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

tgroom57

Agree. Having the loan wiped is not going to inspire more responsible borrowing. If anything it'll encourage the opposite, with people hoping the same will happen with other payday lenders.

phoenix46 wrote: »

I wonder if as they are stating they shouldn't have leant to these 330,000 people, they will correct defaults placed on people's credit files as well.

Good point, but most likely these 330,000 already have defaults on their credit file. Not like another one is going to make a whole load of difference.

chanz4

Providents number is on the web if needed, I wonder why they never get abused like payday lenders.

I hope they tighten up, however I can see a lot of people going to foodbanks and bankrupt.

Peter333

Good news! Moneygrabbing scumbags; making massive profits out of peoples misery!

I hope they crash and burn. It'll serve them right for lending to people without checking if they have the ability to pay it back.

haras_nosirrah

those of you who have borrowed from payday lenders the question I would like to ask is why and what would you have done otherwise?

I know a lot of people are saying that they profit from others misery but if people have no food in the fridge, their kids are crying, the electricity meter is about to run out or they can't get the petrol to get to work then what alternative is there???

While these people should not have got into this mess if the lender of last resort is no longer lending then what will these people do? Those of you who have borrowed from payday loan companies - what would you have done had that payday loan not been available?

Bet 'big george' down the pub with his baseball bat is rubbing his hands in glee as the desperate will now knock on his door

Monkeyballs

Weirdly, I'm actually finding myself feeling a little bit bad for Wonga...

Sure, they're a Payday lender and payday loans in general are bad but out of all those in operation today they do actually seem to want to become a legitimate money lender and sort out the mistakes of their past unlike others out there.

So yes I accept that they may be doing it begrudgingly but will the FCA now turn to all other Payday lenders or is Wonga the white Elephant in the corner that is going to be held as example for the FCA to point at and say "we did this!"?

IMO defaults must stand, it's a failed credit agreement end of story. And while there will be those who say it's not fair, it's still a failed credit agreement and as someone else has already mentioned the majority will likely have several defaults so one more won't matter (I'm including myself in this statement).

I don't think that all previous loans should be looked into, ok perhaps those in the last 60 days or so but I don't see that this is going to be the next PPI refund personally.

One slight bug bear that I do have is that a few months back I repaid the balance of an outstanding loan while on a DMP (money which was gifted to me) so I'll lose out... Wahhh!!!

Maybe all debt should just be wiped out so we can all start again?

MB

Blackpool_Saver

Monkeyballs wrote: »

Weirdly, I'm actually finding myself feeling a little bit bad for Wonga...

Say what ????? :eek:

Once_bitten

To the people crowing about getting debts wiped. The reason this is happening is you should never have been loaned it in the first place. You will never ever get a credit from legitimate sources again

Monkeyballs

Blackpool_Saver wrote: »

Say what ????? :eek:

I know right!!! LOL Of all payday lenders I've used they've generally been the least sh*tty... Quickquid however...

MB

Monkeyballs

Once_bitten wrote: »

To the people crowing about getting debts wiped. The reason this is happening is you should never have been loaned it in the first place. You will never ever get a credit from legitimate sources again

No they shouldn't (including me), but yes they will... In time, after lessons have been learned.

MB

Monkeyballs

Just reading the BBC News article and saw this, this is the sort of person who gives others a bad name;

Case study: 'I lied to get a £120 Wonga loan for a holiday'

When Elliott needed money for a holiday, he turned to payday lender Wonga.

He needed £120 and says he didn't have a problem convincing them to lend him cash by saying he worked full-time.

But the 20-year-old admitted lying on his application and told BBC Newsbeat it was "too easy" to be accepted.

He's now likely to be one of 330,000 people whose debts will be written off after a ruling that Wonga lent money to people who couldn't repay it.

"My bank couldn't give me an overdraft or anything, and so I went to [Wonga]," he says.

He received his money and went on holiday, but a few weeks later he says the firm started calling him and he says they were "constant".

"They were ringing me every day," he says. "They were telling me how much I owe and that there was added interest."

Elliot says that a few months later he was being told his debt had risen to more then £800 and it began to affect his day-to-day life.

He says the amount of the debt was making him feel depressed and that he had "no idea" what he would have done if this ruling hadn't come.

In Elliott's opinion, the whole process is too simple and he wants payday lending to be banned.

"It's so easy to go online and get one that you don't really look at the small print and they don't really tell you that much," he says.

This got me annoyed as it's typical of some of the posts which appear on this site in which the small print isn't read and the person lied in the first place! Grrr... No mention about whether help was either asked for or offered! Grrr...

MB