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Wonga - Offered compensation
Hi,
Completely new to this forum so if this has been posted in the wrong place please let me know and I will change it.
I have recently looked into compensation due to taking out payday loans to cover pay day loans etc when I was an 18 year old apprentice (9 years ago). I got myself into serious debt due to this which took years to pay off with help from family members and my credit file is still in pieces now.
I followed the advice from a similar forum and sent an email to Wonga's complaints team detailing the loans I had when I was younger and the lasting effects they have had on my life. The total of the loans over 2 years of borrowing came to £11300.
Today I received a lengthy email regarding my complaint with an offer of £1357.56 which is the interest of 6 loans (I had taken around 50~ loans from them total).
I am looking for advice on whether I should accept their offer or if I should reject it in the hopes of claiming back more of the interest from other loans. If I were to reject their offer any advice on how to continue the case would be hugely appreciated.
James
Here is a copy of their email:
Dear Mr ******
Further to recent correspondence, we are writing to confirm that we have investigated your complaint and our findings are set out in more detail below.
Our understanding of your complaint
· You feel we should have noticed that your loans were unaffordable given your pattern of borrowing and the other information available to us.
· You stated the loan took a high amount of your wages and you had to borrow from other lenders.
· You would like a refund of interest and fees.
Our response
When investigating your complaint we can confirm that we have looked at all of your successful loan applications.
Information obtained at the point of loan:
We asked you a number of questions during any application including:
• Details of your salary, employment status, marital status, dependants, home ownership status, motor owner status, amongst other information.
This information was taken in good faith and at the point of each application we had no reason to believe the information you provided to us was not correct. As a result we relied on this information and it formed part of our assessment when determining the affordability of the loan.
Before approving a loan, we carry out a credit reference agency check. This information is accessed instantly by us when we receive a loan application.
Credit checks:
We undertook an independent credit check through internal system checks and a Credit Reference Bureau. This information was accessed instantly upon receipt of your loan application and our checks included:
• your credit score at the time of application,
• your employment status,
• whether you were currently insolvent,
• whether you had any outstanding loans with Wonga,
• whether historical accounts with us had been subject to a “Do not Relend” status,
• whether you had a previous loan which was written off due to outstanding arrears.
When considering the affordability of the loan, all the above factors were taken into account before your loan was approved.
Information about total cost
Our website and customer journey is designed to provide you with all the information you need to make an informed decision about whether our service is appropriate for you. The “sliders” on the homepage allowed you to work out:
· the total cost of the loan before you applied,
· the term that suited your needs,
· and was supported by all the documentation you needed to read before finalising your application.
We therefore believe that you were fully aware of the costs of a Wonga loan before applying.
Indication of Financial Difficulties:
In your recent complaint you suggested that you were experiencing financial difficulties and we should not have lent to you. As such we have considered your position at the time and have found evidence that you:
• fell into arrears with one of your loans
• took out a further loan immediately after repayment,
• borrowed high loan amounts when compared to your stated income.
You have suggested that we acted negligently when providing loans, however, the UK courts will not generally consider a claim of negligence if the event happened more than 6 years ago. The dispute resolution rules set by the Financial Conduct Authority also state that complaints cannot be considered by the Financial Ombudsman Service if the complaint is made about something that happened more than 6 years ago, or if later, more than 3 years from when the customer should have realised there was a problem.
Given the above, we do not consider it appropriate to investigate your complaint about the loans sold more than six years ago. Furthermore, as this complaint relates to loans being unaffordable, we think it should have been clear that the loans sold more than six years ago were unaffordable by the time these loan accounts were closed.
You have told us that you had to arrange additional borrowing to maintain your normal living expenses. If you are still experiencing financial difficulty, we would encourage you to get in contact with your lenders to discuss your circumstances with them.
However, having reviewed your complaint, we accept that the loans in the table below may not have been affordable given your circumstances.
Outcome
Based on the above, there may have been more that we could have done to assist you and so we have decided to uphold your complaint.
Additionally, we will also request for the redressed loans to be removed from your credit record. This may take up to 30 working days to be updated fully on your credit file.
