Wonga is to pay more than £2.6m to around 45,000 customers for "unfair and misleading" debt collection practices following an investigation by the regulator.
The payday lender was found to have sent letters to customers in arrears from non-existent law firms, threatening legal action, according to the probe by the Office of Fair Trading (OFT) and taken forward by the Financial Conduct Authority (FCA). In some instances, Wonga also added charges to customers' accounts to cover the administration fees associated with sending the letters. Clive Adamson, director of supervision at the FCA, said: "Wonga's misconduct was very serious because it had the effect of exacerbating an already difficult situation for customers in arrears. We are please...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
