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.
Need financial advice?
If you are struggling with money, for whatever reason, or if you have any personal finance questions, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Equity release is here to stay, says SHIP
The downturn in the property sector will not spell the end for equity release plans, according to the director general of SHIP (Safe Home Income Plans). Latterly, the housing market has been marked by increasing volatility, with Halifax 's latest nationwide house price survey detecting a fall in house values of 1.3 per cent during April. This had led some analysts to speculate that the equity rele...
Read MoreHigh-cost lenders escape the wrath of the OFT
With the Office of Fair Trading (OFT) has, after a year-long investigation, decided not to impose pricing restrictions on high-cost lenders such as pawnbrokers, payday lenders and doorstop lenders. While there is some disappointment that the authorities have yet to step in and cap the current array of charges, with some interest rates in excess of 1000%, there was a feeling that by interfering wit...
Read MoreWonga will write off 330,000 loans after FCA investigation
02/10/2014 The UK’s biggest pay day lender, Wonga, have today announced they will write off 300,000 customer loans, totalling in £220 million, after the financial conduct authority (FCA) discovered the company was not doing enough to assess customers ability to meet their repayments. Approximately 330,000 customers who are in arrears of 30 days plus, as at 2 October 2014, will have their de...
Read MoreCash Genie to pay customers £20 million compensation
27/07/2015 Cash Genie, a payday loan company, faces a £20 million compensation bill for charging customers £50 for transferring them to the firms debt collection business. The Financial Conduct Authority (FCA) investigated the companies past processes and found a number of serious failings, which caused detriment to many customers, such as: • Unfair fees and interest • Loans bei...
Read MoreIs the Bank of England considering heavy duty credit easing?
Adam Posen, a member of the Bank of England MPC, has been talking about the problems ahead for the Bank of England with regards to the UK economy. He believes that if the quantitative easing program which many expect to happen in the short term is not successful then the Bank of England may need to adjust the borrowing costs in specific areas of the UK economy. He quoted "heavy duty credit easing"...
Read More