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

CerealKiller

johndawgylt wrote: »

Thanks, but the original article states that everyone with a debt of more than 29 days in arrears will have it written off, not passed to debt collectors. Is this not the case now? It's worrying that no one else has heard anything and I've still not been contacted

I thought they said that if you are more than 29 days in arrears and would have failed their new affordability tests you will get you debt cancelled so it's not guaranteed everyone in arrears will get their debts cancelled.

I owe about £1440 to Wonga which I'm paying via a DMP and am hoping I will get the debt cancelled.

Even if I don't get it cancelled, I won't be upset as I got myself into this problem, but will be ecstatic if it is cancelled as it will wipe out 14 months of my DMP. I believe I will get it cancelled, but not getting my hopes up. It does make me wonder if other pay day lenders will also have to cancel debts as I found it far to easy to get other loans while struggling to pay back loans I already have. Wishful thinking to hope my other debts will also get cancelled I know, but as I have said, I won't be disappointed if it doesnt happen and I will continue to pay until told otherwise.

I too have not heard from Wonga yet about the matter and becoming impatient. I feel that if we don't hear back by Friday, it will be next week we will find out.

50Twuncle

It's the interest rate that gets me - some of these loan companies proudly advertise 3000% - I mean borrow £100 at 3000% - means a monthly payment of £250 for 12 months - how can that ever be right ?
I thought that something must happen - when 6 months ago. Wonga stopped displaying the APR on their adverts... I thought that, by law, any lender had to clearly state the APR ??
But why do the loans have to be written off - why cannot these loanees simply be expected to repay the loan, without any interest added ?

[Deleted User]

50Twuncle wrote: »

I mean borrow £100 at 3000% - means a monthly payment of £250 for 12 months - how can that ever be right ?

It's not.

It's about £137 for 30 days on Wonga, according to their site. And that's at an APR of almost 6000%.

Brains64

johndawgylt wrote: »

Thanks, but the original article states that everyone with a debt of more than 29 days in arrears will have it written off, not passed to debt collectors. Is this not the case now? It's worrying that no one else has heard anything and I've still not been contacted

Yes, although the original proposal was that if it has been considered a loan that you wouldn't have been given by them under their new rules and it's more than 29 days in arrears then it will be written off, otherwise they'll still expect repayment, of course the problem is that as we don't know exactly what criteria they and other PDL's used in the first place it's nigh on impossible to work it out for yourself as to whether you would have got it under this new stricter criteria so in theory you'll be at the mercy of theirs and the regulators judgement but I wouldn't worry too much because it's clearly such a mess, they'd have difficulty trying to work it out themselves, it's just not worth the headache so they'll probably find it administratively easier to just write them all off, or at least write most debts off and try to make a fresh start rather than painstakingly trying to work out who would have got a loan under the new standards and who wouldn't, I was just saying that in the worst case scenario where they don't write it off and try to chase you for payment they would probably come a cropper anyway for the reasons I mentioned, cheers.

3guesses

Ahem... might I refer you to http://forums.moneysavingexpert.com/showpost.php?p=62713969&postcount=6

The way to combat payday loan companies and other irresponsible lenders is to make it REALLY EASY for borrowers to apply to have their debt written off by the courts if they cannot realistically afford the repayments. These poor lending (and borrowing) practices will only end when the lenders face the very real prospect of losing money for lending irresponsibly...

(Posted 2 August 2013)

3g

johndawgylt

Brains64 wrote: »

Yes, although the original proposal was that if it has been considered a loan that you wouldn't have been given by them under their new rules and it's more than 29 days in arrears then it will be written off, otherwise they'll still expect repayment, of course the problem is that as we don't know exactly what criteria they and other PDL's used in the first place it's nigh on impossible to work it out for yourself as to whether you would have got it under this new stricter criteria so in theory you'll be at the mercy of theirs and the regulators judgement but I wouldn't worry too much because it's clearly such a mess, they'd have difficulty trying to work it out themselves, it's just not worth the headache so they'll probably find it administratively easier to just write them all off, or at least write most debts off and try to make a fresh start rather than painstakingly trying to work out who would have got a loan under the new standards and who wouldn't, I was just saying that in the worst case scenario where they don't write it off and try to chase you for payment they would probably come a cropper anyway for the reasons I mentioned, cheers.

Nice one, well fingers crossed!

redhead57

I think out of all the loan providers out there Wonga was the best for me. my only problem is now. I initially took out a loan in June and up until it hit the news I was showing on their site as 90 + days in arrears. since it hit the news I now showing up as 10 days in arrears. so to me the way out for Wonga in order not to wipe the debt is to alter the arrangement details on peoples accounts. what to do now.

CerealKiller

redhead57 wrote: »

I think out of all the loan providers out there Wonga was the best for me. my only problem is now. I initially took out a loan in June and up until it hit the news I was showing on their site as 90 + days in arrears. since it hit the news I now showing up as 10 days in arrears. so to me the way out for Wonga in order not to wipe the debt is to alter the arrangement details on peoples accounts. what to do now.

I just checked mine and says 200+ days in arrears, maybe best to contact them and ask?
Although, unless I made a mistake on my DMP, the money I owe according to Wonga is £400 less than what myDMP says. Possibly an oversight on my behalf though (although I have recently double checked balances)

Monkeyballs

Or you've had interest and charges removed only... Give it another couple of days to hear from them and then maybe follow up

MB

CerealKiller

Monkeyballs wrote: »

Or you've had interest and charges removed only... Give it another couple of days to hear from them and then maybe follow up

MB

That is a possibility but I am over 29 days in arrears so should only be considered for full debt cancellation. Unless they are taking away charges first then removing the whole debt.
Hopefully we might all get some emails/letters soon.