Debtors may not have to pay out wedge of Wonga

Council help Wonga payday loans customers
Council help Wonga payday loans customers

West Lothian Advice Shop is urging people who may be affected by the recent changes announced by payday lender Wonga to get in touch.

Wonga has made a voluntary agreement with the Financial Conduct Authority (FCA) which may result in debts being written off or interest and charges being frozen.

The FCA has agreed an approach with Wonga, as an interim measure, for its customers who may not have had appropriate checks on whether they could afford to take out a loan.

It has been suggested that as many as 330,000 customers who are 30 days or more in arrears, will have the balance of their loan written off. It is also expected that an additional 45,000 customers who are 0 to 29 days in arrears will be asked to repay their debt without interest and charges.

Or they will be able to pay off their debt over an extended period of four months.

A spokeswoman for West Lothian Advice Shop said: “Following a review of Wonga.com’s affordability criteria, some loans may have been granted which would now be viewed as unaffordable.

“We understand that Wonga is planning to write to customers who are involved from Friday, October 10 onwards.

“But it is important that customers continue to make payments until they are told what to do by the company.”

For more details, call the Advice Shop on 01506 283000.