Wonga, Is this legal

stuartroberts

Hi All,

I am looking for a little advice, about 2 years ago my brother was loaned some money by wonga and stupidly didn't pay it back it was about £600.

After some hard consideration i decided to help him out and clear it so that he would not incur any more charges. Instead he paid me back over 6 months.

I called wonga up at the time and paid the loan off for him, and heard no more of it.


2 years on and it would seem my untrustworthy brother has used Wonga again, he does not yet know that i know he has used them.

They have taken £876 from my debit card and the halifax say they afe entitled to do it, fortunately i am able to pay my bills this month but my point is.

The Halifax say this is fair game as i have voluntarily given them my card details in the past.

I only gave them my card details in the past to pay the balance off on that one occasion on my brothers behalf.

As far as i was concerned that was the only authority i gave them.

I did not give them authority to add me as a future guarantor for my brother.

I have now been forced to open a new bank account and new debit card to prevent this awful company doing this again.

Can anyone please explain how it is legal for a company to take payment for a loan which isn't even in my name and that i have given no authority for them to take payment.

My brother is away at the moment so i don't wanna read the riot act on the phone but I know he doesnt h have a clue they have taken it from me instead.

It has left me incredibly short for Christmas and I am more angry with wonga at the mooment as surely this practice must be illigal.

help and advice please.

MrSilk

I know someone else on here would be able to give you more information then I can, however; from what I have read, when you provide Wonga with your debit card details, it somehow gives them the right to deduct funds willy nilly.

Someone please clarify!

meer53

There is an agreement between your brother and Wonga. Part of that agreement includes your debit card details.

By giving Wonga your card details you have given your authorisation for them to claim payments which are owed. It's not illegal. If i were you i'd be reading the riot act regardless of where my brother was.

stuartroberts

IF i do it over the phone, i will be avoided, so I am taking the element of surprise as my action.

Its wrong wrong wrong, even if its in their T&C surely then they have to tell you this at the outset when they take the one time payment, if not surly that is illegal. Never ever again If i ever did this again for anyone it would be on a pre pay card.


My gripe is surly there must be financial rules stating that you must be told/ informed about the T &C. Otherwise its theft by wonga surly and i could report them to the police.

fermi

stuartroberts wrote: »

As far as i was concerned that was the only authority i gave them.

If that was the only purpose you authorised payment on the card for, then yes, taking payment for a loan you made no agreement to make payment for would be an unfair practice.

The OFT highlighted this yesterday as one of the things they added to the OFT guidance that PDL companies and others should not do.

See: http://forums.moneysavingexpert.com/showpost.php?p=57369677&postcount=3

stuartroberts

thanks, should i go into the branch and complain instead?

fermi

Whichever way you complain, report it as an unauthorised transaction and require that you are refunded. Tell them that if they refuse then you will be taking the matter to the Financial Ombudsman.

If Wonga will talk to you regarding it, then do the same with them, but tell them you will also be reporting them to the OFT.

LannieDuck

meer53 wrote: »

There is an agreement between your brother and Wonga. Part of that agreement includes your debit card details.

By giving Wonga your card details you have given your authorisation for them to claim payments which are owed. It's not illegal. If i were you i'd be reading the riot act regardless of where my brother was.

But if that were true, then her brother could give anyone's card details, and Wonga could take whatever funds they wanted? :eek:

For Wonga to take money from the OP, there needs to be an agreement between the OP and Wonga... which there might have been for the first payment - was there any small print that you didn't read, OP?

Enfieldian

Wonga will not refund as they are following their own procedures, whether we like them or not.

Your bank will most likely claim that you willingly gave your card details, so no help from them.

The simplest course of action is that when your brother comes back you need to reclaim the money from him.

He must have known that the payment was due but probably doesn't remember that you helped him out in the past and is thinking he has got away without paying. Presumably the account he uses did not have enough money in to cover the repayment.

stuartroberts

My brother is an idiot, but really this is his private business not mine, especially at 26 yrs of age.

He will pay me back , thats one thing i know but it will probably take a while.

In the meantime i have probably saved him a fortune in charges from wonga, not that it matters coz he will only do it again and again anyway, and i need to be out of his loop.

glasgowsaver2011

stuartroberts wrote: »

My brother is an idiot, but really this is his private business not mine, especially at 26 yrs of age.

He will pay me back , thats one thing i know but it will probably take a while.

In the meantime i have probably saved him a fortune in charges from wonga, not that it matters coz he will only do it again and again anyway, and i need to be out of his loop.

You need to cancel that card NOW

Possibly even move to another bank