We would like to offer £1357.56 which is an amount equal to the interest and fees on the following loans:
They listed details here of 6 loans from 2012
Interest of 8% simple per year has been added to the total redress for each loan from the date the loan was taken out until the date of calculation. Please see the outline below.
total interest and fees
£1,357.56
8% interest net
£504.13
total settlement
£1,861.69
tax
8% interest gross
£630.17
basic rate tax deduction
£126.03
Compensatory interest is subject to income tax at the basic rate under UK tax legislation and, therefore, tax will be deducted at the basic rate of 20% from any payments made to you. If you do not pay tax, you may be able to reclaim some or all of this tax reduction from HM Revenue and Customs.
If you are a higher rate or additional rate tax payer, you may have to pay additional tax on the compensatory interest via your tax return.
Please note the offer outlined in this letter is made in full and final settlement of all aspects of your complaint. If you wish to accept this offer, please reply to this email typing your details in to the relevant boxes of the acceptance form below. Alternatively, you can also print, fill and sign the below form and send it back by post or as an attachment in a reply to this email.
As we have migrated to a new system we no longer hold your previous bank account details. You will need to provide us with proof of your banking details. This can include a screenshot of your account statement, but will need to show your name, the sort code and account number. Please note: If you send us a picture of your current bank card as proof, the 16 digit card number must be completely covered in the picture provided.
You have the right to refer your complaint to the Financial Ombudsman Service, free of charge. The Ombudsman might not be able to consider your complaint if:
· what you’re complaining about happened more than six years ago, and
· you’re complaining more than three years after you realised (or should have realised) that there was a problem.
We think that your complaint was made outside of these time limits but this is a matter for the Ombudsman to decide. If the Ombudsman agrees with us, they will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances.
This is our final response, however if you are not satisfied with it, you have the right to refer your complaint to the Financial Ombudsman Service, free of charge but you must do so within six months of the date of this letter.
If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances.
The address of the Financial Ombudsman Service is:
The Financial Ombudsman Service
Exchange Tower
London
E14 9SR
Completely new to this forum so if this has been posted in the wrong place please let me know and I will change it.
I have recently looked into compensation due to taking out payday loans to cover pay day loans etc when I was an 18 year old apprentice (9 years ago). I got myself into serious debt due to this which took years to pay off with help from family members and my credit file is still in pieces now.
I followed the advice from a similar forum and sent an email to Wonga's complaints team detailing the loans I had when I was younger and the lasting effects they have had on my life. The total of the loans over 2 years of borrowing came to £11300.
Today I received a lengthy email regarding my complaint with an offer of £1357.56 which is the interest of 6 loans (I had taken around 50~ loans from them total).
I am looking for advice on whether I should accept their offer or if I should reject it in the hopes of claiming back more of the interest from other loans. If I were to reject their offer any advice on how to continue the case would be hugely appreciated.
James
Here is a copy of their email:
Dear Mr ******
Further to recent correspondence, we are writing to confirm that we have investigated your complaint and our findings are set out in more detail below.
Our understanding of your complaint
· You feel we should have noticed that your loans were unaffordable given your pattern of borrowing and the other information available to us.
· You stated the loan took a high amount of your wages and you had to borrow from other lenders.
· You would like a refund of interest and fees.
Our response
When investigating your complaint we can confirm that we have looked at all of your successful loan applications.
Information obtained at the point of loan:
We asked you a number of questions during any application including:
• Details of your salary, employment status, marital status, dependants, home ownership status, motor owner status, amongst other information.
This information was taken in good faith and at the point of each application we had no reason to believe the information you provided to us was not correct. As a result we relied on this information and it formed part of our assessment when determining the affordability of the loan.
Before approving a loan, we carry out a credit reference agency check. This information is accessed instantly by us when we receive a loan application.
Credit checks:
We undertook an independent credit check through internal system checks and a Credit Reference Bureau. This information was accessed instantly upon receipt of your loan application and our checks included:
• your credit score at the time of application,
• your employment status,
• whether you were currently insolvent,
• whether you had any outstanding loans with Wonga,
• whether historical accounts with us had been subject to a “Do not Relend” status,
• whether you had a previous loan which was written off due to outstanding arrears.
