Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k custs

[Wombats]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Responsible lending and responsible borrowing.

I've done the irresponsible before people start gunning for me, and I wish with hindsight that people had turned me down for loans rather than lend irresponsibly. The fact they did leaves me with little sympathy if they get bad debts. Not many choose to get into that situation, and desperate situations force desperate measures. However, the lenders know where the people are heading, and at what stage on their downward journey they are. I agree the whole process needs looking at, especially anything sub-prime.

[PAWS]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

This is not a cop-out but why do debtors hang their head inshame when those lucky enough to have escaped debt issues wag their fingers or spout neither a borrower…:blah:.. This is not about irresponsible people trying to avoid paying what they owe; it is about normal people made vulnerable by events outside of their control and then been ripped off and stitched up by DCAs whose Raison d'être is to feed on the misfortunes of others. The solicitors who help them terrorise and bully are no better than Ambulance chasers.
The University of Brighton report that I have referred to above also made the following points:
It revealed that debt problems tend to be the result of unexpected life events, rather than irrational spending. Those who are in debt are no more likely to spend irrationally than the general public, but they are often on very low incomes, it said. It also identified that while education around debt management might be worthwhile,"it fails to address the problems of incomes and standards of living which often drive the use and over use of personal credit".
There were exceptions,but most agreed that the people who were seeking debt advice were adequately capable of budgeting. It was suggested that experiences of debt most often occurred following life events that were unexpected and that disrupted previous budgeting.
While it appears to be the case that practices of irrationality and poor accounting are common in all people, our research suggested that they are no more common in the over-indebted than those who are not over-indebted.

[EXC]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

[PAWS]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

How Low (e) can you get !

[meellis]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Returning to post 166, there has to be greater understanding by the majority of people irresponsible lending has been as big a problem as irresponsible borrowing. From my own experiences I am pretty sure that the majority of companies caught in my bankruptcy had greatly inflated their claims with the use of in house collection and legal departments. None of what they added bore any resemblance to true cost and what had been added to the balance seemed close to the percentage they would have wrote of against tax so I don't feel they lost anywhere near as much as I have. In all of these two way relationships I know I have paid my dues but I don't feel they have and I really feel for the smaller companies and individuals who didn't have the facilities or resources to cushion the blow my bankruptcy caused them. Mine came about from building a business and getting caught in the bad weather around Christmas 09, I still have days where I crucify myself for what happened and how it as left me but I am also aware that if it had gone slightly the other way the same people who are condemning me would be applauding me. The thing is hounding people and grinding them into the dust to take every last thing of value isn't a great long term plan. Now we are in a position where all these finance companies are complaining about lack of profits , but can still afford to pay large wages and bonuses, and joe public are left with endowment mortgages without enough endowments to clear the mortgage, large debts, low wages and tightening restrictions on borrowing that stops them from refinancing anything. We will just get going again and something will burst, either people will have to sell homes they cannot re-mortgage and nobody else will get mortgages for or people will just end up defaulting things they are just keeping on top off due to the low interest. That is one of the reasons why something needs to be done about the finance industry because we are just going round in circles, yes stop people getting into more debt but also find a realistic way of helping people get out of debt.

[Fred]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Have these types of companies simply got to much power & influence ?

Is it the system that is fundamentally unfair ?

[meellis]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

You would have to say they pull tricks like the letters with a belief they can get away with it and going on what has happened historically they might have a good reason to believe it. Like any business decision you might make money from it or you might lose, if you make enough you get a bonus and if you lose a lot you might lose your job which would be less likely if you have been performing well and show the promise of performing well in the future. I personally don't believe financial penalties on a company that is in the financial industry is anything more than an hindrance like a bad business decision. In the gas industry you are personally liable for your actions as well as the company you work for and that is drummed in to you so maybe that is what should happen in other businesses so that individuals really do take an interest in what they might be liable for. I would guess that more people have been harmed from bad financial and legal decisions than gas explosions but they would never have been reported or calculated.

[Fred]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Would it make a difference if people had the confidence to go to the FOS or dare I write have a regulator with a pair ?

[meellis]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Have a regulator with a pair by all means but if there isn't a real punishment that deters then what is a regulator going to do. Where does a lot of the fines go, how much do the people who really get hurt receive and do the culprits walk away to come up with another scheme that nets them a fortune before they are stopped. There is a reason why the rich get richer.

