of a woman
  • gh4662
    gh4662 Posts: 45 Forumite
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    So are you saying that the lenders have no responsibility to make customers aware of the impact to their credit rating?

    Wonga make a big deal on their ads and website about transparency...
  • notanewuser
    notanewuser Posts: 8,499 Forumite
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    gh4662 wrote: »
    So are you saying that the lenders have no responsibility to make customers aware of the impact to their credit rating?

    Wonga make a big deal on their ads and website about transparency...

    The mortgage company wouldn't have liked it if you'd got a new credit card in January and racked up £10ks worth of debt on it either.

    Using payday loans are a red flag to mortgage companies who you are asking to trust you with tens/hundreds of thousands of pounds of their money.

    It's down to you to protect your credit report if you're planning to apply for a mortgage, not the loan companies (whose only interest is in making money).

    I suspect you won't get a mortgage anywhere this year with those PDLs on your report.
    Trying to be a man is a waste of a woman
  • You-kip
    You-kip Posts: 499 Forumite
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    gh4662 wrote: »
    So are you saying that the lenders have no responsibility to make customers aware of the impact to their credit rating?

    Wonga make a big deal on their ads and website about transparency...

    I don't think it takes the likes of Wonga to explain that taking out a Payday loan effects your ability for future credit as it should be pretty obvious from the start if youre a wonga borrower and you apply for future mortgages etc that you'll look very risk and you've struggled in the past with your current salary.
  • fermi
    fermi Posts: 40,546 Forumite
    First Anniversary First Post Combo Breaker Intrepid Forum Explorer
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    One take on it: http://www.experian.co.uk/consumer/questions/askjames246.html
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • gh4662
    gh4662 Posts: 45 Forumite
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    So how long does this stay on my file? 6 years?
  • notanewuser
    notanewuser Posts: 8,499 Forumite
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    gh4662 wrote: »
    So how long does this stay on my file? 6 years?

    Yep.

    ...........
    Trying to be a man is a waste of a woman
  • gh4662
    gh4662 Posts: 45 Forumite
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    You-kip wrote: »
    I don't think it takes the likes of Wonga to explain that taking out a Payday loan effects your ability for future credit as it should be pretty obvious from the start if youre a wonga borrower and you apply for future mortgages etc that you'll look very risk and you've struggled in the past with your current salary.

    Very easy to judge all Payday loan borrowers without knowing the facts.........
  • notanewuser
    notanewuser Posts: 8,499 Forumite
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    gh4662 wrote: »
    Very easy to judge all Payday loan borrowers without knowing the facts.........

    What are the facts?

    We don't know you - nor does the mortgage company. You say you have a good salary, but needed to use not 1 but 2 PDLs earlier in the year. Where were your savings? It screams to lenders that you can't manage your money and that you may not have a contingency fund for repairs etc if you do but a house.
    Trying to be a man is a waste of a woman
  • fermi
    fermi Posts: 40,546 Forumite
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    MSE article from last year --> http://www.moneysavingexpert.com/news/loans/2012/11/wonga-payday-loans-do-wonders-for-your-credit-rating

    and --> http://www.moneysavingexpert.com/news/mortgages/2012/07/a-payday-loan-could-cost-you-a-mortgage
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
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