When considering the affordability of the loan, all the above factors were taken into account before your loan was approved.
Information about total cost
Our website and customer journey is designed to provide you with all the information you need to make an informed decision about whether our service is appropriate for you. The “sliders” on the homepage allowed you to work out:
· the total cost of the loan before you applied,
· the term that suited your needs,
· and was supported by all the documentation you needed to read before finalising your application.
We therefore believe that you were fully aware of the costs of a Wonga loan before applying.
Indication of Financial Difficulties:
In your recent complaint you suggested that you were experiencing financial difficulties and we should not have lent to you. As such we have considered your position at the time and have found evidence that you:
• fell into arrears with one of your loans
• took out a further loan immediately after repayment,
• borrowed high loan amounts when compared to your stated income.
You have suggested that we acted negligently when providing loans, however, the UK courts will not generally consider a claim of negligence if the event happened more than 6 years ago. The dispute resolution rules set by the Financial Conduct Authority also state that complaints cannot be considered by the Financial Ombudsman Service if the complaint is made about something that happened more than 6 years ago, or if later, more than 3 years from when the customer should have realised there was a problem.
Given the above, we do not consider it appropriate to investigate your complaint about the loans sold more than six years ago. Furthermore, as this complaint relates to loans being unaffordable, we think it should have been clear that the loans sold more than six years ago were unaffordable by the time these loan accounts were closed.
You have told us that you had to arrange additional borrowing to maintain your normal living expenses. If you are still experiencing financial difficulty, we would encourage you to get in contact with your lenders to discuss your circumstances with them.
However, having reviewed your complaint, we accept that the loans in the table below may not have been affordable given your circumstances.
Outcome
Based on the above, there may have been more that we could have done to assist you and so we have decided to uphold your complaint.
Additionally, we will also request for the redressed loans to be removed from your credit record. This may take up to 30 working days to be updated fully on your credit file.
We would like to offer £1357.56 which is an amount equal to the interest and fees on the following loans:
They listed details here of 6 loans from 2012
Interest of 8% simple per year has been added to the total redress for each loan from the date the loan was taken out until the date of calculation. Please see the outline below.
total interest and fees
£1,357.56
8% interest net
£504.13
total settlement
£1,861.69
tax
8% interest gross
£630.17
basic rate tax deduction
£126.03
Compensatory interest is subject to income tax at the basic rate under UK tax legislation and, therefore, tax will be deducted at the basic rate of 20% from any payments made to you. If you do not pay tax, you may be able to reclaim some or all of this tax reduction from HM Revenue and Customs.
If you are a higher rate or additional rate tax payer, you may have to pay additional tax on the compensatory interest via your tax return.
Please note the offer outlined in this letter is made in full and final settlement of all aspects of your complaint. If you wish to accept this offer, please reply to this email typing your details in to the relevant boxes of the acceptance form below. Alternatively, you can also print, fill and sign the below form and send it back by post or as an attachment in a reply to this email.
As we have migrated to a new system we no longer hold your previous bank account details. You will need to provide us with proof of your banking details. This can include a screenshot of your account statement, but will need to show your name, the sort code and account number. Please note: If you send us a picture of your current bank card as proof, the 16 digit card number must be completely covered in the picture provided.
You have the right to refer your complaint to the Financial Ombudsman Service, free of charge. The Ombudsman might not be able to consider your complaint if:
· what you’re complaining about happened more than six years ago, and
· you’re complaining more than three years after you realised (or should have realised) that there was a problem.
We think that your complaint was made outside of these time limits but this is a matter for the Ombudsman to decide. If the Ombudsman agrees with us, they will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances.
This is our final response, however if you are not satisfied with it, you have the right to refer your complaint to the Financial Ombudsman Service, free of charge but you must do so within six months of the date of this letter.
If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances.
The address of the Financial Ombudsman Service is:
The Financial Ombudsman Service
Exchange Tower
London
E14 9SR
0
Comments
-
I'd suggest grabbing what they've offered, which is probably a statutory calculation drawn up by the FCA, and getting on with a debt free life.
On what grounds would you challenge the amount offered?0 -
Seems a highly generous offer.0
-
It is a generous offer, especially as I was not expecting a reply to my complaint!
