Wonga Default Issue

[munden123]

Hi guys.

wondering if you can help me.

Back in August 2013, i foolishly took out a pay day loan with Wonga ( BIG MISTAKE). A couple of weeks after that i was then admitted to hospital for just under 5 weeks. I contacted them on three separate occasions to make them aware of my current situation and that i was worried they might default my account. They assured me they would default me and would set up a payment plan. I recently checked my credit file and discovered they did in fact default my account in 2014. I have been in discussions with them for the past month, where i have highlighted my upset regarding this issue. My angle has been that no default notice was sent. I recently received this email from them.

Dear munden123,


Thanks for your continued patience while we reviewed your query.

We would like to use this opportunity to address the issues raised in your email and hope this clarifies these issues.

1. You have requested a copy of your loan agreement and statement of account,
please see the attached.

2. You have requested a copy of the original default notice and stated this is
required under s78 (1) of the Consumer Act 1974. Please note that a Default
Notice is issued when a debtor intends to pursue a debt through the courts or end
the relationship entirely under the contract. Wonga does not issue these notices
as we do not issue debt collection proceedings.

The other kind of notice is a Notice to Register a Default, which is sent when we intend to register a default on a customer’s credit file. However, in circumstances where your loan balance was outstanding for over a year we were not required to send you a Notice of Intention to Register a Default.

If you have any questions or require any further information, please call us on 0207 138 8330. We’re here to help 24 hours a day, every day.

Yours sincerely,


Customer Care
0207 138 8330
Wonga.com



I was wondering if any generous Legal beagle members might be able to offer any advice as to what to do next.

I appreciate all the help.

Thank you in advance

munden123

[nemesis45]

Re: Wonga Default Issue

Hi welcome to LB,

What they say is unfortunately correct.

Have you or do you intend to pay off the debt?
Did you enter into the offered payment plan?

If you can pay in full the CRA entries will be marked satisfied if a partial settlement is agreed the entries are marked as such.

It's common for lenders to default accounts when agreements to pay less than the contractually required payments are made.

nem

[munden123]

Re: Wonga Default Issue

I paid the debt off in full.
Should they not have sent me a default notice.

[munden123]

Re: Wonga Default Issue

I was told that they should have issued a default notice?

[nemesis45]

Re: Wonga Default Issue

I paid the debt off in full.
Should they not have sent me a default notice.

The short fixed term loans I gather are subject to different rules,
they say the sent an " intention to default letter" appropriate in this case, but it appears
from what you say the debt remained unpaid for a year?
nem

[munden123]

Re: Wonga Default Issue

the debt was unpaid for around 5-6 months. They did not send out any default letters at all.

[nemesis45]

Re: Wonga Default Issue

the debt was unpaid for around 5-6 months. They did not send out any default letters at all.

I expect you might find the basis of their reply in the terms and conditions they have supplied.
Can I ask what you are trying to achieve?

nem

[Debt Camel]

Re: Wonga Default Issue

They wrote to you:

The other kind of notice is a Notice to Register a Default, which is sent when we intend to register a default on a customer’s credit file. However, in circumstances where your loan balance was outstanding for over a year we were not required to send you a Notice of Intention to Register a Default.

But you say:

the debt was unpaid for around 5-6 months.

Is that correct? If it is, I suggest you reply to their letter saying that your debt was not outstanding for over a year, you took it out on dd/mm/yy and it was repaid on dd/mm/yy. Therefore in accordance with their previous reply to you, they should not have marked your credit file as in default without sending you a Notice to Register a Default, which they did not do. So you are asking them to delete this unfair default marker or you intend to complain to the Financial Ombudsman.

[munden123]

Re: Wonga Default Issue

It is my intention to try and get the default removed. As i feel that no notice was given.

[Myles Away]

Re: Wonga Default Issue

Hi munden123,

I have been going through the same situation and I've reached the same point. Having read through my terms and conditions it appears that i should have been notified of the default being placed on my account.

Section 7 states "Where you borrow from us, we will give details of your loan(s)/account(s) and howyou manage it/them to CRAs.If you borrow and do not repay in full and on time,CRAs will record the outstanding debt and, in some cases, the length of time that thedebt remains outstanding. This information may be supplied to other organisationsby CRAs and FPAs to perform similar checks and to trace your whereabouts and [IMG]file:///page6image25320[/IMG]

recover debts that you owe. Records remain on file for 6 years after they are closed,whether settled by you or defaulted.
We will give you prior notice of a default being registered on your credit referencefile. However, we may not always give you notice if we plan to take court action."





I will be drafting a letter to send to them tomorrow and let you know how i get on. Did you have any luck?

Myles Away

[nemesis45]

Re: Wonga Default Issue

Hi munden123,

I have been going through the same situation and I've reached the same point. Having read through my terms and conditions it appears that i should have been notified of the default being placed on my account.

Section 7 states "Where you borrow from us, we will give details of your loan(s)/account(s) and howyou manage it/them to CRAs.If you borrow and do not repay in full and on time,CRAs will record the outstanding debt and, in some cases, the length of time that thedebt remains outstanding. This information may be supplied to other organisationsby CRAs and FPAs to perform similar checks and to trace your whereabouts and [IMG]file:///page6image25320[/IMG]

recover debts that you owe. Records remain on file for 6 years after they are closed,whether settled by you or defaulted.
We will give you prior notice of a default being registered on your credit referencefile. However, we may not always give you notice if we plan to take court action."





I will be drafting a letter to send to them tomorrow and let you know how i get on. Did you have any luck?

Myles Away

You must bear in mind that a creditor does not have to " store/archive " hard copies of default notices,
annotation that notice was given on a specific date is recorded on a debtors file and can be relied a upon.

It's also possible for the creditor to rectify any alleged fault by issuing a new compliant notice.

As to removing a default, not easy the default did occur and it a true reflection of the conduct of the account.

nem

[Debt Camel]

Re: Wonga Default Issue

As to removing a default, not easy the default did occur and it a true reflection of the conduct of the account

Yes, this is correct.

HOWEVER there is another line of approach for payday loans (well it can also be used for other debts but it's easier with payday loans)...

If you can make out an argument that you should never have been given the loan in the first place because you could not afford to repay it on time and still meet you normal monthly payments, then you can say the loan was unaffordable and any interest or charges added should be removed and the loand deleted from your credit record. See http://debtcamel.co.uk/payday-loan-refunds/ for more details and sample letters.