Wonga Repayment Plan - Payments Set Higher Than What I Can Afford

[Peepo]

I have an outstanding Wonga loan & recently became unemployed.

They set up a payment arrangement this week but are refusing to let me spread the payments over anything more than a year. This has put my repayments at £31 per week and being unemployed I cant afford it.

Is there anything I can do about this?

[renegadeimp]

You tell them what you are payong and back it up with a simple budget summary.

 

Ignore their silly demands where think they can demand.

[Peepo]

Hi, thanks for the reply.

Are they correct in telling me they cant spread a repayment plan over more than 12 months?

[National Debtline]

Hello there.

 

You should be able to spread the payments over a longer period if it is reasonable for you to do so. If you are not working and in receipt of a means-tested benefit such as job seeker's allowance the payments could be as low as £1 per month. As Renegadeimp as mentioned you should complete a financial statement to show them that your offer of payment is fair and reasonable, you can find one on our website: http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#5

 

Do you have other debts? There could be alternative options.

 

It's best to communicate in writing or via e-mail, please avoid telephone calls. If they continue to drag their heels think about asking for a copy of their formal complaints procedure. You can also consider a further complaint to the Financial Ombudsman. There are guidelines such as the Lending Code and the Office of Fair Trading Debt Collection Guidance which they should be following. In addition, there are also guidelines specific to payday lenders. From the information you have provided it appears that Wonga are not being as fair and as reasonable as they should be. We have a useful fact sheet on payday loans, you can find it here:

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=41_payday_loans

 

Best wishes,

 

David @ NDL.

[Peepo]

Hi, thankyou for the reply.

Is there any way to make repayments to them without them having your debit card details? I would like to take control back from them as at the moment they have access to my account & I am at their mercy.

[National Debtline]

Hello again,

 

Standing order is generally the recommended way of making payment as you call the shots in relation to how much you pay. Once a payday loan firm has a debit card you could well be at their mercy. In fact, when payday loans are set up originally it is usually the case that the borrower authorises a 'continuous payment authority'. This allows the lender the ability to keep trying to take payments as often as they wish until they've been paid in full. We have come across many clients who have found their banks emptied. There is a sample letter at the end of the fact sheet which you can use to cancel this authority - we suggest doing it with both Wonga and your bank. Some people go as far as to open a new account elsewhere - we call this opening a 'safe bank account'.

 

Do you have any other debts?

 

Thanks,

 

David.

[Peepo]

Hi, thanks for the reply. I can cancel the card if that will help. But are they able to take money with my bank details? I see in my Wonga account they have my account number & sort code for making payments to me. Are they unscrupulous enough to use this information?

I have written a letter to them and included the income sheet you suggested. I called them up to confirm the original loan amount (as they sneakily remove the original loan information from your online account once you set up a payment arrangement) & found out they are still adding interest to my loan even though I informed them well before the due date that I was going to have a problem paying & I set up the payment arrangement.

 

I don't have any other debts these days thankfully. When I first came on this forum a few years ago I was in a bad way financially & emotionally. This website helped me fight back. Oh now I think of it I do have an old DSS budgeting loan I took out years ago that is following me round like a bad smell. I never made an official payment arrangement with them as they were demanding £50 per month and would not accept anything else. So I make a payment of £1 per week to keep them off my back as I read they can't force me to do anything if I am willingly making a regular payment myself.

[renegadeimp]

You can cancel the card, but the best and guaranteed way to stop them is to write a simple letter to your bank that instructs them to cancel the transactions and CPA's. Use payment regulations 2009 sec 55.

[Peepo]

Ok I will do that also.

How can I get Wongas bank details to set up a standing order?

[renegadeimp]

Ask them. They usually give them out willingly.

[Peepo]

I just found them on their website.

http://help.wonga.com/articles/What_Is_external/What-are-your-bank-details-for-repayments

 

Thanks for your help guys, I feel empowered again.