WONGA ordered to pay £2.6m Compensation for misleading Debt Collection Practices

[citizenB]

Wonga are far from being the only criminals using these methods as we are aware.

 

for example does a letter from TRITON which states we are acting on behalf of Natwest fall into the same category? they are Natwest and for sure in the past there was no indication on Tritons letters that they where in fact Natwest under another name??

 

FS

 

rebel1 also pointed out that Barclayshark trade as Mercers who then go on to trade as Connaught collections !! ..

 

So perhaps all of these need to be looked into.

[sillygirl1]

You aren't a lone voice, if you read my posts on this subject you will see that I have already said that they should pay interest on this £55 at THEIR rate and not at any other rate.... from the day they first sent out the letter to their delinquent customer.

 

I also fully believe that Wonga should now wipe all records they have posted on peoples credit files from the first date of wrongdoing identified and not be allowed to repost any information agaim to the credit reference agencies.

 

The CRAs also have a role in this, that they allowed an unlicenced, unregulated company (the alleged legal companies) access to credit files and allow them to amend records under Wonga's name.

 

As far as I am concerned again, WE should not HAVE to pay to access our credit records, this again should come under the FCA remit.

[andrew1]

You aren't a lone voice, if you read my posts on this subject you will see that I have already said that they should pay interest on this £55 at THEIR rate and not at any other rate.... from the day they first sent out the letter to their delinquent customer.

 

I also fully believe that Wonga should now wipe all records they have posted on peoples credit files from the first date of wrongdoing identified and not be allowed to repost any information agaim to the credit reference agencies.

 

The CRAs also have a role in this, that they allowed an unlicenced, unregulated company (the alleged legal companies) access to credit files and allow them to amend records under Wonga's name.

 

As far as I am concerned again, WE should not HAVE to pay to access our credit records, this again should come under the FCA remit.

 

I meant I was a single voice without much clout SG...I noticed what you have said and well done you...

 

There are a lot of knock-on legal issues with this and I am really focusing on the Licence required to undertake Debt Collection activities.

 

A trading style of a licenced finance company needs, by law, to be on a company's CCA Licence - was it?

 

A Debt Collection activity, if not collecting in their own name, by law, needs to be registered on a company CCA licence as such. - was it?

 

To have neither is committing a criminal offence and a criminal needs locking up or dealt with accordingly. Let's hope the Police do their job so we do not have to rely upon the likes of the useless OFT or this ridiculous situation where all offences reported to the OFT are effectively 'wiped out' by being handed over to the FCA - what kind of nonsense law is that?

 

I fortunately have had no dealings with Wonga, but this is the tip of an iceberg and this Wonga company need to set in stone the way other organisations get treated for doing the same.

 

Well done sillygirl who seems not so silly after all!

 

A1

[Nao]

Why was the OFT so useless?

 

What was its mandate in the first place when it does absolutely nothing but sit in a fancy office in Fleet St, get paid vast sums of public money to be there to protect us and then have no clout whatsoever to do what it is obliged to do?

 

Very good point.

 

Or to put into broader terms, Why was any regulatory body ever allowed to take the law into their own hands and administer it according to their own standards?

 

Why the duality between official law enforcement (police, courts and so on) and regulatory outfits?

 

Where does the responsibility of one start and the other end?

 

Shouldn't all violations of the law be dealt with through official law enforcement in the first place?

 

Why was the OFT allowed to investigate criminal behaviour on their own instead of being required to hand over the investigation to the police when it became clear that laws where being broken?

[Nao]

Warning the following quote is from daily mail and should therefore be taken with a grain of salt:

 

The Church of England was condemned last night after revealing it will continue investing in Wonga.

 

Church leaders defended the decision saying they believe their money can improve the behaviour of companies that are less than ‘morally perfect’.

 

Link to source: http://www.dailymail.co.uk/news/article-2672912/outcry-Church-says-wont-stop-investing-Wonga-We-make-lender-ethical-insist-leaders.html

[renegadeimp]

If its true, then that church is deluded. Or has more associations with the lenders behind the scenes.

[JOHNINYORK]

First of all,an apology for my earlier post,it seems to be all over the page.

I think that it is wise to realise what is happening here,people are confusing a legitimate in house DCA,with a bogus in house DCA.This will also apply to so called solicitors.One firm that comes to mind was Toothfairy/Speedcredit.Remember the tricks they tried to pull.

To answer the question from CitizenB,I do not know where you will find a copy of that letter.But I did manage to find this,maybe these are an example.

 

https://www.whatdotheyknow.com/request/125635/response/309372/attach/2/SL01%200812%20Redacted.pdf

https://www.whatdotheyknow.com/request/125635/response/309372/attach/3/SL02%200812%20Redacted.pdf

https://www.whatdotheyknow.com/request/125635/response/309372/attach/4/SLBA1%202012%20Redacted.pdf

https://www.whatdotheyknow.com/request/125635/response/309372/attach/5/SLOB1%202012%20Redacted.pdf

 

I also found this

 

http://www.buzzfeed.com/jimwaterson/how-the-student-loans-company-pretends-to-be-an-independent

 

But some members of CAG were wise to this in 2006,regarding SLC.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?956-Student-Loans-Company-Smith-Lawson-amp-Company-Recovery-Se

 

Just a couple of articles regarding Wonga.

 

http://www.dailymail.co.uk/money/cardsloans/article-2668974/Wonga-sent-customers-letters-non-existent-law-firms-says-FCA.html

 

http://www.dailymail.co.uk/money/cardsloans/article-2669413/ED-MONK-Wonga-sending-fake-solicitors-letters-customers-shows-really-thinks-them.html

 

Regards,John.

