OFT warns Wonga over debt collection methods

Jenna Towler
clock

Payday loan firm Wonga has been criticised by the Office of Fair Trading (OFT) for using aggressive and misleading debt collection methods.

The OFT said it had contacted the company to ensure its practices were "acceptable" after customers complained. It said Wonga staff had tried to collect debts by scaring customers into thinking they had committed fraud and could be reported to the police. Wording in call scripts used by staff stated that customers with jobs in the public or financial sectors should not find themselves in debt, and that this was stated in their terms of employment. Wonga said it would appeal against the OFT as the inducements had been isolated and took place a long time ago, the BBC reports. The ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Adviser numbers rise for Continuum as it expects further growth this year

Adviser numbers rise for Continuum as it expects further growth this year

Assets under influence grew 20% year-on-year to £2.07bn

Sahar Nazir
clock 22 April 2024 • 1 min read
Hitting milestones later in life could impact when people seek advice

Hitting milestones later in life could impact when people seek advice

People will likely be seeking financial advice later

Laura Suter
clock 19 April 2024 • 3 min read
Regulatory pressures taking a toll on industry stress levels

Regulatory pressures taking a toll on industry stress levels

'Regulatory pressures are the first thing on my mind’

Sahar Nazir
clock 19 April 2024 • 1 min read