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What are your rights as a debtor to a loan organisation?

In these current difficult economic times, many small business owners are not only seeking loans from their banks, but turning to independent loan organisations.  On such organisation, Wonga has recently been criticised by the Office of Fair Trading (OFT) for sending customers letters which falsely accused them of committing fraud.  The customers in question had either fallen behind on repayments and entered a debt management plan; or had contacted their bank requesting a previous payment to Wonga to be retracted.

Wonga was also alleged to have customarily told customers working in the public or financial sectors that by being in debt they were breaching their terms of employment.

The OFT has told Wonga it may face a fine of up to £50,000 every time it adopts aggressive or misleading practices with its customers.

Wonga argues that the alleged incidents were few and isolated, and that procedures are now in place to ensure similar problems to do not occur in future.

If you have any queries relating to your legal rights as a customer of a loan organisation, please contact Jo Tall at jo@offtoseemylawyer.com.

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