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Wonga customer wins case over interest and fees | Wonga customer wins case over interest and fees |
(about 1 hour later) | |
Payday lender Wonga will refund the fees and interest charged to a customer whose outstanding loan has already been written off. | Payday lender Wonga will refund the fees and interest charged to a customer whose outstanding loan has already been written off. |
In October, Wonga said it would cancel the debts of 330,000 customers after an investigation showed it had not carried out appropriate affordability checks. | In October, Wonga said it would cancel the debts of 330,000 customers after an investigation showed it had not carried out appropriate affordability checks. |
One of those customers whose debt was written off has successfully claimed for charges to be cancelled too. | One of those customers whose debt was written off has successfully claimed for charges to be cancelled too. |
Ami Jarman, 24, from Hertfordshire, took her case to the ombudsman. | Ami Jarman, 24, from Hertfordshire, took her case to the ombudsman. |
She had initially borrowed £100 to pay for a new car tyre but her debts soon spiralled. | She had initially borrowed £100 to pay for a new car tyre but her debts soon spiralled. |
"I was diagnosed with depression, which ultimately affected my work life, and my personal life," she said. | |
She was given loans worth £9,000 over four years, but said she ended up having to pay more than £11,000 after fees and charges were added. | She was given loans worth £9,000 over four years, but said she ended up having to pay more than £11,000 after fees and charges were added. |
"I should have been more aware of the fees and interest, but I also feel payday lenders should take more responsibility for themselves, and should not have lent me this money," she told BBC Radio 4's You and Yours. | "I should have been more aware of the fees and interest, but I also feel payday lenders should take more responsibility for themselves, and should not have lent me this money," she told BBC Radio 4's You and Yours. |
'Relief' | 'Relief' |
Although her existing debt was wiped out by Wonga, she decided to take her case about fees to the Financial Ombudsman Service after calculating how much money she had repaid. | Although her existing debt was wiped out by Wonga, she decided to take her case about fees to the Financial Ombudsman Service after calculating how much money she had repaid. |
Caroline Wayman, chief Executive of the Financial Ombudsman Service, who looked into Ms Jarman's case said there had been unfair treatment. | Caroline Wayman, chief Executive of the Financial Ombudsman Service, who looked into Ms Jarman's case said there had been unfair treatment. |
"Wonga are obliged to make sure loans are affordable, and that people are aware of the fees and charges," she said. | "Wonga are obliged to make sure loans are affordable, and that people are aware of the fees and charges," she said. |
"The Financial Conduct Authority [regulator] has been taking steps to improve this area of the lending industry, but more work needs to be done." | "The Financial Conduct Authority [regulator] has been taking steps to improve this area of the lending industry, but more work needs to be done." |
The ombudsman's ruling has come as a relief to Ms Jarman, a hospital care assistant, who had been borrowing from the company and many other payday lenders since 2010. | The ombudsman's ruling has come as a relief to Ms Jarman, a hospital care assistant, who had been borrowing from the company and many other payday lenders since 2010. |
"I've got about £4,000 still outstanding with other lenders, but since hearing from the ombudsman it feels like a huge weight off my shoulders," she said. | "I've got about £4,000 still outstanding with other lenders, but since hearing from the ombudsman it feels like a huge weight off my shoulders," she said. |
"It is not just for me. It shows that other people who possibly have more debt than me can get their money back too." | "It is not just for me. It shows that other people who possibly have more debt than me can get their money back too." |
A Wonga spokesman said discussions with the Financial Ombudsman Service about Ms Jarman's case, and how much would be repaid, were ongoing. | A Wonga spokesman said discussions with the Financial Ombudsman Service about Ms Jarman's case, and how much would be repaid, were ongoing. |
"We are keen that any individual in difficulty contacts us and we will do everything to resolve the situation," he said. | "We are keen that any individual in difficulty contacts us and we will do everything to resolve the situation," he said. |
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