Delight in Wonga having to write off £76.8m bad debts in 2011

[iwentbankrupt]

Quelle surprise - there is an article in today's Guardian about huge write offs by Wonga because many of the people they've lent to cannot afford to pay their loans back. Nobody saw that one coming...

[louloubelle0195]

I also read that Wronga are seeking to assign (i.e. sell) their outstanding debts to a DCA. If this is the case, and CAGgers receive letters from such DCAs, please search the forums accordingly to realise that DCAs have no power whatsoever.

[renegadeimp]

Wonga regularly sell debts to DCA's. The sad thing is, that there is no law stopping them selling these bad debts.

[theuprightman]

If an eternal 3rd party purchases the debt then they purchase all rights over said debt and do have power to act on the debt as they see fit.

[renegadeimp]

If an eternal 3rd party purchases the debt then they purchase all rights over said debt and do have power to act on the debt as they see fit.

 

Unfortunately that is completely true

[theuprightman]

However, as a debt purchasing company you must be crazy to touch PDLs. Even when paying three pence in the pound.

[renegadeimp]

Sadly many of these companies do indeed buy up bad PDL debts.

[louloubelle0195]

Debt purchasers, in the main, rely on people not knowing their rights. They will also use unscrupulous methods, such as writing to a group of individuals with a similar name to the alleged debtor, or even addressing letters to the "Occupier." Hopefully, as more people use sites such as CAG, such intimidatory tactics will have a reduced effect.

[renegadeimp]

Everytime i get a letter addressed to "the occupier" it either gets returned to sender or makes a good addition to the compost heap.

[creditcardmug]

Also bear in mind every time they sell a debt to a dca, they not only get the 10% or so i the £, but also get all of their money back in the form of tax relief from us the taxpayer!, so they are laughing all the way to the bank as it were