Wonga.com 2334% Apr Help

[EBOY]

I realise their power is limited. Indeed Wonga didn't even respond to the FLA when they passed my complaint to them. However the FLA has offered to try and neogtiate on my behalf. Their is no doubt that Wonga are an amateur outfit. Their solicitors don't appear to exist,they don't respond to complaints and they lend irresponsibily.

 

So perhaps the FLA can't do anything but the more complaints then surelhe FLA will have to look at their membership.

Edited February 6, 2009 by EBOY
not complete

[sequenci]

No worries, I didn't know that this type of finance would come under the remit of the FLA, I thought they were more to do with things such as car hire-purchase etc.

[HulseAlpha1]

have major problems with Wonga....the email below details what i've sent them and the situation

 

"I am writing in reference to my Wonga account registered to my email address.

On the 25th February 2009, I contacted the Wonga collections team as I was (and still are) facing financial difficulties. I rang to discuss the possibility of making an arrangement to set up a payment plan and pay my Wonga loan at 20% per month. After using Wonga for nearly a year and paying several hundreds of pounds of interest, I assumed in good faith that Wonga would be open to this proposition. The gentleman I spoke to, quite happy to discuss my account without confirming at least two security questions (in violation of FSA codes of practice), agreed to allow me to pay 20% off each month as long as I made payment on the same day I contacted him. I note that no reference to extending my loan was made during this telephone conversation. Upon making the payment, I found to my concern that approximately £100 extra interest had been added to my account a month later (around the 25th February). After attempting to contact Wonga by telephone nearly 13 times in one, to which the telephone was not answered, I emailed Wonga and instructed them that I required a manager to contact me. After emailing again a day later, a manager contacted me after 48 hours of making my original email (I can only assume this was deliberate to allow Wonga to allow more interest to accrue on my account during this 48 hours). The manager I spoke to, again not bothering to confirm any security details, instructed me that the notes on my account read that I rang on the 25th January to extend my loan. I instructed the manager that I have cancelled my debit to prevent Wonga from removing funds to which they were not entitled to. The manager instructed me she could only extend the loan over 3 months upon receipt of evidence of my financial difficulties. After refusing to provide financially sensitive information to a company whose motives I find unscrupulous, the manager informed me that an extra £45 charge would be added 5 working days after the telephone conversation. I instructed the manager that I was quite prepared to default this loan due to my financial difficulties, but did not want to take this course of action as I wanted to pay this loan off over a reasonable time period without accruing any more unreasonable interest. The manager informed me that upon receipt of evidence surrounding my financial situation she could arrange to "look into" providing me with a 3 month payment plan, which presented repayments I can not afford.

 

Due to these facts I hereby inform Wonga.com Ltd (trading as Wonga.com) that I place my account in dispute, and that no means available to Wonga will force to to pay £230.00 (approximately) interest charges which I find unreasonable and unlawful, and I put it to Wonga that I have been lied to by the Collections team member I spoke to originally. I consider the amount owed to Wonga to be £405.08.

 

Please be advised that I will only communicate with you in writing.

 

Furthermore, should it be your intention to arrange a “doorstep call”, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make an appointment with you.

 

There is only an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v. Sheppard and Short Ltd [1959] 2 Q.B. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and if you do so, then you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance.

 

I expect a response in writing within 2 working days to acknowledge receipt of this complaint. Furthermore, I fully intend to invoice the FSA and the OFT if Wonga do not wish to resolve this situation reasonably.

 

Please note that several automated phone calls have been made to my partners number (edited)which I used for confirmation as Wonga would not accept my personal number. I expect these calls to cease immediately."

[kiptower]

take the phone number out or anything that identifies you

[sillygirl1]

I'd remove your partners phone no from the info above...

 

Also ask your bank to give you a new account number as Wonga will almost certainly ignore the direct debit and go in and remove lots of small amounts of cash from your account until the account is empty. Try and do this before your next payday.

