Monthly Archives: June 2014

Payday Loan Lender Wonga Abuses Customers: Get Help

How to get out of your payday loans
Payday Loan Help & Relief

“Wonga, the UK’s biggest payday lender, has entered an agreement with the Financial conduct Authority (FCA) which will see it pay compensation of over £2.6m to around 45,000 customers for unfair and misleading debt collection practices.”

Wonga was founded in 2007 by Errol Damelin. As Damelin told the story, Wonga’s original goal was to “disrupt the short-term credit industry by providing transparency, exact control of amount and payment date, immediate access to funds, and no faxing or emailing documents.”

Obviously, Wonga’s management has strayed FAR from this mantra. These guys are bringing a tremendous amount of heat on the payday loan industry. Only a fool would send collection letters that appear to be from lawyers to borrowers. This craziness harkens back to the dark ages of the industry.

Now, Wonga owes 45,000+ customers cash. If this wasn’t enough, in April 2014, Wonga reported to the FCA that it had “discovered system errors relating to the calculation of the amount owing on customer accounts where fees, balance adjustments or the timing used to calculate interest were not consistently applied.”

This reminds me of my AT & T bill. Every month they make a billing mistake. Every mistake is in their favor. Every month I must call them for a correction. And every month I tell myself I’m going to change providers.

Finally, the FCA says, “Customers do not need to take any action: Wonga will be contacting those that have been affected by these issues shortly.”

Give me a break! If you borrowed from Wonga, GET ON THE PHONE!

Here’s the original FCA Press Release: Wonga to pay redress for unfair debt collection practices

 

Payday Loan Help: Get Out of Your Payday Loan

How to get out of your payday loans
Payday Loan Help & Relief

By: Royal Paine. I’ve been a payday loan collector and part-time author for 10+ years. I collect money. It takes a special personality to avoid taking the screaming, name calling, personal diatribes… to heart. In most cases, the borrower on the other end of the phone legitimately borrowed money from my boss. My employer does not trick people; although it’s fair to say, many of our payday loan competitors do.

After speaking with thousands of debtors I’ve come to the realization that today, consumers must finance basic household expenses with payday loan, car title loans, installment… you name it. Food, rent, gas, prescriptions have to be paid and the average consumer just doesn’t make enough money any longer to pay the bills.

This is just a sad fact of American life.

Small dollar loan providers don’t have to pick the bones of poor, downtrodden borrowers. Rather, borrowers seek out these loans. After years of refinancing their home, failing to get cost of living and wage increases, having their work-week hours reduced, student debt payments kicking in and all the other realities of reduced household income, there is only one answer left. Debt! Any way they can borrow money to put food on the table and a roof over their head.

Why do so many payday loan and car title lenders exist? Because there is HUGE demand for their products! Do you see buggy whip manufacturers at your local strip mall? No! Why? No one needs a buggy whip!

I’m Royal Paine. Do you have too many payday loans? Are you in “payday loan hell?” Get help with your payday loans. Get my book!