Wonga to write off 330,000 customers debts and let a further 45,000 off the interest

[Legal Beagles]

• For approximately 330,000 customers who are in arrears of 30 days plus, as at 2 October 2014, Wonga has agreed to write off all outstanding debt


• Approximately 45,000 customers who are in arrears of up to 29 days, as at 2 October 2014, will be asked to repay their debt without interest and charges, and will be given an option of paying off their debt over an extended period of four months



Wonga announces major customer forbearance programme and strengthens affordability checks to ensure sustainable lending Wonga Group today announces significant changes to its UK consumer loans business, Wonga.com, including: • A major customer forbearance programme • A strengthening of the lending criteria for Wonga.com to address issues of affordability and repeat borrowing • The move to […]

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[Amethyst]

Re: Wonga to write of 330,000 customers debts and let a further 45,000 off the intere



FCA Requirements

[Amethyst]

Re: Wonga to write of 330,000 customers debts and let a further 45,000 off the intere

Wonga write off £220 million of loans !!!!!!

[Celestine]

Re: Wonga to write of 330,000 customers debts and let a further 45,000 off the intere

Wow! That is going to affect a lot of our members. What about debts sold on to 3rd party debt purchasers though?

[Guest]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

Probably debts they were unlikely to collect anyway, attempt to head off legislative momentum by writing off some bad debt ?

or am I being to cynical.

[Amethyst]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

'' Affected customers will be contacted by 10 October 2014. ''

[Amethyst]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

Probably debts they were unlikely to collect anyway, attempt to head off legislative momentum by writing off some bad debt ?

or am I being to cynical.

They have kinda been forced to write off the debts by the FCA - and it is £220 million worth being written off - so it's a pretty heavy step to take in avoidance.

Its over 30 days in arrears - so it will mean those 330k people need pay nothing more. 45k people who are in arrears under 30 days will not have to pay interest / charges - just the capital borrowed.

It seems to be those people who wouldn't have passed lending criteria if Wonga had abided by the rules.

Doesn't sound like anyone is being repaid monies they have paid to Wonga (interest and charges) over the past few years though.... which is what should happen if their interest/charges have been found to be unfair ref affordability criteria etc.

[enaid]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

Probably debts they were unlikely to collect anyway, attempt to head off legislative momentum by writing off some bad debt ?

or am I being to cynical.

No more than me, seeing is believing as far as I am concerned. There has to be something in it for them.
If they can afford ' Wonga write off £220 million of loans !!!!!!' without going bust they should be shut down imo

[Nibbler]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

I think the "thing in it for them", is NOT being shut down by the FCA.

[BLUEOTTER]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

So i'm sure the question has been asked before but what about people who racked up huge debts in the past and were let down by the FSA who werent ensuring that lenders follow any affordability criteria ? I'd certainly be using this as an example in a court case of the fact that previous lenders weren't following any due diligence or affordability criteria.
In my case my maximum allowable credit on all my cards was at least 6 times my salary and my monthly pay wouldnt have covered the interest let alone anything else.

[Amethyst]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

Completely agree with you. Radio 5 live with Martin Lewis is discussing the subject at the moment ( when the news finishes - if you can call football news )

[Amethyst]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

''Wonga has estimated the financial loss of this latest move to be in the region of £35m.'' given provisions for those loans which it already thought would not be repaid,

[BLUEOTTER]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

Appreciate the lowdown on that please .............i think it should have major implications on court cases where lenders have taken no responsibility whatsoever for checking affordability.......so they did a credit check with experian but then disregarded it and still lent the money ?!! Can't be right or ....if it is accept that non repayment is the price you pay for negligence..............if they can retrospectively remove fred goodwins knighthood then they can retrospectively accept responsibility for being greedy irresponsible and reckless when lending money to people with no possibility of paying it back.

[Amethyst]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

If there was a breach of the rules in force when they lent to you then you should make a formal complaint asking for a refund of interest and charges incurred on the debt.

[Nibbler]

Re: Wonga to write off 330,000 customers debts and let a further 45,000 off the inter

Completely agree with you. Radio 5 live with Martin Lewis is discussing the subject at the moment ( when the news finishes - if you can call football news )

What time did that actually go to air? Shall have a listen later...