Payday Lending: Wonga Compensates Debtors For Fake Solicitor Letters
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Wonga Advert Wonga, the leading payday loan lender in the UK, has been recently asked by the Financial Conduct Authority (FCA) to pay £2.6 as compensation for sending fake solicitor letters to debtors. The letters which were sent from non-existent law firms threatened defaulting customers with legal action unless they repay their loans immediately. It is estimated that about 45,000 of Wonga customers were affected by this scam and would benefit from this compensation. Opinion however is divided over whether the FCA has done the right thing for consumers by imposing this heavy fine on Wonga. Some people have wholeheartedly welcomed the position taken by the FCA against Wonga. For them, threatening debtors with fake legal action as Wonga has done can have unintended consequences on the debtors. The threat of legal action against debtors, for example, can lead many of them to be over worried about their debt and have sleepless nights. It can also lead debtors to get into m