 

Report them to the OFT as well as they clearly are not helping with the £45 charge (which I think they apply every 5 days) and their astronomically high interest rate.

 

Customer help doesnt come under their remits as they are on high commission (in fact I think they are on commission only salaries) which makes it more viable for them to charge then help people in difficulty.

[Ell-enn]

I have removed your partner's mobile number from your post

[la2006]

I'm going through a similar thing with WONGA

 

La2006 VS, Wonga

 

Wonga are clearly trying to make as much money as possible. They only got their Consumer credit license last year and are run my three men.

 

I sent my complaint to the OFT and FOS

[Tawnyowl]

Need sorting out causing a lot of misery this lot.Anyone managed to beat them yet.Any further updates on complaints.Heres one of them i believe.Says contact him.Go on whos first.Just reading about them.Thought the sub primers were bad enough this lot make them look like angels.Errol Damelin, Wonga.com - LookupPage

[ukaviator]

Wonga is backed by a company called Balderton Capital Managment who are venture capitalists. Their mission is to help entrepreneurs create great companies.

 

From their website:

 

We have no interest (no pun intended) in keeping you in debt. Now that may sound like a strange statement for any lender to make, but Wonga provides short term loans for up to 30 days. We want you to repay your loan quickly and, unlike many traditional sources of credit, we're not about keeping payments coming in for as long as possible. Our service is designed to put you in control of your cashflow, for those times when an unexpected expense catches you by surprise.

 

I think a complaint to the FSA is required here, also a letter to your local Trading Standards as this breaches the Consumer Protection from Unfair Trading Regulations 2008.

[Tawnyowl]

Might be of use to someone.Ibelieve the OFTare investigating pay day loans but cant find any upto the minute news.The internet is full of ads to start these firms and for to a ex subprimer or other vermin for a relatively small amount can carry on lining their still fat wallets and lifestyles.I read somewhere that the skys the limit moneywise if someone came up with a internet only way of doing these payday loans[could be old news]-seems wonga did.Not sure if they-wonga operate internationally but probably do.Try to make as much as they can before they are caught up with.Seems to me there is no stopping powerfull brains allways coming up with get rich scams.Do we really believe they would be happy if everyone settled on time.Sooner they are dealt with the better-but as usual by the time this will happen they probably will be starting something else or in another country.Anyway if you have defaulted you might find this helpfulhttp://www.paydayloanadvances.co.uk/Non_Payment_Default.asp

[Tawnyowl]

Advice For Non Payment (Defaulting) Of A payday Loan

[42man]

2.10 Examples of unfair practices are as follows:

 

d. applying unreasonable charges, for example, charges not based on actual and necessary costs

e. applying charges which are disproportionate to the main debt.

[Tawnyowl]

I believe in america some states have banned paydayloans and now had rates capped at 36 percent.Although high at that rate should see the companies off fully in time.Hopefully rates will be capped here.Suppose some people make good use of them and others when miss payments due to changes in circumstances-illness - job problems -late wages etc cause nothing but misery.If i was in trouble with one of these companys ,as they dont seem helpfull and probably make fortunes out of late payments i would first change banks then go to CAB or CCCS or any free debt helpline for advice and help to deal with them.

[Guest Voldemort]

I feel wonga are the most awful and inflexible payday lenders in market, totally opposite of what their website claims. I got stuck with them some time back and they dont buzz from their position at all. I would advise everyone.. do not go to them at all..

[Tawnyowl]

Maybe old news but leads on to a free debtliine that may help if you are in to deep.Facebook Ads - Facebook Payday Loans Ad - Maybe Illegal? | DEBT NEWS from Payplan

[Tawnyowl]

Just a article found elsewhere on the forums,BBC NEWS | UK | Payday loan sales come under fire

[Dichotomy]

This sounds like QuickQuid:

 

"If you get a loan with them, say four or five loans with them, you'll go from a silver member, I think after the first 2 loans: that gives you 10% off.

