You may have heard or read recently that Wonga, one of the largest payday loan lenders in the UK, have been ordered by regulators to give compensation to tens of thousands of their customers due to something Wonga did in their formative years.
Any new company is going to experience teething problems and from time to time get things completely wrong. It appears that a few years back Wonga set up a couple of fictitious law firms and would send out to customers who had not paid back their loans on time, warning letters from these completely made up companies in the hope those letters would force their late payers to pay back their loans.
However, this practice has been frowned upon by regulators in the UK and they have ordered Wonga to pay compensation to every one of their customers who received one of these warning letters!
Wonga’s reply :
Whilst we cannot condone this activity, which incidentally Wonga ceased doing a couple of years back, as a fairly new company it was only be expected that they wouldn’t get things right, and as such if you received such a warning letter from Wonga in the past you will shortly be contacted by them and they will see that your compensation is either paid to you directly or is used to reduce any current loan you may have off them.
Since these warning letters from made up companies have been exposed, it also appears that a Government run company has also been sending out similar letters! The Student Loan Company who has been lending money to students for many years now always opted to set up a firm of fictitious layers and have been sending out warning letter to students behind on their payments!
So it will be very interesting to see if any student who has received such a letter will get some form of compensation from The Student Loan Company!
Be aware that if you do have repayment problems having taken a loan out from Wonga, they have put in place a straight forward and very fair policy to allow customers struggling to repay a Wonga payday loan to put together a repayment plan that will spread your repayments over several weeks or months.
If you do have a loan from Wonga and are going to be able to repay it on time then make sure you phone them up and discuss the problem for you are likely to find that not only will you be able to set up a repayment plan there and then over the telephone but Wonga may also additionally freeze your interest on the outstanding amount, which can only be a good thing!
If you are wondering whether you have to claim the compensation Wonga repaying, they have stated that they are going to contact each of the effected customers directly, and have additional information posted up on their website, including a full and frank apology for the way they operated in the past.