Wonga Default

helpme1111

Hi,

I took a loan out with Wonga in Feb last year for £1,096.
Was meant to pay back in March, but my card got lost and bank details changed, so payment failed.
I had some financial difficulty at the time, so couldn't pay back.
I received a letter and email on the 21st June saying if i do not pay back in full in 28 days a default will be issued. I immedeately set up a payment plan. My first installment was in July, then i had to make a payment every month until December. I found out I would be getting some money in September, so arranged with Wonga that I would pay off the balance then. I paid roughly £1600 on September 10th.
I had stuck to the payment plan and paid off early.
I then looked at my experian report and Wonga issued a defauly on the 21st June. When i set up the payment plan i was told no default would be added and when i paid the balance i was told no default was added.

I think the default should be removed.
Can someone please help?
I am trying to get a mortgage and i really think this is going to stop me.

Thanks

pcrosland

never use them again...

helpme1111

I know that! I haven't.
Just looking to get some advice on whether the default can be removed and i have valid reasons for the removal of it.
They are a nightmare to deal with and spoke to 4 diff people who all gace me diff reason why the default was added

gb12345

helpme1111 wrote: »

I know that! I haven't.
Just looking to get some advice on whether the default can be removed and i have valid reasons for the removal of it.
They are a nightmare to deal with and spoke to 4 diff people who all gace me diff reason why the default was added

Unfortunately, you didn't keep to your contract with Wonga, which was to pay them back the money in March. As you failed to pay them back in March, they are unfortunately within their rights to place a default on your credit history.

helpme1111

Even though they said in June that they haven't placed a default yet and then i arranged a payment plan. Once the payment plan was set up, they didn't explain that a default would be added.

On another note, i am looking to get a mortgage with my fiancee and she has a good credit history, i have had a few PDL in the last year and this default from June last year.
Would this stop us getting a mortgage?

DCFC79

It might do, there was a thread on here recently mortgage lenders and pdl's, have a look for it.

dotdash79

helpme1111 wrote: »

On another note, i am looking to get a mortgage with my fiancee and she has a good credit history, i have had a few PDL in the last year and this default from June last year.
Would this stop us getting a mortgage?

Some high street lenders won't consider you for a mortgage if you have a PDL on your credit file, never mind a default from one.

I would say any PDL in the last 12 months would send alarm bells to any underwriter.

Apples2

helpme1111 wrote: »

Was meant to pay back in March, but my card got lost and bank details changed, so payment failed.
I had some financial difficulty at the time, so couldn't pay back.

Crikey, when so many coincidences happen all at the same time you know the world is against you.

Simple facts; you signed up to a contract but failed to meet it.
By not repaying, you fell into arrears breaking the contract and defaulted on your loan.

This is all right and proper. Other lenders should be made aware of your history when looking at any new application for borrowing you submit (including mortgage).
This is the whole point of Credit Histories.

On the flipside, we had a Taxi driver here recently who had a similar but more believable turn of unfortunate events.
He did manage to plead with Wonga and successfully had his default removed.

pops5588

helpme1111 wrote: »

Even though they said in June that they haven't placed a default yet and then i arranged a payment plan. Once the payment plan was set up, they didn't explain that a default would be added.

On another note, i am looking to get a mortgage with my fiancee and she has a good credit history, i have had a few PDL in the last year and this default from June last year.
Would this stop us getting a mortgage?

Unfortunately it probably isn't best to take the word of a company that is set up purely to lure those who are in desperate and difficult situations into using their services and charging them even more for the privilege. If you have the time and the energy then its probably worth arguing your case and maybe they will remove it just to get rid of you if you pester enough

If it were me I would count myself lucky I'm out of the situation and would look to the future and how I can improve my situation going forward. Wishing you luck.

happycamel_2

I'm afraid the default is legitimate. I'd say have a serious think about whether you want to be responsible for paying back tens of thousands when you can't manage your finances well enough to avoid using a PDL let alone pay them back on time.

Owning a house isn't just being able to pay the council tax and mortgage you'll have unpredictable expenses too such as repairs. I'd say you would find everything less stressful and more manageable if you spend two years saving and managing your finances well before trying for a mortgage rather than fighting a legitimate default.

I read here lately "people who can't afford to save, can't afford to borrow". You can't afford a mortgage until you have saved enough to pay your regular expenses, have a house deposit and have emergency savings.

chewoot

I have had the same issue with Wonga although for a lot. I got caught in the wonga trap last year (lesson learned), and ended up owing over a £1000. Once I realised I was in trouble I contacted them and set up a payment.

No problem thanks for the call.......I was told, you can pay it back at £150 per month. I thought this was pretty fair.

I was checking my credit file every couple of months as I was in the process of buying a house and everything was ok, I saw wonga on there and every month the balance was reducing.

On 20th Feb I made the final payment and left a zero balance.

However on the 24th Feb wonga issued an 8 on my file and a default from the date a made the arrangement, this was without any sort of notice from them. This has now changed to satisfied but has trashed my credit file........

I to want to know how the hell they can do this without notice, my credit file shows the repayments onetime and I have never seen a single piece of paperwork from them........