- Wonga had a total of 443,000 complaints
- Average compensation of £1,200
- Total compensation cost of £460million
- Only 4,3% ever received by consumers
Rise and fall of Wonga
[/list][list style=”2″ icon=”icon-check”]2014 claims cost £18m[/list][list style=”2″ icon=”icon-check”]Did you have evidence of recent applications for credit or previous problems on your credit record? Guarantor loans are specifically targeted at those with bad credit scores, however, the lender should have been conscious of whether your situation appeared to be worsening.[/list][list style=”2″ icon=”icon-check”]2015 FCA bring in price caps[/list][list style=”2″ icon=”icon-check”]2015 reports loss of £80m[/list][list style=”2″ icon=”icon-check”]2018 collapsed into administration [/list][list style=”2″ icon=”icon-check”]2020 Total of £23m paid out to over 400k people (4.3% of total compensation owed)[/list]
Wonga Compensation, What’s it all about?
Wonga loan came under scrutiny for their potentially soft lending criteria and affordability checks. Admitting to this, Wonga started settling redress issues in 2014 paying out a total of over £18m
Customers who believe that they were mis-sold a Wonga loan were able to claim any interest paid plus an additional 8% compensatory interest . This is only on the basis that the individual struggled to pay back or had to use top-ups or subsequent loans to pay off their loan.
Wonga are not the only company to fall fowl of compensation claims, the likes of Quickquid, Wagedayadvance and Sunny fall into administration, the need for more responsible lending has been highlighted and further opportunities to pursue claims have arisen.
Can i still claim against Wonga?
Unfortunately not, the administration has been resolved and compensation deadline passed. However if you have had loans from other payday lenders, or a guarantor loan you may still be able to claim.
Whilst you may have really needed the loan at the time, you may have found yourself in a worse financial position as a result and the loan should not have been granted in the first place.
If you already had a loan with a lender and needed to borrow extra money, you may have been given extensions or top-ups, without adequate checks, only to put you under more financial pressure.
Amigo loans for example have put aside over £100million to address compensation claims.
An Overview of Guarantor Refunds & Complaints
The first thing to consider when reviewing the eligibility for a guarantor loan complaint is whether a loan was affordable before given to you.
In short, the appropriate definition of affordable is whether or not after repaying it in installments, on time, you have money left over to pay your bills to avoid further lending.
To summarise, if you had to borrow more money or became behind with bills as a result of your guarantor loan repayments, you have grounds to make an affordability complaint. This route is available regardless of whether you are still paying the loan, have stopped paying the loan and are relying on your guarantor or even if the loan has been repaid.
If your affordability complaint is successful there are three potential outcomes. Should you still owe money, your interest is removed and you simply repay back what you borrowed. If your loan has now been repaid you will receive a refund of the interest in addition to 8% of the amount of your statutory interest.
We work on a no win no fee basis. We charge 36% (30% + VAT) on any successful claims of the total refund received from your lender If you cancel our service without our agreement after 14 days and after we submit your claim you will be liable to pay our full success fee should your claim be successful. You do not need to use our services to make a claim against your lender(s). It’s free to claim compensation from financial companies if you have lost money from a mis-sold financial product. You can do this yourself directly with the lender(s) and even if they reject your claim you can still take this to the Financial Ombudsman Service http://www.financial-ombudsman.org.uk. If you aren’t sure how to make the claim, you can get free, impartial advice from consumer organisations.
Forces Compare has partnered with Clear Legal Marketing Limited to offer its clients the opportunity to reclaim compensation for mis-sold guarantor loans. Clear Legal Marketing Limited is a Claims Management Company, (registered number 07933243) Ltd whose registered address is Unit 115-119 Timber Wharf, 42-50 Worsley Street, Manchester M15 4LD and who are Regulated by the Financial Conduct Authority. Its registration is recorded on the website https://register.fca.org.uk. Reg No: 833090, Registered with the Information Commissioners Office. Reg No: Z3370717 All calls to Clear Legal Marketing Ltd are recorded in line with the FCA requirements