Wonga no longer

[vetran]

I have to say as horrified as I was with the rates Wonga were offering I don't think this is right either to be fair. I know they took the piss and I'm as glad as anyone to see the back of them for that but the claiming thing just doesn't sit right either.

That said I don't think you can compare it to PPI. That's all about offering an insurance product that wasn't fit for purpose in good percentage of cases. For many it did and it wasn't miss-sold so I don't agree they should (and I believe can't) claim it back either. That's different to the Wonga mess I believe.

The basis of the PPI scandal was that they wouldn't loan to you unless you took their insurance. It wasn't optional but they made that very clear verbally. A couple of lenders tried it on with us.

[northernladuk]

The basis of the PPI scandal was that they wouldn't loan to you unless you took their insurance. It wasn't optional but they made that very clear verbally. A couple of lenders tried it on with us.

Well that wasn't the case for my other half. Two loans from Black Horse, one with PPI and the other wasn't. Although they had all the facts in the loan documents about her then other halfs part time job and income they sold them PPI when he wasn't even eligible to claim as per the T&C's.

I didn't anything about not taking a loan unless you took their insurance although I can imagine it happened. That's not the root of the miss-selling scandal though. What they sold, optional or not, was not fit for purpose in most cases.

[vetran]

Well that wasn't the case for my other half. Two loans from Black Horse, one with PPI and the other wasn't. Although they had all the facts in the loan documents about her then other halfs part time job and income they sold them PPI when he wasn't even eligible to claim as per the T&C's.

I didn't anything about not taking a loan unless you took their insurance although I can imagine it happened. That's not the root of the miss-selling scandal though. What they sold, optional or not, was not fit for purpose in most cases.

Seems now anyone who took PPI is pretty much guaranteed a payment under the Plevin Ruling.

https://www.moneysavingexpert.com/re...urance/#plevin

[northernladuk]

Seems now anyone who took PPI is pretty much guaranteed a payment under the Plevin Ruling.

https://www.moneysavingexpert.com/re...urance/#plevin

It appears so. It was so badly handled it seems a fair assumption they were virtually all miss-sold.

[Hobosapien]

The best news in this respect was the 2015 legislation preventing the "infinite interest" scenario, where the lenders can "only" receive double the capital originally lent as total repayment.

Does that apply to all consumer loans or only specific short term ones?

i.e. Mortgage rates wouldn't be allowed above 6.5% over a typical 25 year term if same rule applied, so an inadvertent hard cap on interest rates. Though if interest rates rose to anywhere near that percentage many indebted folk would be smoke long before then.

[LondonManc]

Does that apply to all consumer loans or only specific short term ones?

i.e. Mortgage rates wouldn't be allowed above 6.5% over a typical 25 year term if same rule applied, so an inadvertent hard cap on interest rates. Though if interest rates rose to anywhere near that percentage many indebted folk would be smoke long before then.

Short term only based on this:
https://www.fca.org.uk/news/press-re...payday-lenders

[barrydidit]

The term you’re looking for is ‘short term high cost credit’ which also covers product terms between 30 and 365 days, so not just payday.

[LondonManc]

The term you’re looking for is ‘short term high cost credit’ which also covers product terms between 30 and 365 days, so not just payday.

HCSTC to be pedantic