Payday lender Wonga was last week forced to pay compensation after it emerged that the company had sent letters to its customers, disguised as being from a debt collection agency, chasing people for repayments.
Citizens Advice Chief Executive Gillian Guy said:
“It is dishonest of lenders to disguise letters chasing people for money as being from third parties. People who are heavily in debt are under immense financial strain and need to know where to go for help, not be harassed by bogus companies exerting undue pressure and in some cases charging them for it.
“It can be very distressing and intimidating for people in debt to receive letters from debt collectors. Debt collection letters must be clear about who the actual letter is from, what the debt is for and how borrowers can get independent advice if they need it.
“The FCA needs to carefully examine cases where debt collection process aren’t clear and consider whether compensation for customers is appropriate.”
