Wonga, the UK’s biggest payday lender, has entered an agreement with the Financial Conduct Authority (FCA) which will see it pay compensation of over £2.6m to around 45,000 customers for unfair and misleading debt collection practices.
In an investigation begun by the Office of Fair Trading (OFT) and taken forward by the FCA, Wonga was found to have sent letters to customers in arrears from non-existent law firms, threatening legal action. In some instances, Wonga also added charges to customers’ accounts to cover the administration fees associated with sending the letters.
Your limit of 1 article in 30 days is up. Please login for full access or subscribe.
Corporate users - click here for simple access (no password needed).
For more information, please contact jasmine.glass@legalbusiness.co.uk