"Then another four loans, then you get gold status. Then you'll get 15% off your next loan, so you're actually paying less interest back."

 

A typical marketing scheme applied to payday loans.

[SmithBlack]

The MP's would love some good publicity too so I'm sure you'll be defended

[MoneyExploding]

I am not an authority on short term unsecured loans. I do however have 10 + yrs experience of finance and how these disputes pan out. In the vast majority of cases where the APR breaches 50% the court rules in favour of the debtor on useary grounds (extortion). Companies are aware of this and try to elongate the time of standard accumalitive interest rate to extract as much as they can before actually going to court, that is even if they bother to do so as the cost of legal proceedings often exceeds the recouping of the debt and interest. They will send scary letter after scary leter to extract what they can.

 

If you borrow £300, get into bother with the loan, get some scary letters and pay £500 over a year, yet still have an outstanding balance no court in the land will fall favour to the lender in my experience. For exapmle that type of repayment equates to 66% flat return, most banks work on between 2-6%. They have had their return already and should not be persuing you for more.

 

Stop paying, request court action. If they refuse take them to the small claims court first. Document and date all correspondance. For £1000 or less they probably won't even turn up therefore you will automatically win. You may even get the original debt wiped.

 

Rule 1. The more aggressive the letter, the weaker the stance of the agressor. If they had an easy case they would simply go to court and win and save the cost of the letter. Ignore scary letters, acknowledge calm considered ones. Coloured print, usually red and official sounding legal firms are a favourite. Asquth Wallace and Squat of London etc etc, all BS, tin pots in an office in Aylesbury with a Mayfair po Box to make them sound good to those who have little experience of the law.

 

Rule 2. Seek advice. Go to the CAB or other debt management charity and discuss your situation. Avoid like the plague fee charging private debt management companies. They don't do anything you can't do for free and charge exorbitant amounts for it.

 

Rule 3. If you are struggling with debts stop digging. There are many charities and govt bodies who will help. The longer you wait to get help the bigger the problem will become.

 

Rule 4. Never ever take out a short term loan if you have any doubt at all you can repay it. These loans are structured in a way that means you borrow say £90 and repay £100 for a few days, which is attractive if you are in a hole. However, the rate they charge is in flat return (the way banks calculate return) is very high and the interest on the same loan over a year is astronomical. Add the fees for late payment as well and you are into the 3000% APR plus country.

 

Rule 4. Baliffs usually have an IQ lower than 6, very easy people to out smart. They do not have right of entry to your home despite what they say, the police do, baliffs don't, but an easier route to take is to prove to them all item of value in the place you are staying do not belong to you. Register your car to a friend or parent, declare yourself a lodger of your partner and produce paperwork to prove this, effectively become a legal lodger in your own home. They cant even touch the door bell if you have proof none of the items are yours.

 

Think of it like this, if you were renting a room, and in debt, and the private baliff came round to talk to you and reposess your stuff, if they took items belonging to your landlord, how long would their case stand up in court? It wouldn't. Assume this position. Baliffs like to make an enterance but hate heat, they won't do anything to encourage legal investigation. Stealing a third parties belongings to settle a debt not associated to the third party will cause them more than warm heat.

 

Lastly an finally, debt is scary, it shouldn't be. Its just numbers on paper. The creditors can't kill you, take your family, cut your gas off, put you in prison. If you are in debt, step back, use the FREE tools available to you, stop burying your head and face up to aggressive lenders with more force that they attack you. Believe me they hate it, they want passive idiots who keep paying, don't be one especially to the sharks.

 

If you can't manage your debt, go bankrupt. Thats what it is for. If you owe lots and have limited assets you have nothing at all to lose. Add up what you own, minus what you owe. If the net result means you can't recover easilly within 5 years to a balance of zero, go bust and start again.

 

I really hope this helps. Genulnely I do.

 

MoneyExploding