[citizenB]

The Smith Lawson letters do not appear to have any OFT Reference on them ?

 

And, how can SLC be a client of theirs, if Smith Lawson are a trading name of ... SLC ?

[pkee]

Ok how can you be default by a DCA when it dose not exist. think they should wipe all defaults that where placed on credit files during these dates

[Nao]

Ok how can you be default by a DCA when it dose not exist. think they should wipe all defaults that where placed on credit files during these dates

 

Dunno if it was the same for all Customers, but for me the default on the credit record was under the name Wonga, not the name of any other company regardless of which imaginary solictor was sending letters and the credit record only changed when they sold it to MMF.

 

Although regardless of that there was a whole range of other issues, like for example frequent unjustifiable credit checks from Wonga.

[BankFodder]

And now the Student Loans Company have been at it as well

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?427851-Wonga-Fake-letters-scandal-spreads-to-Student-Loans-Company&p=4565205#post4565205

[Jam_Buttie]

Only about £50 per person.

[Nao]

Only about £50 per person.

 

Its £50 plus all fees charged for the letters.

 

(and then they take 20% off that goes to HMRC)

[pkee]

no point buy the time you get money its like £20 if that lol

[hammyhound]

But will we receive our money, my letter states I will receive £50 but I need to contact them with my up to date details which I think means by debit card/bank details - not a chance. They will probably just rape my account with all the money they think they are owed ie in my case £200 loan became £1,960. I assume with everyone's account they will just put the £50 on the account so I now owe £1,910 according to them. Just checking when I defaulted I think it was 2008 so should be statute barred soon hopefully.

[hammyhound]

Oh dont start me on MMF. Its been back and forward in their home visit department for the last year. First it went to legal and then Mike from the home visit department rang to say he was on his way. Went quiet for about 3 months and then the calls started again went to their legal department and then home visit and then Mike again. They rang work and was told by a senior manager that if they rang again he would come down there and beat the s**t out of the lot of them. They told him there was no need to be aggressive. They said they would remove my work number immediately. The answerphone message is quite embarassing "hi this is motor mile finance this message is for ***. We are about to attempt a home visit on your property please contact us with a suitable appointment time.

 

Sorry off topic really but some DCA practices are appalling

[pkee]

think i would pay them a f£&@inf Visit if thay did that to me, i had welcome finance constantly ringing me so i got some revenge by ordering pizzas Chinese you name it to their offices then called them and asked if thay liked there food lmfao!!! the calls stop lol

[Nao]

But will we receive our money, my letter states I will receive £50 but I need to contact them with my up to date details which I think means by debit card/bank details - not a chance. They will probably just rape my account with all the money they think they are owed ie in my case £200 loan became £1,960. I assume with everyone's account they will just put the £50 on the account so I now owe £1,910 according to them. Just checking when I defaulted I think it was 2008 so should be statute barred soon hopefully.

 

 

Three things:

 

1: Are you sure the debt is still with Wonga and hasn't been sold to a DCA yet?

2: A £200 loan does not ever become £1960, what will have happened to push it that high is penalty charges having been added and interest being charged after the end of the credit agreement, both of which are big no nos and you will not have to pay them any more than you actually owe (amount you agreed to repay on original due date minus any payment already made minus any comp due).

3: So far neither the email or letter I received has asked for card or bank account details, so I suspect they might opt for the medieval method of paying the comp by cheque for those who actually receive money instead of having their balance reduced.

[kirstyo]

I logged on to see what info they wanted, it was only contact details so I gave them. someone will have to call me though as all my details are different from the ones they have on file (address, email and phone all changed). My account is marked settled and has been for a while, although I never paid it in full so I will wait to see what happens with the compensation. They cant really do any more damage to my credit file so I really dont have much to loose.They obviously did a credit search to get my new address to write to me which is a bit disturbing so im off to check my file to make sure its not there as a credit search.

 

 

I will keep you all updated

[blowing bubbles]

I took out a £700 loan in Nov 2008, lost my job through illness and could not pay on the due date. Wings were not interested in allowing me time to pay. Received one of their solicitors letters on 5th jan 2009 stating I now owed £964 . My husband tried several times to pay by credit card and kept being told their systems were down. By the time they took the payment it had increased to £2331. So £50 compensation is quite insulting

[skelly5918]

Letter from Wonga states you will not get £50 but £50 minus 20% Tax. Hope they are not trying one on.

 

Tell me they cant offset collected taxes against anything.

[JOHNINYORK]

Slightly off topic,but the saga continues.

 

http://www.dailymail.co.uk/news/article-2680068/Fury-banks-send-Wonga-style-legal-threats-customers-MPs-condemn-dishonest-distressing-tactic.html

 

Regards,John.

[BankFodder]

Message from Channel 4 News

 

Dear CAG forum members

 

Channel 4 News is looking for people who have received letters from non-existent law firms. We are hoping to highlight cases where customers believed that their outstanding debt had been passed to a law firm, with legal action threatened if the debt was not paid. If you are willing to be interviewed please do get in touch with me. Many thanks

 

Girish - girish.juneja@itn.co.uk

[andrew1]

a £50 payment doesn't make up for the stress and annoyance of someone calling 3-4 times a day from Blair Oliver & Scott between 8 a.m. and 8 pm.

[citizenB]

Letter from Wonga states you will not get £50 but £50 minus 20% Tax. Hope they are not trying one on.

 

Tell me they cant offset collected taxes against anything.

 

 

I dont understand why they are deducting tax anyway ?