I have just read from previous posts that they offer a lower amount in hopes of people taking it and not challenging it.
In their email they mention that they will not include loans taken out more than 6 years ago, unsure of why they would do that0 -
It is a generous offer, especially as I was not expecting a reply to my complaint!
I have just read from previous posts that they offer a lower amount in hopes of people taking it and not challenging it.
In their email they mention that they will not include loans taken out more than 6 years ago, unsure of why they would do that
They won't consider loans take out more than 6 years ago as they are not legally obliged to. consumers wave the 6 year rule in lenders faces all the time and say 'if I haven't paid it for 6 years it is unenforcable and you won't get a penny out of me' - that swings both waysI am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
There's a clue in the letter they sent you.It is a generous offer, especially as I was not expecting a reply to my complaint!
I have just read from previous posts that they offer a lower amount in hopes of people taking it and not challenging it.
In their email they mention that they will not include loans taken out more than 6 years ago, unsure of why they would do thatThe dispute resolution rules set by the Financial Conduct Authority also state that complaints cannot be considered by the Financial Ombudsman Service if the complaint is made about something that happened more than 6 years ago0 -
Great outcome. Do you mind sharing the email you sent them? I've had quite a few with wonga and quickquid.0
-
Hi,
Completely new to this forum so if this has been posted in the wrong place please let me know and I will change it.
I have recently looked into compensation due to taking out payday loans to cover pay day loans etc when I was an 18 year old apprentice (9 years ago). I got myself into serious debt due to this which took years to pay off with help from family members and my credit file is still in pieces now.
I followed the advice from a similar forum and sent an email to Wonga's complaints team detailing the loans I had when I was younger and the lasting effects they have had on my life. The total of the loans over 2 years of borrowing came to £11300.
Today I received a lengthy email regarding my complaint with an offer of £1357.56 which is the interest of 6 loans (I had taken around 50~ loans from them total).
I am looking for advice on whether I should accept their offer or if I should reject it in the hopes of claiming back more of the interest from other loans. If I were to reject their offer any advice on how to continue the case would be hugely appreciated.
James
Here is a copy of their email:
Dear Mr ******
Further to recent correspondence, we are writing to confirm that we have investigated your complaint and our findings are set out in more detail below.
Our understanding of your complaint
· You feel we should have noticed that your loans were unaffordable given your pattern of borrowing and the other information available to us.
· You stated the loan took a high amount of your wages and you had to borrow from other lenders.
· You would like a refund of interest and fees.
Our response
When investigating your complaint we can confirm that we have looked at all of your successful loan applications.
Information obtained at the point of loan:
We asked you a number of questions during any application including:
• Details of your salary, employment status, marital status, dependants, home ownership status, motor owner status, amongst other information.
This information was taken in good faith and at the point of each application we had no reason to believe the information you provided to us was not correct. As a result we relied on this information and it formed part of our assessment when determining the affordability of the loan.
Before approving a loan, we carry out a credit reference agency check. This information is accessed instantly by us when we receive a loan application.
Credit checks:
We undertook an independent credit check through internal system checks and a Credit Reference Bureau. This information was accessed instantly upon receipt of your loan application and our checks included:
• your credit score at the time of application,
• your employment status,
• whether you were currently insolvent,
• whether you had any outstanding loans with Wonga,
• whether historical accounts with us had been subject to a “Do not Relend” status,
• whether you had a previous loan which was written off due to outstanding arrears.
When considering the affordability of the loan, all the above factors were taken into account before your loan was approved.
Information about total cost
Our website and customer journey is designed to provide you with all the information you need to make an informed decision about whether our service is appropriate for you. The “sliders” on the homepage allowed you to work out:
· the total cost of the loan before you applied,
· the term that suited your needs,
· and was supported by all the documentation you needed to read before finalising your application.
We therefore believe that you were fully aware of the costs of a Wonga loan before applying.
Indication of Financial Difficulties:
In your recent complaint you suggested that you were experiencing financial difficulties and we should not have lent to you. As such we have considered your position at the time and have found evidence that you:
• fell into arrears with one of your loans
• took out a further loan immediately after repayment,
• borrowed high loan amounts when compared to your stated income.
