Wonga Compensation
You
may have heard or read recently that Wonga, one of the largest payday loan lenders in the US, 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 US 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.
Published at
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By JeffreyPutman on 2022-10-16 22:33:32