Wonga and the Fake Law firms

[The Mighty Elvi]

Heads up for those of you unfortunate to have used them, and highlight the general practice of "In House" law firms used by lenders.

http://news.sky.com/story/1288984/wonga-penalised-2-6m-for-fake-legal-threats

Wonga's Apology For Fake Legal Letters
Updated: 10:11am UK, Wednesday 25 June 2014

This is the full text of Wonga's apology and information for customers:

"Dear Wonga customers,

We are issuing a public apology following an announcement by the Financial Conduct Authority regarding the following two issues.

Historical debt collection issues:

Between 2008 and 2010, we sent out letters to 44,556 customers claiming to be from companies "Barker & Lowe" and "Chainey, D'Amato & Shannon".

These letters were in fact from Wonga. They gave the misleading impression that customers' outstanding debts had been passed on to a law firm (or other third party) with the threat of adverse consequences if the debts were not repaid quickly. Charges were added to some customer accounts as a result of this practice.

This practice was unacceptable and should never have happened. It ran contrary to the principle of transparency on which our business has been built."

[mcgee9t2]

Havent used them myself, but know a few people who have.

tbh for all the bad press they get iv never thought there that bad, yes they charge silly high APR, but so do all of these types of loans, your not meant to repay over years or months your meant to repay over days maybe weeks.  when my mates have used them in the past they have borrowed £100+ for a few days, maybe a week (untill pay day) then when they have paid it off they only paid an extra £10 or so on top of the money borrowed, which i dont think is too bad.

however i do agree that the fake law letters is a bit too far.

[Adam]

You need to be desperate to use a Payday lender like this.

It will destroy your credit file. 

[Waspy]

You do indeed have to be desperate. If I was desperate enough to use a payday lender I would certainly be going to my family first. Especially if is only 100 quid. At lkeast then I can explain my situation and paying back a week late isnt going destroy my life.

Ive never had credit, bar my phone contract. Probably isnt great when I come to get a mortage, but it means I avoid the potential constant worries which come along with credit/debt.