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

in Loans
104 replies 14.8K views
Wonga pressured 45,000 customers into repaying payday loans by sending letters from non-existent law firms chasing debt...
Read the full story:

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


Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
«13456711

Replies

  • SnowTigerSnowTiger Forumite
    4.5K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    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:
  • Wonga solicitors are real -- I met them

    marionettes_puppets-marionettes_string_puppets-image.jpg
  • edited 25 June 2014 at 1:27PM
    tell_it_how_it_istell_it_how_it_is Forumite
    551 Posts
    edited 25 June 2014 at 1:27PM
    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%. :)
    “In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing at all.” - Roosevelt
  • 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_WoodyClive_Woody Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Out of curiosity will the compensation be used to cover outstanding debt for the many borrowers who have defaulted?
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • Gaz83Gaz83 Forumite
    4K Posts
    ✭✭✭✭
    Hopefully the £50 will be taken off of any existing debt.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • rizla_kingrizla_king Forumite
    2.9K Posts
    ✭✭✭✭
    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.
    Still rolling rolling rolling...... :) <
    SIGNATURE - Not part of post
  • PincherPincher
    6.6K Posts
    ✭✭✭✭
    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.
  • AnthornAnthorn Forumite
    4.4K Posts
    ✭✭✭✭
    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_kingrizla_king Forumite
    2.9K Posts
    ✭✭✭✭
    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.
    Still rolling rolling rolling...... :) <
    SIGNATURE - Not part of post
This discussion has been closed.
Latest MSE News and Guides

Stoozing, sublets & summer sips

This week's MSE Forum highlights

MSE News

Martin Lewis quizzes Rishi Sunak

Watch the cost of living support Q&A here

Join the MSE Forum discussion

48 craft beers for £50 delivered

One-off bundle for newbies. Excludes Northern Ireland

MSE Deals