Published on October 7th, 2014 | by FinanceLoophole0
Can’t Pay Payday Loans – Get it written off instead!
Due to recent issues raised at Wonga, payday loans could be written off for up to a million people even though Wonga founder walked away with a £4 million payoff when he left. Alright for some I say!
- Wonga recently refunded £220m debts to 330,000 people it had on it’s books who could not pay back their loan
- Wongas problems could now open floodgates with other lenders
- This is happening even though Wonga’s founder sold a £4million stake back to the lender
Cant Pay Payday Loans – payment refunds available
Ask yourself – Did your payday lending make your personal finances more difficult or impossible to manage? Then you may be able to make a claim against an “unaffordable” payday loan lender. Up to a million borrowers from payday loan companies could be in line for a refund, it was claimed today.
Wonga was ordered this week to refund £220 million in debts to it’s 330,000 customers who took out loans they could not afford to repay. This is in spite of tougher lending criteria imposed by the Financial Conduct Authority insisting that loans can only be given to people who can demonstrate they can afford the repayments.
How Does This Affect You If You Cant Pay Your Payday Loans?
Industry watchers are now saying that the case with Wonga could be opening the floodgates for this to be applied to other lenders. Potentially up to 1/5 of the estimated 5 million people who have taken out payday loans in the UK (not just from Wonga) in the past six years could be poised to benefit from this potential windfall.
This ‘broad brush’ claim has been made by Damon Gibbons on behalf of the Centre for Responsible Credit, which is campaigning for similar instructions the Financial Conduct Authority has given to Wonga to come to similar agreements with other payday lending firms.
Mr Gibbson told the Sunday Mirror that the regulator should look back at cases up to six years old, which meant ‘at least a fifth of those who have taken out a payday loan in the last years years would be affected’ if the problems at Wonga were repeated.
The ‘broad brush’ claim was made by Damon Gibbons of the Centre for Responsible Credit, which is campaigning for the Financial Conduct Authority to come to similar agreements with other firms.
He told the Sunday Mirror the regulator could look back at cases up to six years old, which meant ‘at least a fifth of those who have taken out a payday loan in the last years years would be affected’ if the problems at Wonga were repeated.
How Does This Affect My Payday Loan
Were you lucky enough to be one of the people getting a payout from Wonga – that is great. Don’t spend it all at once!
You are more likely to be the customer of one of the other payday lenders it is still uncertain if this is going to have an impact on your lender.
If you have problems paying your payday loan, try to get help as soon as you can – we have provided some information on how to get out of payday loan debt you may find helpful – this is no time to sit back and wait for something to happen as it may not. So be warned.
What is certain is that if you have an existing loan from a payday lender make sure that you keep up the repayments or it could land you in more debt.
Get help sorting out a payday loan repayment get help now – see details here fill in your details and they will be able to see if you qualify to get a payday loan refund. They will also help you work out a suitable repayment plan and help you deal with your payday loan company to take the worry out of your payday loan repayments.
Payday Rules On Unaffordable Loans
You can find out more about what the FCA thinks are unaffordable payday loans by looking at their website. Payday loan lenders should take special care where the consumer is ‘vulnerable’ – for example, older consumers or those with mental health difficulties. It may be easier in such cases to find that the payday lender has acted irresponsibly when considering the case where a lender is classed as ‘vulnerable’.
If you want to make a complaint against your payday loans company because your think they lent money to you irresponsibly – visit the finacial ombudsmans website.
What our politicians are saying about people who can’t pay their payday loans
MP Stella Creasy (Labour), has campaigned for a number of years against payday lenders, she says:
‘Wonga is not the bad apple – the industry is a rotten barrel.
‘There have been 5 million people borrowing from payday lenders and it was about a fifth of Wonga customers that were affected.
‘There could be many more people who have been lent money without the companies knowing or caring they they could pay it back.’
‘I would be gobsmacked if the Financial Conduct Authority weren’t applying the same lessons that they’ve already done to other lenders.
This follows on from recent business returns from Wonga that their stocks had fallen by 53 per cent following its self inflicted ‘fake letters’ scandal in June.
The firm had been caught sending letters to thousands of customers from non-existent law firms threatening customers with legal action if they did not pay their loans imediately.
Following £220 million payout to customers earlier this week, Wonga’s new chairman Andy Haste said:
‘When I joined Wonga I was made aware of concerns the FCA had already expressed around affordable lending, concerns which I shared.
‘I committed to ensuring our lending is conducted in a responsible and transparent manner, delivering the best outcomes for our customers.
‘I also said this would lead to a tightening of Wonga’s lending criteria and we will now be accepting far fewer applications from new and existing customers.’
It’s just a case of wait and see how this impacts on the greater payday loan community.