25 June, 2014
Following today’s announcement that Wonga has agreed to compensate customers for unfair debt collection practices, Mike O’Connor, Chief Executive of StepChange Debt Charity, said:
“For too long payday lenders have subjected consumers to unfair, misleading and distressing practices and today’s announcement represents a victory for a small number of those consumers.
“It’s time the payday loan industry entered the 21st Century in terms of treating customers fairly. If they cannot, they should leave the market, or be pushed out of it.
“I hope this will be the first of many similar actions as the FCA continues its efforts to clean up the payday lending industry and create a short term credit market that meets consumers’ needs, but crucially treats those in financial difficulty fairly.”
We urge anyone who is worried about short-term loans to seek free payday loan advice as soon as they can.