Wonga still owes 1000’s of customers compensation
17/11/2014
Thousands of people who are owed compensation from pay day loan company Wonga have yet to be given any money.
Earlier in the year, 45,000 customers in arrears on their loans were sent letters from Wonga posing as a none-existent law firm. The letters intended to make customers in arrears believe that their outstanding debt had been passed to a law firm, with legal action threatened if the debt was not paid. After an investigation from the Financial Conduct Authority (FCA), in June the company agreed to pay out £2.6 million in compensation to 45,000 customers.
To date, Wonga have contacted only 27,000 customers. The customers are required to read a letter from Wonga offering the compensation, and then the consumer is required to contact Wonga to accept it. So far, only 5,000 customers have responded, with 99% of them accepting the offer of compensation.
Joanna Elson, chief executive of the Money Advice Trust, said:
"The fact that so many customers are yet to respond to the letters that Wonga have sent out is a concern - you have to wonder how many of these envelopes have gone unopened.
"Given that many of those affected have been in financial difficulty and chased for payments in the past, it is understandable they may be nervous when another letter lands on their doorstep."
Nick Brookes, Wonga's chief credit officer said some customers details had changed and the company could not get in contact with them.
Wonga have also today agreed to remove a TV campaign from the worldwide channels and Youtube, and they featured puppets and often appealed to children.
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