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

martiUK

do we know if other compainies are going to be doing the same because i found wonga easier to deal with than others , feel bit cheated at moment as did get in payday loan problems but by getting agreement with them and interested freezed now nearly at the end of it,surely if you took a loan out even with a payday loan you should at least pay back the amount you borred feel that this may make people go on same root with the hope this happens again and the get refund

Bantex_2

Think I may take on a couple of "lads" ans set up a proper loan sharking operation. i suspect with companies like Wonga etc tightening up on lending there will be plenty of business.

The odd broken bone and a few dead pets tends to focus a debtors mind a bit more than a default on a credit file and a snotty letter.

Just popping out to order the new Merc.

cifpower

thelionel2000 wrote: »

Ok so Wonga have admitted they have done wrong and they are refunding customers. But what about other companies that are in the market that have done the same are they going to be looked into as I am sure this is not just wonga doing this.

I am currently testing this as I speak.

My ex-housemate used to be the type to draw up a budget every month going forward several months but never stick to it. He would always ask for reassurance about his financial capabilities.

He has taken out payday loans in the past, paid them back and, of course, they increase his effective credit limit so he can borrow more. This is what he did until he started to rollover and then got stuck.

The company in question is MEM Capital.

I have complained on his behalf that the 3 outstanding loans should never have been made and if an accurate affordability check had been carried out they would have realised this. I have asked for the outstanding balances to be cleared and any defaults wiped from his file.

They replied this week saying they are looking further into it and will reply by middle of next month. Be interesting to see what they decide.

SMARTY31

CifPower,
Hi Cifpower i have a outstanding loan with MEM also approx £1000 may i be bold to asl for a copy of the template lettre that you sent. I will upadte as to any progress that i make.

kind regards and good luck:)

cifpower

SMARTY31 wrote: »

CifPower,
Hi Cifpower i have a outstanding loan with MEM also approx £1000 may i be bold to asl for a copy of the template lettre that you sent. I will upadte as to any progress that i make.

kind regards and good luck:)

Its very brief which is all it needs to be.

NAME
ADDRESS

DOB

Looking at my credit file I can see two defaults on behalf of MEM Consumer Finance.

Account number
fill this in
Account start date
fill this in
Opening balance
fill this in
Repayment frequency
Monthly
Date of default
01/11/2012
Default balance
£ 376

Account number
fill this in
Account start date
fill this in
Opening balance
fill this in
Repayment frequency
Monthly
Date of default
01/04/2014
Default balance
£ 523

I believe these loans should never have been issued due to affordability checks not being undertaken. As such, I would like to make a formal complaint. The resolution I would like to take place is as follows:

1. All outstanding debts cleared from the accounts
2. Both defaults expunged from my credit file.

I note that you are regulated by the Financial Conduct Authority and, in result of a deadlock letter being issued, I am able to refer this complaint to the Financial Ombudsman. I would appreciate it if you could send me full details of your complaints procedure.

Kind Regards

The loan info above was copied and pasted from the Noddle report which is free

This was e-mailed to [EMAIL="customer.relations@paydaycontact.co.uk"]customer.relations@paydaycontact.co.uk[/EMAIL]

SMARTY31

Thanks Cifpower much appreciated. Going to get my email sent within the hour. Will let all know how i get on.

Kind regards

bob_the_builder_3

Was told a refund would be received by the end of this month, I know we're not there yet, but has anyone actually received their money yet?

stevo45rico

I received an email from Wonga saying I was one of the 330,00. Which i'm obviously very pleased about as I fell into a financial nightmare in 2012/13. I defaulted but basically lied when applying for the loans because I was so desperate. I do not pride myself for doing this but in desperate times I had no other option.
What is concerning me now is that i checked my credit file at call credit and have noticed another payday loan company (Micro Credit AKA Quickquid) has increased my default debt from £422 when I defaulted 14 months ago to £962 last month> Is this legal? would I be able to challenge this as the debt has remained the same for 14 months then suddenly more than doubled! They have not even sent me a letter from the date of default, in fact I have had no contact what so ever with them since I missed my second payment and stopped my CPA. Any helpful advice would be most appreciated.

bbfc

I just had a call from Wonga today to say that they are refunding the £90 repayment plan payment I made on the 10th October, and they just wanted to confirm my account details! I am over the moon! Can I say thank you Wonga?

stevo45rico

Please be careful bbfc, from what i have heard there are some spam letters going around pretending to be wonga, i'm pretty sure no financial institutions ask for personal details via e-mail. I really hope this is not the case in this instance. Hope it all works out for you.