Wonga debt write off and other payday lenders

youknowthis123

Hi all,

Hope you're all doing well.

There's been lots of talk about Wonga's announcement last week however, I'm interested in what this may mean for other payday lenders. Will they likely follow suit with wiping their customers debt?

I know not everyone is thrilled about Wonga's decision, and I do understand why, as those who had managed to pay off their debts seem to have been forgotten, whereas those who have not are getting their debts cleared.

I have been £1k in debt with Wonga for almost 12 months, and am hoping I will be one of those included in the debt wiping, and if I am then obviously this would be a great relief and a great boost to my debt free journey (regardless of whether I deserve it or not).

My question is however, what does this mean for other lenders? I have read many reports stating that it is likely only the 3 main players in the payday loans industry will be able to stay in business once the new rules/caps are introduced in 2015. So if the rest of the lenders go out of business, what does this mean for those who owe them money? Will the debt be written off, or will the borrower still be required to payback in full, despite the business going under?

Thoughts welcome.

YKT

youknowthis123

just a thought this may be in the wrong forum, sorry if it is, but it is also related to my debt free journey.

Thanks,


YKT

Monkeyballs

Hi YKT,

Who knows... It's a nice idea I guess time will tell...

I had a loan with Wonga which I had been paying off by DMP and then made an F&F which was accepted a few months back (annoyingly lol) I refuse to hold a grudge against them though as it's history and that's where I'd rather it stay

I personally suspect that other lenders may follow suite or even sell their debts on to get out while the going is good...

Whatever happens, it is going to be an interesting 12 months or so coming up!

MB

EvolutionDFW

I received a surprising email this evening saying that my debt with Wonga has been wiped, almost £1K gone just like that. :j

Gives me that little bit more each month to put towards other debts.

youknowthis123

Great news! I also was contacted and have had 1k written off. I feel for those who don't benefit from this, but for my own debt free journey this is a huge boost!

Monkeyballs

Hi,

Sadly(lol) I repaid my Wonga loan but have seen copies of the letter sent and there is a section which mentions "if you have already repaid your loan...".

While I'm pleased for anyone having one less debt to sort out it is a bit painful to think about all the interest and charges paid over the years which would probably clear all my outstanding debts

Cest la vie!

MB

sourcrates

Not sure if Wonga's actions will be followed by other payday lenders, despite the reputation of the industry, Wonga are one of the better lenders in the market.
I suppose it depends if the FCA chooses to investigate the plethora of other lenders or not, some of whom are more shady than others.

Monkeyballs

They may not have any option if the FCA stamps their feet...

It's not something I'm going to start banking on though, while it seems harsh on Wonga it would also unfairly disadvantage them against their competition if other PDL's don't have to follow suit and really the FCA have opened the flood gates open to anyone who wants to complain against other lenders who are unlikely to have checked affordability before lending.

MB

youknowthis123

Thanks for the input guys.

I guess we need to see how this plays out before making any assumptions. My debt is 75% Pay Day loans, so if others were to follow suit it would change everything...maybe I'm just getting greedy!

Also, MonkeyBalls do you have payday loan debts? You could yet benefit from this situation!

YKT

Monkeyballs

Hi YKT,

I had a Wonga loan which I paid off (F&F settlement), as well as a Cheque Centre loan (which I paid off by F&F settlement and got a refund of interest and charges when I complained that I never got help when I asked and ridiculed in branch when I asked for help and admitted to having a gambling problem)...

I still have a loan outstanding with Moneyshop which I have put a complaint into the FOS about due to them never checking anything at all despite me telling them in branch that I had there PDL's and them offering me more credit despite being on a DMP with an outstanding balance...

I'd love to think that Wonga would start to review old loans with a view to refund the excessive interest but I can't see it happening and to be fair to them they were actually very helpful when I asked for help but thanks for asking

MB

sourcrates

I have had PDL`s in the past that I could not afford to repay, because of unforeseen circumstances, (wife left) the majority of them accepted my repayment offer straight away, all froze interest, and there were no charges either, some I repaid within a couple of months, others within 3-6 months.
I found once I had explained my situation to them, all were willing to listen, non of my debts were with Wonga though:o