Wonga loan write offs and your debts
Written by Tracey Davies on 7 October 2014
On 2 October, 2014 Wonga announced they will be writing off around 330,000 loans. 45,000 more will have their interest and charges removed. This has been agreed with the Financial Conduct Authority (FCA) that regulates the payday loan market.
The FCA decided that Wonga had given loans to some customers without checking if they could realistically pay the money back. From the 2nd October Wonga will agree additional requirements to their lending criteria to ensure all future loans are affordable.
Wonga has also committed to contacting all customers whose loans would not have been made had they been subject to the new affordability criteria.
Wonga has agreed to directly contact all customers impacted by the by 10th October
You can find out more information from the www.wonga.com or http://www.fca.org.uk/news/wonga-redress-unfair-debt-collection-practices
Will I get my Wonga loan written off?
If you have a Wonga loan at the moment you will affected in one of three ways:
- If your loan would have been approved with Wonga’s new affordability checks, nothing will change and you will have to pay your loan back as normal
- If your loan would have been refused using the new affordability checks and you were in arrears for up to 29 days on the 2nd October, the interest and charges on your loan will be cancelled. You only need to pay back the amount you borrowed and Wonga will give you four months to do this. This applies to about 45,000 Wonga customers
- If your loan would have been refused using the new affordability checks and you were more than 30 days in arrears on the 2nd October, your loan will be written off altogether and there’ll be nothing more to pay. This will happen to around 330,000 people
This ruling from the FCA only applies to Wonga loans. If you have a payday loan with any other company, you will not be affected.
How does this affect my Debt Management Plan?
If you have a debt management plan or an IVA with a Wonga loan included, we will need to change the amount owed or remove it from your plan.
You will hear from Wonga by Friday, 10 October. Please contact us after this time to let us know if the balance has been reduced or cancelled.
If you do not have a Wonga loan included in your plan you do not need to take any further action.
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