MSE News: Wonga busted by the FCA: 330,000 to have their loan wiped

cockbeard

Now I was unlucky in one sense, I've been in a weekly cycle of borrowing for the last four months, and they decided to take the payment back and when I went to take a new one it was declined. This left me in quite the pickle this last week. But obviously overall I'm glad to be out of it

They've kept lending to me every day after I've paid them back, and letting me extend the credit limit to get the money in the bank to pay the charges to extend the time constraint on the loan. It's ridiculous. Now I was never in arrears with them, but they have kept me in a cycle of this every week for the last four months or so. Does anybody know exactly what charges get refunded, and how far back?

I'm not here on the make, just although the loan was only seven days, it wasn't really seven days as it was a new loan to cover shortfall created by the previous loan. Also they must kinda recognise this else why be in touch if it needs to be peolpe who've been 30 days or longer

vicarondo

When did you recieve this?

cockbeard

I never had the generic email, just this one around half an hour ago

vicarondo

Nightmare isn't it. I was the same; every month, pay it back, then get another one, started at 200 and my last one was 1000. Worst time of my life, this was in March. I've paid 600 off but they still want 1045 off me. I'm really hoping i am one of them. I've learnt my lesson that's for sure. I don't know how it works in terms of refunds of what you've already paid

crispyballoon

The problem is, it's not just about being more than 30 days in arrears - it's about whether you would pass their new affordability criteria. You could be 500+ days in arrears (as I am) but if they consider you would still pass their new affordability criteria (whatever that is) and still lend to you, then you get nothing written off. Which is very frustrating because if you are that many days in arrears then you clearly couldn't afford it in the first place!

bilko89

cockbeard wrote: »

If you have already paid back your loan: The interest and fees of your loan will be automatically refunded by the end of October 2014. If you are experiencing financial difficulty, please call us and we will aim to have this refunded within 48 hours.
We are working with the relevant credit reference agencies to remove records relating to this loan from your credit report. We will make best endeavours to complete this in three to four weeks. This will be done automatically and there is no further action required from you.

This part intrigues me but it is too vague. As I read it, they are going to pay back all interest and fees from every loan you have ever taken with them. But surely that's not going to happen :eek:

vicarondo

That's it isn't it, we aren't being told what thier new criteria is. I never recieved the generic one so I'm thinking may be I'm one of the ones who won't be written off. (Even though they lent me £1000 on a monthly salary of £1200) dam!

crispyballoon

From MSE article 'Wonga busted':

As a result of the FCA's review, Wonga has today introduced a new 'lending criteria', which it will use before granting loans. The payday lender says it can't give too much information on what the new criteria is as it's "commercially sensitive", but it says it's scrutinising loan to income ratios.

So, they are working out who gets written off and who doesn't based on criteria that they aren't going to make public.

So how do we know if they're doing it correctly?

huntz

I owe £843.98 and 626 days in arrears. At the time had multiple payday loans and max out credit cards, there was no way I'd have been able to pay that back, my own stupid fault at the time I know, I was in a very bad place. Not had an email from them at all. Hope I do...

CerealKiller

Just had an email. My debt has been written off