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Law Society calls for Wonga probe Wonga: Police to re-consider Wonga investigation
(about 4 hours later)
Wonga should be investigated by the Met Police for "dishonest activity" in sending letters from fake lawyers, the Law Society has said. The City of London Police have confirmed they will re-consider opening a criminal investigation into Wonga.
The Society - which represents solicitors in England and Wales - said the payday lender's actions could have amounted to blackmail and deception. Previously they had ruled it out, saying the case should be left to the regulator.
But they said now the regulator's investigation had finished they would "be reassessing whether a criminal investigation is now appropriate."
Wonga sent letters from non-existent law firms to customers in arrears between 2008 and 2010.Wonga sent letters from non-existent law firms to customers in arrears between 2008 and 2010.
The call comes shortly after the City of London Police ruled out an inquiry. Earlier on Friday, the Law Society, which represents solicitors in England and Wales, called for an investigation by the Met Police for "dishonest activity" in sending letters from fake lawyers.
It said: "In March 2013 the Office of Fair Trading (OFT) met with the City of London Police to consider the case, with the view at the time being that the most appropriate course of action was for the OFT to continue to investigate as regulator focusing on but not limited to the Consumer Credit Act, Legal Services Act and unfair trading regulations." The Society said the payday lender's actions could have amounted to blackmail and deception.
CompensationCompensation
On Wednesday, the Financial Conduct Authority (FCA) said that Wonga had agreed to pay £2.6m in compensation to about 45,000 customers - an average of about £50 each.On Wednesday, the Financial Conduct Authority (FCA) said that Wonga had agreed to pay £2.6m in compensation to about 45,000 customers - an average of about £50 each.
An investigation by the regulator found that Wonga sent letters to customers from fake law firms called "Chainey, D'Amato & Shannon" and "Barker and Lowe Legal Recoveries", sometimes charging customers a fee for these letters.An investigation by the regulator found that Wonga sent letters to customers from fake law firms called "Chainey, D'Amato & Shannon" and "Barker and Lowe Legal Recoveries", sometimes charging customers a fee for these letters.
The plan was to make customers in arrears believe that their outstanding debt had been passed to a law firm, with legal action threatened if the debt was not paid.The plan was to make customers in arrears believe that their outstanding debt had been passed to a law firm, with legal action threatened if the debt was not paid.
The Law Society has now called on police to look at whether the company committed an offence of obtaining pecuniary advantage by deception and blackmail, as well as offences under the Solicitors Act.The Law Society has now called on police to look at whether the company committed an offence of obtaining pecuniary advantage by deception and blackmail, as well as offences under the Solicitors Act.
A spokesman for Wonga told the BBC News website that nobody from the company had been interviewed or had any contact with police since regulators started looking into the case in 2011.A spokesman for Wonga told the BBC News website that nobody from the company had been interviewed or had any contact with police since regulators started looking into the case in 2011.
He said the focus for the company now was to compensate customers who were affected.He said the focus for the company now was to compensate customers who were affected.