17 Dec Inspite of the demise of Wonga, we truly try not to believe it is the end for the PayDay lending industry.
Additionally in June 2014, the Financial Conduct Authority (вЂFCAвЂ™) unearthed that WongaвЂ™s business collection agencies techniques had been unjust and ordered that affected customers be compensated. Wonga received criticism that is further regards to the FCA findings, which revealed that between October 2008 and November 2010, Wonga had delivered their clients letters purporting become from non-existent law offices called as вЂChainey, DвЂ™Amato & ShannonвЂ™ and вЂBarker and Lowe Legal RecoveriesвЂ™, to get funds from their store, with a few clients being charged when it comes to supposed вЂњlawyersвЂ™ feesвЂќ for these letters.
Following talks utilizing the FCA, Wonga consented to write down that which was considered to have been around in more than ВЈ220 million owned by 330,000 clients, after admitting to supplying loans to clients whom could perhaps maybe not manage to repay them. It really is now believed that the problems of Wonga are due to its very criticised lending methods, and that the inundation of client settlement claims invariably resulted in the companyвЂ™s collapse.
After the collapse of Wonga, it's recently come to light that the Church of England would be to fulfill to think about leading a buyout of the business.