By John Glenday

Wonga has been hit by a £2.6m compensation bill after the payday lender was found to have written fake legal letters from fictitious lawyers in a bid to scare borrowers into stumping up outstanding loans.

The practice saw 45,000 customers issued with such letters between October 2008 and November 2010 with letters headed ‘Chainey, D’Amato & Shannon’ and ‘Barker and Lowe Legal Recoveries’,
threatening legal action if the debts were not repaid.

In some cases Wonga had the gall to add supplementary charges to outstanding debts to cover the cost of issuing the fake letters.

Clive Adamson, director of supervision at the Financial Conduct Read full story ›

Source: The Drum