Payday Loan Redress Claims Higher Than Feared, MPs Say
Law360, London (March 12, 2019, 1:04 PM GMT) -- The number of customers unable to seek compensation after the collapse of payday lender Wonga because their cases fall outside the statutory redress scheme is four times higher than estimated, lawmakers said on Tuesday, with as many as 40,000 people at risk of losing out.
Approximately 10,500 borrowers had lodged complaints when Wonga went bust in August, the Financial Ombudsman Service told the parliamentary Treasury Committee in January. But they are not entitled to redress because high-cost, short-term credit companies such as Wonga are not covered by the Financial Services Compensation Scheme.
Now David Dunckley, chief executive of Grant Thornton UK LLP, Wonga’s administrators,...
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