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

cazzy123

I wouldn't get too excited I am still waiting for my redress letter from the "apology" announced on 26th June I believe. I am due a payment but despite numerous calls they won't tell me how much or indeed when I will get the payment.

Thechief_2

I am in the same boat cazzy!!! How hard can it be??? It should have been sorted by now!!! Also now they have this to deal with how long more will it be??? Some people have already had theirs!!! I keep phoning and emailing and same crappy answer!!!

K0SS

So finally proof, that there is something called a free lunch.

cirith_ungol

Not sure if this was mentioned already, but Wonga seem to have amended their original statement and edited out the following line:

Wonga will be handling all elements of this process, regardless of whether or not your debt has been sold to a third party, whether you’ve entered into an individual voluntary arrangement or a debt management scheme.

Can't post links because I just signed up, but you can view the original using Google cache.

neverdespairgirl

I read the item on the MSE front page, then had a quick look at Wonga's own website, which says something rather different, I think:

For approximately 330,000 customers who are in arrears of 30 days plus as at 2 October 2014, AND who would not have received a loan if presented under our new affordability criteria, we have agreed to write off all outstanding debt

The MSE story appeared to say all customers in arrears of 30 days or more, but the Wonga website implies only some of them.

Either way, the idea that a third of a million people are in serious arrears to a loan shark like this - the mind boggles!

What sort of sums did they lend, on average, does anyone know?

Thrugelmir

neverdespairgirl wrote: »

to a loan shark like this

Loan sharks don't have public visibility. Far far worse than Wonga.

Correctly regulated companies such as Wonga do provide a useful service. Without the likes of Wonga. Then people would be driven to use loan sharks.

What's really required is further investment into establishing well funded credit unions.

Thechief_2

They are going to lose 35 million!!! Yet will have to wipe off 220 million!!! Does that tell you the ridiculous amounts of interest they charge??? Hence why this has all come about!!! Im amazed people actually think they are a good thing!!! They rip off desperate people end of and now theyve had their payback!!! But even now i bet theyll try to squirm there way out!!! As others have stated theyve already edited the message!!! The FCA really needs to be right on top of it!!!

Brains64

It'll be interesting to see if Wonga actually survive this because the options for it as a business after this look pretty bleak to me, can't say how bad because I don't know their exact amount of capital reserve they have (if any) but however much, they're still going to have a tough year ahead as a business I reckon, they're down scaling the whole company apparently, which kinda suggests to me that it's make or break for them, down scaling is always the last resort in business, no company ever wants to be seen doing that and will avoid it at all costs, extra especially as 'Wonga' had become such a well known brand albeit in an infamous sort of a way for some, no doubt they'll be restructuring with plenty of layoffs and it wouldn't surprise me if they were looking at Administration before the end of the year, that wouldn't necessarily mean they're finished, they could still survive that but it could mean someone else or another big company taking it over, maybe even changing the name.

Thrugelmir

Brains64 wrote: »

It'll be interesting to see if Wonga actually survive this because the options for it as a business after this look pretty bleak to me, can't say how bad because I don't know their exact amount of capital reserve they have (if any) but however much, they're still going to have a tough year ahead as a business I reckon, they're down scaling the whole company apparently, which kinda suggests to me that it's make or break for them, down scaling is always the last resort in business, no company ever wants to be seen doing that and will avoid it at all costs, extra especially as 'Wonga' had become such a well known brand albeit in an infamous sort of a way for some, no doubt they'll be restructuring with plenty of layoffs and it wouldn't surprise me if they were looking at Administration before the end of the year, that wouldn't necessarily mean they're finished, they could still survive that but it could mean someone else or another big company taking it over, maybe even changing the name.

No doubt a phoenix will rise from the ashes. Won't just be a change of name. Also a change of business culture.

boo_star

Thechief wrote: »

They are going to lose 35 million!!! Yet will have to wipe off 220 million!!! Does that tell you the ridiculous amounts of interest they charge??? Hence why this has all come about!!! Im amazed people actually think they are a good thing!!! They rip off desperate people end of and now theyve had their payback!!! But even now i bet theyll try to squirm there way out!!! As others have stated theyve already edited the message!!! The FCA really needs to be right on top of it!!!

That's not surprising really.

Their rates are high, this is hardly surprising. The fact that a large amount is the write-off is charges is also not surprising.

Would you also be surprised when a 20% bank loan over 5 years, if written off is a write off for nearly 150% of the capital?