Pay Day Lender to write off loans

Wonga has agreed to write off £220 million pound of outstanding debts following discussions with the Financial Conduct Authority (FCA). One of many so called Pay Day lending companies that loan short term money at astronomical rates, their methods of chasing outstanding loans have come under scrutiny using fake legal companies to scare their clients into paying up.

The whole industry of 200 plus companies is being investigated by the FCA who offer the carrot of quick money for those who do not have access to funds elsewhere and find themselves paying interest rates up to 5,000 pct. At these punitive rates, a small loan turns into a huge burden very quickly and Citizens Advice Offices and consumer help organisations have been inundated by tens of thousand of individuals being hounded for payments they can no longer afford to make since the recent growth of this predatorial industry.

The whole industry has been a train wreck waiting to happen and at least in this instance some 330,000 individuals have been let off the hook and this is from the client base of just one Pay Day lender.