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

sexyshark

Welcome back!

You do not currently have a live loan.


Sorry - we're unable to offer you a loan at the moment

To improve the services we provide, we’re moving more than a million customer accounts to our brand new website.
Your account is currently being transferred, and it may be a number of weeks before the process is completed.

Unfortunately, we can’t process new applications until your account has been moved. We apologise for the inconvenience, and if you’d like us to send you an email as soon as your account is ready you can request it below.




this is what it is saying now for my loan summary so fingers crossed

excited_to_be_free

I had my loan written off and default removed from my credit file. I just logged into my account for the first time in ages to check it was all clear and I noticed that my 'Trust rating allows me to borrow £1000' Is this serious or a joke!? I experienced financial difficulty and had a rude awakening, am now with Stepchange and will never touch PDLs again, but I wonder if others might be tempted again!? Surely they should not allow people who've had their loans written off to be able to apply again! Thats irresponsible lending.

Monkeyballs

excited_to_be_free wrote: »

I had my loan written off and default removed from my credit file. I just logged into my account for the first time in ages to check it was all clear and I noticed that my 'Trust rating allows me to borrow £1000' Is this serious or a joke!? I experienced financial difficulty and had a rude awakening, am now with Stepchange and will never touch PDLs again, but I wonder if others might be tempted again!? Surely they should not allow people who've had their loans written off to be able to apply again! Thats irresponsible lending.

I recall seeing someone else saying this too (possibly on this thread but I'n not 100% sure) and when they applied(!!!) their application was rejected.

I suspect it's something that will just be a carry over from their old site/process in which anyone who has borrowed in the past is recognised as a customer with a zero balance and the site is pre-set to display that message.

MB

excited_to_be_free

Monkeyballs wrote: »

I recall seeing someone else saying this too (possibly on this thread but I'n not 100% sure) and when they applied(!!!) their application was rejected.

I suspect it's something that will just be a carry over from their old site/process in which anyone who has borrowed in the past is recognised as a customer with a zero balance and the site is pre-set to display that message.

MB

Ahh ok, if that's the case then that's good. Just thought that if someone was vulnerable, they could quite easily borrow more.

johndawgylt

Got my confirmation email that my debts been wiped. £950 odd, happy days!!

Brains64

Thrugelmir wrote: »

Even the FCA have said that there may only be a handful of lenders left after the imposition of the new rules. That's out of the 400 or so currently in the market.

So while there's good news currently. There's also bad news as obtaining short term finance is going to be a totally different proposition in the future.

Indeed, it's a bit of a double edged sword really.

sexyshark wrote: »

Welcome back!

You do not currently have a live loan.


Sorry - we're unable to offer you a loan at the moment

To improve the services we provide, we’re moving more than a million customer accounts to our brand new website.
Your account is currently being transferred, and it may be a number of weeks before the process is completed.

Unfortunately, we can’t process new applications until your account has been moved. We apologise for the inconvenience, and if you’d like us to send you an email as soon as your account is ready you can request it below.




this is what it is saying now for my loan summary so fingers crossed

Yes, this is what it has been saying up to very recently when they completed the new site, they're using the same browser which I thought they would, the good news is that you'll probably find that your debt has been written off, when it says 'you do not currently have a live loan' this means there is nothing outstanding on the system for your account, it should now be showing all clear and an 'invitation' to apply again but needless to say I wouldn't recommend it, besides, I don't think they would let any of us take out a loan with them again after all this, they'll have those records of those of us that they wiped the debt on I'm sure although they won't admit that because it might get them into even bigger legal issues with the FCA if they openly said that.

Brogden

Hi All,

My Wonga debt was sold to BCW / Gothia / Red Castle and for a while I paid them £20.00 per month. I was comfortable that Wonga would consider me 'affected' and arrange that the loan be wiped. Then I heard nothing when a lot of people received their email to advise their loan had been wiped. I called Wonga to be advised that if the loan was sold then it would not be wiped. I informed them this was totally unfair and sent letters of complaint to both the DCA and Wonga. The DCA wrote back to say they had marked the file 'no action' whilst the complaint was investigated and then Wonga emailed me to say they were looking into it.

Just a couple of days ago I received another email from Wonga to say that they were investigating the calculation of balances issue and would advise shortly if my balance had been correctly calculated or not. Whilst they said the balances may only be £5 'out' they did say that it made no difference whether the loan had been sold on or not.......a little inconsistency here I think !!

I would also say that when I complained, I sent copies of letters concerning the mortgage arrears and attachment of earnings for council tax which I had at the time of applying to and being accepted by Wonga. I am basically saying 'should you really have made a loan to somebody in this situation?'

I do not like playing these games and if I borrow then I expect to pay back.....good times or not. However, if there is a remediation plan then I expect it to be fair and I have to say at the moment Wonga's plan is just not fair and has been cobbled together to keep the cost within limit whilst making them appear to be super guys :mad: .......and at the same time 'buy' the troubled business a future!

