FCA orders Wonga to pay £2.6m

Theophany · 25 Jun 2014 at 11:30

Source: Citywire

Wonder if those being repaid will be offered the chance to charge APR at 2600% or whatever it is. Seems like some sneaky, underhanded tactics to try and invoke fear in people, very malicious.

Terrier_Jimlad · 25 Jun 2014 at 11:35

Should just be closed down and the people responsible never allowed to work in the financial industry again - it's shocking. I feel deeply sorry for those unfortunate to have to turn to companies like Wonga

Theophany · 25 Jun 2014 at 11:37

What's more, as an IFA it can take hours and a load of paperwork to write an ISA for a client, whereas all these payday lenders can dole out thousands of pounds at insane interest rates within minutes.

And these shysters aren't regulated to anything like the same degree.

cheesyboy · 25 Jun 2014 at 11:37

Terrier_Jimlad said:
Should just be closed down and the people responsible never allowed to work in the financial industry again - it's shocking. I feel deeply sorry for those unfortunate to have to turn to companies like Wonga

Indeed. But who would you have them turn to after you have closed down Wonga and their like.

Sho · 25 Jun 2014 at 11:38

Just close them down.

DannyDrama · 25 Jun 2014 at 11:39

How did they expect to get away with that?! Surely a quick google of the company name would reveal all you need to know (or not in this case).

deuse · 25 Jun 2014 at 11:40

Terrier_Jimlad said:
Should just be closed down and the people responsible never allowed to work in the financial industry again - it's shocking. I feel deeply sorry for those unfortunate to have to turn to companies like Wonga

This.

Judgeneo · 25 Jun 2014 at 11:41

A utterly abhorrent practise, and we can only fine them 2.5% of their current profit...
I doubt the owners care that much.

Drizmod · 25 Jun 2014 at 11:41

Isn't this what a lot of private parking companies do? i.e threaten people with letters from fake solicitors?

dowie · 25 Jun 2014 at 11:42

good

the FCA (or FSA as it was) is a massively inept and rather slow regulator... though at least they sometimes get things done

Theophany · 25 Jun 2014 at 11:43

dowie said:
good

the FCA (or FSA as it was) is a massively inept and rather slow regulator... though at least they sometimes get things done

On a number of occasions 'inept' is overly charitable. 'Grossly negligent' would be more appropriate.

arknor · 25 Jun 2014 at 11:43

cheesyboy said:
Indeed. But who would you have them turn to after you have closed down Wonga and their like.

close EON as well...

I had a letter from them for the previous tenant saying in 2010 we accidentally may have lied to you about our prices when you switched to us and you may have been put on a more expensive package than you were already on..... I think there actual words are "we may have mistakenly compared you against the wrong package" and asking what rate I was on with scottish power.

I remember when I moved in here the meter was set to around 11p /kwh but when I informed them I was a new tenant the meter suddenly changed days later to like 14.5p /khw *******

30% of my daily electric bill is ******* standing charges too

jas72 · 25 Jun 2014 at 11:45

It's the way Thatcher and her party wanted it unregulated financial markets.

The conservatives are still fighting for it against the EU who want some clear regulation.

dowie · 25 Jun 2014 at 11:49

Judgeneo said:
A utterly abhorrent practise, and we can only fine them 2.5% of their current profit...
I doubt the owners care that much.

probably not, the dubious letters probably helped them recover a significant amount of bad debt - most likely just worried about any PR implications...

Theophany · 25 Jun 2014 at 11:50

jas72 said:
It's the way Thatcher and her party wanted it unregulated financial markets.

Don't really see what that has to do with anything here, ignoring the fact that it's fairly inaccurate to suggest we have unregulated financial markets.

pitchfork · 25 Jun 2014 at 11:52

Theophany said:
Don't really see what that has to do with anything here, ignoring the fact that it's fairly inaccurate to suggest we have unregulated financial markets.

She stripped away a large amount of regulation though, all so a few yuppy ***** could make a quick buck.

Theophany · 25 Jun 2014 at 11:54

pitchfork said:
She stripped away a large amount of regulation though, all so a few yuppy ***** could make a quick buck.

I still don't see what this has to do with anything mentioned in the article.

Do you know anything about the retail world of finance or are you just looking for an excuse to dribble politics?

dowie · 25 Jun 2014 at 11:57

jas72 said:
It's the way Thatcher and her party wanted it unregulated financial markets.

deregulation/the big bang != unregulated

and I'm not sure how removing the distinction between market makers and brokers has anything to do with retail loans?

The conservatives are still fighting for it against the EU who want some clear regulation.

What specifically are they fighting against that is relevant to this case?

MookJong · 25 Jun 2014 at 12:04

I think people will look back on these loan companies in the future and wonder how it was ever allowed to happen.

The failure of the government to impose much stronger regulation on this issue as well as tax avoidance loopholes is very sad.

One More Solo · 25 Jun 2014 at 12:05

I think Wonga and the like fill a gap in the market, but the lack of regulation around the whole payday loans industry is very dubious. Since one of the FCA's stated goals is ensuring customers are treated fairly, this seems like one of the most likely sectors of the retail finance industry to screw its customers on a regular basis. Bizarre that they are so soft touch.