You have suggested that we acted negligently when providing loans, however, the UK courts will not generally consider a claim of negligence if the event happened more than 6 years ago. The dispute resolution rules set by the Financial Conduct Authority also state that complaints cannot be considered by the Financial Ombudsman Service if the complaint is made about something that happened more than 6 years ago, or if later, more than 3 years from when the customer should have realised there was a problem.
Given the above, we do not consider it appropriate to investigate your complaint about the loans sold more than six years ago. Furthermore, as this complaint relates to loans being unaffordable, we think it should have been clear that the loans sold more than six years ago were unaffordable by the time these loan accounts were closed.
You have told us that you had to arrange additional borrowing to maintain your normal living expenses. If you are still experiencing financial difficulty, we would encourage you to get in contact with your lenders to discuss your circumstances with them.
However, having reviewed your complaint, we accept that the loans in the table below may not have been affordable given your circumstances.
Outcome
Based on the above, there may have been more that we could have done to assist you and so we have decided to uphold your complaint.
Additionally, we will also request for the redressed loans to be removed from your credit record. This may take up to 30 working days to be updated fully on your credit file.
We would like to offer £1357.56 which is an amount equal to the interest and fees on the following loans:
They listed details here of 6 loans from 2012
Interest of 8% simple per year has been added to the total redress for each loan from the date the loan was taken out until the date of calculation. Please see the outline below.
total interest and fees
£1,357.56
8% interest net
£504.13
total settlement
£1,861.69
tax
8% interest gross
£630.17
basic rate tax deduction
£126.03
Compensatory interest is subject to income tax at the basic rate under UK tax legislation and, therefore, tax will be deducted at the basic rate of 20% from any payments made to you. If you do not pay tax, you may be able to reclaim some or all of this tax reduction from HM Revenue and Customs.
If you are a higher rate or additional rate tax payer, you may have to pay additional tax on the compensatory interest via your tax return.
Please note the offer outlined in this letter is made in full and final settlement of all aspects of your complaint. If you wish to accept this offer, please reply to this email typing your details in to the relevant boxes of the acceptance form below. Alternatively, you can also print, fill and sign the below form and send it back by post or as an attachment in a reply to this email.
As we have migrated to a new system we no longer hold your previous bank account details. You will need to provide us with proof of your banking details. This can include a screenshot of your account statement, but will need to show your name, the sort code and account number. Please note: If you send us a picture of your current bank card as proof, the 16 digit card number must be completely covered in the picture provided.
You have the right to refer your complaint to the Financial Ombudsman Service, free of charge. The Ombudsman might not be able to consider your complaint if:
· what you’re complaining about happened more than six years ago, and
· you’re complaining more than three years after you realised (or should have realised) that there was a problem.
We think that your complaint was made outside of these time limits but this is a matter for the Ombudsman to decide. If the Ombudsman agrees with us, they will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances.
This is our final response, however if you are not satisfied with it, you have the right to refer your complaint to the Financial Ombudsman Service, free of charge but you must do so within six months of the date of this letter.
If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances.
The address of the Financial Ombudsman Service is:
The Financial Ombudsman Service
Exchange Tower
London
E14 9SR
Dear Sir,
Please extend your hand so I can bite it off.
Yours faithfully,0 -
debtcamel . co .uk /payday-loan-refunds/Great outcome. Do you mind sharing the email you sent them? I've had quite a few with wonga and quickquid.
Take a look at that link, I just followed their steps and used their template letter.
Thanks guys, I think I will follow your advice and take their offer. A welcome surprise straight after Christmas.0 -
debtcamel . co .uk /payday-loan-refunds/
Take a look at that link, I just followed their steps and used their template letter.
Thanks guys, I think I will follow your advice and take their offer. A welcome surprise straight after Christmas.
All you can reclaim is interest and charges, plus statutory interest @ 8% so the offer will not increase whatever you do, you have been offered a maximum payout.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Thank you. I've just done it with wonga and quickquid. Kept the template pretty much the same although stated I had around 10 loans in one year with each which surely should have raised red flags with them.
How long did it take you start to finish with claiming it back?
Thanks again.0
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