[EXC]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Statement from City of London Police:

“In March 2013 the Office of Fair Trading met with the City of London Police to consider their (OFT’s) investigation into Wonga and whether it should be referred to the National Policing Lead for Fraud.

The interests of the consumer were at the forefront of these discussions and directed the decision that the most appropriate course of action was for the OFT to continue to investigate as regulator focusing on but not limited to the consumer credit act, legal services act, and unfair trading regulations.

Now that the regulator’s investigation has concluded and a compensation agreement has been reached with Wonga, the City of London Police will be reassessing whether a criminal investigation is now appropriate.”

[meellis]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

I wonder what the interest of the consumer was, whether they had been fleeced enough by then. It sounds like passing the buck really, I was under the impression that the regulator oversaw regulatory matters and the police looked into criminal matters. Outside the beloved city the police wouldn't hesitate if misrepresentation was placed before them .

[Fred]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

The OFT had run a successful ship for over forty years ( self statement ) this is not a view that I share, the FCA are no different up to now same investigative procedures & incentives which make all this such a predictable safe haven for the Banks especially if that's where your next promotion is.

They have the power to impose immediate sanctions but rarely do instead relying on some archaic "you scratch my back blah blah" in deals which never come out for scrutiny nor do we (joe public) get to find out what was wrong all because its in our best interests to be kept confidential & allow them to do their job properly in trust, the more you read into this lot the worse it becomes.

[meellis]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Up until bankruptcy I would say that I was part of the majority who have these pre-conceived ideas placed in their minds like all people on benefits don't want to work, debtors are responsible for their actions, banks are looking after your interest, the government is doing the best for the country and the law system is something to be proud of. I have really had my eyes opened though because a lot of these beliefs are based around the minority not majority. I am realistic there are people who just don't want to work, there are people who have been reckless with their borrowing, there are some good people working in banking, its harder to find something good to say about the government or legal system though. I can understand why judges look at internet forums with disdain because I have read posts where it is obvious the poster is just trying to get out of a perfectly legitimate arrangement so I can understand why we fight to get these people to believe us on realistic issues. But when high paid legal teams get wealthy people off of legitimate criminal accusations that people who cant afford legal teams have to take the high jump for it really rubs salt in the wound. I am not an eco-warrior, I am not anti wealthy people or anti credit I just would like things to be fairer and more realistic.

[andrew1]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Up until bankruptcy I would say that I was part of the majority who have these pre-conceived ideas placed in their minds like all people on benefits don't want to work, debtors are responsible for their actions, banks are looking after your interest, the government is doing the best for the country and the law system is something to be proud of. I have really had my eyes opened though because a lot of these beliefs are based around the minority not majority. I am realistic there are people who just don't want to work, there are people who have been reckless with their borrowing, there are some good people working in banking, its harder to find something good to say about the government or legal system though. I can understand why judges look at internet forums with disdain because I have read posts where it is obvious the poster is just trying to get out of a perfectly legitimate arrangement so I can understand why we fight to get these people to believe us on realistic issues. But when high paid legal teams get wealthy people off of legitimate criminal accusations that people who cant afford legal teams have to take the high jump for it really rubs salt in the wound. I am not an eco-warrior, I am not anti wealthy people or anti credit I just would like things to be fairer and more realistic.

Do you know something meellis, that's about the most profound statement I think I have ever seen you make. It takes a while to come around to that way of thinking, to really understand what 'really' goes on behind the scenes and I know that because I was exactly like you were once upon a time. When the penny drops though and you actually see things for what they really are, not only does it make you look at things very differently from now on, it hurts to think you ever gave your trust to these people in the first place.

Welcome to our world now, it takes a while doesn't it? It sickens me now to see what some like these so called 'professionals' have done to just we few individuals around the issues you know we've had..and we trusted them to put justice first!!!.....I had to get real too.

Good morning!

A1

[meellis]

Re: Wonga to pay redress for unfair debt collection practices – FCA - £2.6m to 45k cu

Unfortunately A1 I realised a while ago but the majority haven't. The people we place our trust in are making it harder for us not to have to use them and we are walking blindly into it. With contactless payments, phone payments, credit/debit cards, SO, DD, you won't be able to use cash soon, you are already penalised for doing so in some instances. Its getting harder to get bank accounts and certainly free ones so if we think these people have us in there palms at the moment their palms will soon be squeezing our nether regions.