Did you have a Wonga Payday Loan BEFORE 2nd October 2014?
- You did!
Were you in arrears with repaying it?
- You did!
Well did you do anything about it?
- Hmmmmm, some people did, others did not!
OK what is this about, and why could it affect you if you were in arrears.
- All Wonga customers who were 30 days or more in arrears on their loans on the 2nd October 2014, will have the balance completely written off.
All Wonga customers who were in arrears of up to 29 days on the 2nd October 2014 will have the interest and charges on their loans wiped.
- Back in April, the Financial Conduct Authority (FCA) asked Wonga for some information about their relending rates, this is where a company lends to the same person on more than one occasion.
The FCA found that there was very strong evidence that Wonga wasn't taking "adequate steps" to assess customers' ability to make repayments.
Or was lending to often, to people who were not best placed to take these loans, and even worse they were not checking to make sure those they were lending to could afford to repay the loan.
- Approximately 330,000 people will have the balance of their loan written off, so they will no longer owe Wonga anything.
Approximately 45,000 people who are in arrears of up to 29 days will not have to repay the interest and charges on their loans. They'll also be given the option of paying off their debt over a longer four month period.
OK, OK I get the hint, but it didn’t apply to me did it?
Wonga SHOULD have written to all affected customers by Friday 10 October.
If you don't receive a letter but believe you should have, you should contact Wonga on 0800 042 0210, or if you're calling from a mobile ring 0333 003 0830.
Wonga adds that it will be handling cases even if a customer's debt has been sold on to a third party or they've entered into an individual voluntary arrangement or debt management scheme.
Repayments already made will not be refunded.
Coughs Gently - I THINK I may be entitled
- If you THINK you may be entitled to this but didn’t get a letter, then CALL THEM.
If you’re in a DMP (Debt Management Plan) and YOU GOT a letter, YOU must deal with the claim, your DMP provider will not have been told, and the sooner you do it the better!
If you’re in a DMP, and DIDN’T GET a letter, and THINK you should have, then YOU must call Wonga.
I took out a Wonga Loan on or after 3rd October 2014!
- The criteria for lending changed on that day, if you have a new loan, then it stands, you have to repay it.
Is it just Wonga, or does this apply to other Pay-Day Lenders?
- At present it only affects Wonga, but that may change in the near future. The FCA is looking at the other lenders.
What if I have pay-day loans with Wonga or other lenders and I cannot afford to repay it!
- Well you are NOT ALONE, if you can’t afford to make repayments, or if you find you are having to borrow more and more each month, please, please, PLEASE contact one of the following and talk to them in confidence, (Oh and these services are free!)
The Money Advice Service: Free & impartial money advice, set up by government that aims to signpost you to appropriate organisations that may be able to help you. You can contact them on 0300 500 5000
PayPlan: Is a national organisation with approaching 20 years of experience in dealing with all kinds of financial situations, no matter how bad they are.
Their advice and help starts with a simple phone call to 0800 280 2816
NDL: Is an organisation that advises you on solutions that are available to you, you can contact them on 0808 808 4000
StepChange (formerly CCCS) Is an organisation that advises you on available solutions with your financial problems. You can contact them on 0800 138 1111
Want to talk to someone confidentially, without obligation and free of charge?
Abbreviations used in DQF
My advice is guidance only, if you want the law then consult a lawyer!
(c) All Spelling mistakes are my own design, infringement of them may result me sulking!