MSE News: Wonga to pay £2.6m after threatening borrowers with fake lawyers 25 June 2014 at 12:35PM in Loans 104 replies 14.8K views

Former_MSE_Helen

Wonga pressured 45,000 customers into repaying payday loans by sending letters from non-existent law firms chasing debt...

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Wonga to pay £2.6m after threatening borrowers with fake lawyers



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SnowTiger

Gosh! I thought most of the solicitors which appear to be used by lenders chasing bad debt were fake.

I guess Messrs Blair, Oliver and Scott really do exist. :rotfl:

Daza

Wonga solicitors are real -- I met them

tell_it_how_it_is

Wow, that is incredible. Personally I think such conduct should result in that company being shut down.

And if anyone hasn't received their compo within 30 days, they should be able to add on interest at 4000%.

Hanky_Panky

SnowTiger wrote: »

Gosh! I thought most of the solicitors which appear to be used by lenders chasing bad debt were fake.

I guess Messrs Blair, Oliver and Scott really do exist. :rotfl:

The company does exist - check companies house.

I think this is all a bit of a storm in a teacup - lenders have been 'escalating' to an 'external' company that really is internal for years now. I think the only mistake Wonga made in this instance is not actually setting up the company they were claiming to write from.

This statement from the FCA press release was interesting, 'use unfair debt collection practices which put customers under great pressure to make loan repayments that many could not afford.' In my experience the vast majority of people (not all) who receive letters from these supposed external agencies are ones who have not made any proper effort to contact the lender and come to an arrangement at all so just how does the lender know they can't afford the repayments ?

Clive_Woody

Out of curiosity will the compensation be used to cover outstanding debt for the many borrowers who have defaulted?

Gaz83

Hopefully the £50 will be taken off of any existing debt.

rizla_king

Clive_Woody wrote: »

Out of curiosity will the compensation be used to cover outstanding debt for the many borrowers who have defaulted?

Gaz83 wrote: »

Hopefully the £50 will be taken off of any existing debt.

Wonga have said it will be used to reduce any outstanding balance if there is one.

Pincher

The correct debt collection methodology is:

Go to the house of the borrower. Go on bended knees for days, and beg for your money back. Offer a big discount if they pay up.


I have been dreaming that my mortgage lender will give me a big discount to move my mortgage, which is a nice BOE+ tracker mortgage in my favour.

Anthorn

As reported on BBC News at least, Wonga have stated that they ceased the practice voluntarily 4 years ago so one wonders why it took that length of time to sort them out for compensation.

rizla_king

Because until recently it was the job of the OFT, who were about as much use as a chocolate fireguard.

FCA on the other hand is bashing some heads together since they took over in April.