The most heartening thing for me is Wonga's admission with words to the effect of 'in consultation with the FCA further remediation measures may be necessary......'

Will wait and see. Speaking of FCA/PDL troubles does anybody have a loan outstanding with CFO Lending?

All the best,

Brogden

Brains64

Brogden wrote: »

Hi All,

My Wonga debt was sold to BCW / Gothia / Red Castle and for a while I paid them £20.00 per month. I was comfortable that Wonga would consider me 'affected' and arrange that the loan be wiped. Then I heard nothing when a lot of people received their email to advise their loan had been wiped. I called Wonga to be advised that if the loan was sold then it would not be wiped. I informed them this was totally unfair and sent letters of complaint to both the DCA and Wonga. The DCA wrote back to say they had marked the file 'no action' whilst the complaint was investigated and then Wonga emailed me to say they were looking into it.

Just a couple of days ago I received another email from Wonga to say that they were investigating the calculation of balances issue and would advise shortly if my balance had been correctly calculated or not. Whilst they said the balances may only be £5 'out' they did say that it made no difference whether the loan had been sold on or not.......a little inconsistency here I think !!

I would also say that when I complained, I sent copies of letters concerning the mortgage arrears and attachment of earnings for council tax which I had at the time of applying to and being accepted by Wonga. I am basically saying 'should you really have made a loan to somebody in this situation?'

I do not like playing these games and if I borrow then I expect to pay back.....good times or not. However, if there is a remediation plan then I expect it to be fair and I have to say at the moment Wonga's plan is just not fair and has been cobbled together to keep the cost within limit whilst making them appear to be super guys :mad: .......and at the same time 'buy' the troubled business a future!

The most heartening thing for me is Wonga's admission with words to the effect of 'in consultation with the FCA further remediation measures may be necessary......'

Will wait and see. Speaking of FCA/PDL troubles does anybody have a loan outstanding with CFO Lending?

All the best,

Brogden

Hope that works out for you, it's sounding very promising :beer:, can I ask, just out of curiosity, this CFO Lending, are they a guarantor unsecured loan specialist or a payday lender or both??, because they seem to be advertising two different kinds of lending products, very confusing:think::think:, I presume they must have split departments doing both right?

Brogden

Brains64 wrote: »

Hope that works out for you, it's sounding very promising :beer:, can I ask, just out of curiosity, this CFO Lending, are they a guarantor unsecured loan specialist or a payday lender or both??, because they seem to be advertising two different kinds of lending products, very confusing:think::think:, I presume they must have split departments doing both right?

Sorry to take so long to reply.

CFO appear to offer both guarantor type loans and the PDL's we know and love !! At least they did - agreed with FCA to make no new loans for the last few months!

Brogden

fermi

http://www.bbc.co.uk/news/business-30538162

Payday lender Wonga will refund the fees and interest charged to a customer whose outstanding loan has already been written off.

In October, Wonga said it would cancel the debts of 330,000 customers after an investigation showed it had not carried out appropriate affordability checks.

One of those customers whose debt was written off has successfully claimed for charges to be cancelled too.
Ami Jarman, 24, from Hertfordshire, took her case to the ombudsman.

She had initially borrowed £100 to pay for a new car tyre but her debts soon spiralled.

"I was diagnosed with depression, which ultimately affected my work life, and my personal life," she said.

She was given loans worth £9,000 over four years, but said she ended up having to pay more than £11,000 after fees and charges were added.

"I should have been more aware of the fees and interest, but I also feel payday lenders should take more responsibility for themselves, and should not have lent me this money," she told BBC Radio 4's You and Yours.

'Relief'

Although her existing debt was wiped out by Wonga, she decided to take her case about fees to the Financial Ombudsman Service after calculating how much money she had repaid.

Wonga

Caroline Wayman, chief Executive of the Financial Ombudsman Service, who looked into Ms Jarman's case said there had been unfair treatment.

"Wonga are obliged to make sure loans are affordable, and that people are aware of the fees and charges," she said.

"The Financial Conduct Authority [regulator] has been taking steps to improve this area of the lending industry, but more work needs to be done."

The ombudsman's ruling has come as a relief to Ms Jarman, a hospital care assistant, who had been borrowing from the company and many other payday lenders since 2010.

"I've got about £4,000 still outstanding with other lenders, but since hearing from the ombudsman it feels like a huge weight off my shoulders," she said.

"It is not just for me. It shows that other people who possibly have more debt than me can get their money back too."

A Wonga spokesman said discussions with the Financial Ombudsman Service about Ms Jarman's case, and how much would be repaid, were ongoing.

"We are keen that any individual in difficulty contacts us and we will do everything to resolve the situation," he said.