Wonga update

In our July 2014 newsletter we reported that the payday lending firm Wonga had misled customers.  The company was ordered to pay £2.6m in summer 2014 to around 45,000 customers who had received letters demanding repayments from what turned out to be a fake law firm.

It has been announced that police will not be bringing any criminal charges against the company for this action.

The City of London police statement says: 'The central allegations were that Wonga had deceived its customers by sending letters falsely purporting to be from lawyers with the aim of recovering outstanding debts from customers.'

'After a thorough review of all the material gathered the City of London Police has concluded there is not sufficient evidence to progress a criminal investigation.'

Firms need to keep on top of debt collection and credit control issues but must do so in an open and fair manner.  If you would like to discuss these or other issues affecting your business, contact us.