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4x more Wonga compensation claimants than expected

The Financial Ombudsman Service has told the Treasury Committee that at the point that Wonga went into administration in August 2018, there were “about 10,500” consumers who had complaints open about the payday lender but were unable to have their complaints resolved.

Many of the complaints stem from Financial Conduct Authority regulation introduced in 2014, which brought in an affordability criteria to consumer credit activities. Those given loans that they were unable to afford can complain to the FOS to get their money back, including interest, charges and further compensation.

The administrators have pledged to:

  • set up a portal for customers to make claims directly online, although there is currently no go-live date
  • advise customers that using a claims management company won’t accelerate the claims process, and may expose them to charges that will be deducted from any final payment they might receive
  • work to ensure appropriate support for vulnerable customers.

Read Grant Thornton - Statement to the UK Parliament Treasury Committee