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Wonga


Jonathan Kay

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FCA report, includes:

The failings, which took place between October 2008 and November 2010, saw Wonga, and other companies within its group, use unfair debt collection practices which put customers under great pressure to make loan repayments that many could not afford.

 

During this time, Wonga sent communications to customers in arrears under the names “Chainey, D’Amato & Shannon” and “Barker and Lowe Legal Recoveries”, leading customers to believe that their outstanding debt had been passed to a law firm, or other third party. Further legal action was threatened if the debt was not repaid.

 

In fact, neither Chainey D’Amato & Shannon nor Barker & Lowe existed and Wonga was using this tactic to maximise collections by piling the pressure on customers.

Nasty stuff, but did they commit a criminal offence? Analysis from UK Criminal Law Blog.

 

Jonathan

 

Edited by - Jonathan Kay on 26 Jun 2014 10:52:55

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Didn't the new Archbishop of Canterbury get involved in this and the general damning of payday loan companies and was found that either his current employers or previous ones he worked for were in cahoots with Wonga?

I'm not a fan of these companies but they do seem to fill a gap in the market that is needed but condemned by many.

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Quoting TobyCoulson: 
Didn't the new Archbishop of Canterbury get involved in this and the general damning of payday loan companies and was found that either his current employers or previous ones he worked for were in cahoots with Wonga?

I'm not a fan of these companies but they do seem to fill a gap in the market that is needed but condemned by many.

Archbishop Welby did condem the "payday lenders" for the interest rates that they charged and suggested that the Church could provide a competetive service, so that the Church might ‘compete them out of business’ with its own credit operation.

He did use Wonga as an example because they are the largest and most prominent of these companies, however they are probably far from the least ethical in the field.

(I have worked for the VC/PE company who finance Wonga, so have heard quite a lot of the inside story)

 

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P.S. the alliteration of "war on Wonga" is also an attractive turn of phrase, too. I'm not sure if the Archbishop used it or it came from the reportage (journalists and sub-editors have an eye for a nice headline).

 

Edited by - Golf Juliet Tango on 26 Jun 2014 13:56:29

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Quoting Golf Juliet Tango: 
Archbishop Welby did condem the "payday lenders" for the interest rates that they charged and suggested that the Church could provide a competetive service, so that the Church might ‘compete them out of business’ with its own credit operation.

He did use Wonga as an example because they are the largest and most prominent of these companies, however they are probably far from the least ethical in the field.

(I have worked for the VC/PE company who finance Wonga, so have heard quite a lot of the inside story)

And of course the church is ethical.

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OK Toby, I don't believe it is entirely ethical either but at least it tries hard and hurts it's financial position in doing so.

I would not say that of the "payday lenders".

 

I don't think anyone or organisation qualifies as perfect but some are better and some are worse.

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Quoting Golf Juliet Tango: 
OK Toby, I don't believe it is entirely ethical either but at least it tries hard and hurts it's financial position in doing so.

I would not say that of the "payday lenders".

 

I don't think anyone or organisation qualifies as perfect but some are better and some are worse.

And the church is amongst one of the worst.

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I love it that those Wonga customers who were overcharged will get a refund plus interest of 8%.

 

I would love it more if they got their money owed with interest of 5800% that Wonga charge on some loans. 😳

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