UK payday lender used fake lawyers to chase debts

Associated Press |

LONDON (AP) — Regulators have ordered Britain's biggest payday lender to pay 2.6 million pounds ($4.4 million) in compensation to tens of thousands of people for unfair debt collection practices.



Britain's Financial Conduct Authority said the company, Wonga, sent letters from non-existent law firms to customers in arrears, threatening legal action if they did not pay their debts. In some cases, the company even charged customers for administration fees for sending the letters.

The FCA said Wednesday that Wonga must compensate around 45,000 customers.

Wonga apologized for the wrongdoing, which took place between 2008 and 2010. It said "the practice was unacceptable and we voluntarily ceased it nearly four years ago."

The FCA said Wonga made nearly 4 million loans to more than 1 million customers in 2012.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
SNFRY Sinofert Holdings Ltd. ADR 5.72 0.00 0.00 0

Comments

Emerging Growth

PixarBio Corp

PixarBio Corp is a specialty pharmaceutical/biotechnology company focused on pre-clinical and commercial development of novel neurological drug delivery systems for post-operative pain.

Private Markets

Knightscope

Autonomous security robots providing advanced detection capabilities at $7 per hour - aiming to define the future of security. Help #StopTheViolence.

8tracks

Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.