The FCA said 45,000 customers of the UK’s biggest payday lender would be compensated after it found that letters threatening legal action from non-existent law firms had been sent to customers, in an attempt to boost collections by increasing the pressure on people in debt. In some cases customers had been charged for the letters.
The practice ended four years ago before the FCA had responsibility for payday lenders and credit, so it does not have powers to fine Wonga. Which? welcomed the tougher line being taken by FCA on irresponsible lending. The FCA stated that it “expects firms to pay particular attention to fair treatment of those who have difficulty in meeting their loan repayments”.
Following an investigation E.ON has agreed to pay £12m to vulnerable customers, after Ofgem found it had broken energy sales rules. E.ON has also committed to compensating any customer that it missold to, including automatic payments to some vulnerable customers.
Read more from Ofgem here.
The agreed redress package reflects the harm caused by E.ON’s extensive poor sales practices carried out between June 2010 and December 2013.
As part of this package E.ON has agreed to:
•Pay around £35 to 333,000 of their customers who are normally recipients of the Warm Home Discount. This redress package will benefit pensioners, disabled and low income families
•Additionally, make automatic payments to some vulnerable customers who may have been affected by E.ON’s poor sales practices
•Set up a dedicated hotline 0800 0568 497 and compensate all consumers that it missold to
•Write to around 465,000 customers it has identified through its redress work, informing them of how to get in touch to find out whether they were missold to.