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Wonga

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mw5cym
mw5cym Posts: 13 Forumite
Hi All,

I'm new to this so please be gentle with me.

I work as a self-employed taxi driver and I took out a payday loan with Wonga in October 2012 (Yes, stupid I know) with a payment promise date in November 2012. Three days before the payment promise date, My taxi was flooded in the nationally reported floods in North Wales.

I knew that I wouldn't be able to work and contacted Wonga immediately informing them of what happened. They were quite helpful actually and told me 'not to worry, they could set up a payment plan to help me'.

The payments as per the plan were made on time and the final payment was made this month. I received a 'thank you' message from Wonga inviting me to apply for another loan with them (don't worry, I wont!!!)

On checking my Experian credit report a few days ago, I find that they have hit me with a default! I have received no letters from them nor any default notices. My question is, can they legally do this? I thought under the Consumer Credit Act, they had to give you a warning and a chance to remedy?

Thank you in advance.

Comments

  • UsetheFORCE
    UsetheFORCE Posts: 688 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Wonga will normally give you 1,2,3,4,5,6, D so since it has only been 6 months since, I am surprised they have defaulted you, it should of been AP if you had a repayment arrangement.

    What date was it marked as a default btw?
    I have numerous qualifications in Business and Finance, Accountancy, Health and Safety and am now studying Law.

    Don't rely on anything I write as it may be wrong!!!
  • UsetheFORCE
    UsetheFORCE Posts: 688 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    No, they haven't broken the CCA Act, it is under Section 3, where they do not need to send you one as you are paying them back in less than 4 payments. Quote from:

    http://www.consumeractiongroup.co.uk/forum/showthread.php?345082-Quick-qiud-Mackenzie-hall-Default-notices-please-help/page2

    and link to the CCA...


    http://www.legislation.gov.uk/ukpga/2006/14/schedule/3


    I am not sure if this is the relevant bit, hopefully someone else will confirm...
    I have numerous qualifications in Business and Finance, Accountancy, Health and Safety and am now studying Law.

    Don't rely on anything I write as it may be wrong!!!
  • Apples2
    Apples2 Posts: 6,442 Forumite
    Are you sure it is a default on your file?

    It is right and proper you have incurred a negative impact as you failed to repay on time. It doesn't matter that it was an amicable agreement, the facts still stand.

    The presence of the payday loan on your file would not look good to a future creditor anyway, even if it had been paid on time.
  • mw5cym
    mw5cym Posts: 13 Forumite
    Default dated the 21 April 2013

    Yes it is a default! :-(

    Thanks both
  • mw5cym
    mw5cym Posts: 13 Forumite
    I even asked them if the payment plan would affect my credit file and they said it wouldn't! I went for the payment plan relying on that statement. I am aware of Hedley Byrne v Heller and Partners and have written to them stating that their statements caused the default and is therefore unfair!
  • Experian_company_representative
    Experian_company_representative Posts: 2,134 Organisation Representative
    Part of the Furniture Combo Breaker
    [FONT=&quot]If you disagree with anything on your Experian credit report you can ask us to raise a dispute with the lender on your behalf. Easiest way to do this is by using our online query form. You can also add your own statement to your report, called a notice of correction, which gives you the opportunity to voice your side of the story.

    James Jones

    [/FONT]
    Official Company Representative
    I am an official company representative of Experian. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"

    Posts by James Jones, Neil Stone, Stuart Storey & Joe Standen
  • mw5cym
    mw5cym Posts: 13 Forumite
    Hi all,

    Thank you for the replies. James, I have written to Wonga inviting them to remove default. After all, but for their statement, the default would not have happened.

    I await their reply.
  • mw5cym
    mw5cym Posts: 13 Forumite
    Just spoken to them and it seems that they are unwilling to remove it. It could be argued that it's as if they are so quick to issue a default on a credit file to prevent someone obtaining money elsewhere thus forcing that person to be a return customer.
  • Apples2
    Apples2 Posts: 6,442 Forumite
    Could also be argued they are using your credit file to warn any other potential lenders to be careful as you didn't repay your loan on time. Even Wonga may not accept you next time, the thanks/invite email is probably a generic end of loan email.

    If you had a chance to remedy prior to a default, you could have used that money to clear it anyway.

    Any financial agreement is going to affect your credit file in one way or other.
    If you had conversed in writing and had a statement to say they would not default you, you could have gone riding into battle.
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