25/06/2014

Payday Loan Firm To Pay £2.6m For Fake Legal Letters

Payday lender firm Wonga is to pay customers over £2.6 million for unfair and misleading debt collection practices.

The Financial Conduct Authority said around 45,000 customers in arrears were sent letters from non-existent law firms threatening legal action.

Wonga also added charges to customers’ accounts to cover the administration fees associated with sending the letters.

Clive Adamson, director of supervision at the FCA, said: "Wonga's misconduct was very serious because it had the effect of exacerbating an already difficult situation for customers in arrears. We are pleased that Wonga has been working with us to put matters right for its customers and to ensure that these historical practices are truly a thing of the past.

"The FCA expects firms to pay particular attention to fair treatment of those who have difficulty in meeting their loan repayments."

(CVS/CD)




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