Banks Using Wonga-Style Debt Collection Tactics

Banks Using Wonga-Style Debt Collection Tactics

MORTGAGESTRATEGY – Major high street banks are using Wonga-style debt collection tactics by sending customers letters chasing for payments seemingly from third-party firms.

Barclays, Lloyds Banking Group, Halifax, Royal Bank of Scotland and HSBC are among the banks that have sent customers letters that look like they are from unattached third-party firms when they are actually from their in-house legal departments or other subsidiaries.

According to This is Money, the letters give the impression that the debts have been passed onto third parties for collection.

Last week, payday lender Wonga was ordered to pay £2.6m to around 45,000 customers after the FCA uncovered misleading debt collection practices at the payday lender.

Wonga had sent letters from non-existent legal and debt collection firms to customers facing arrears on their accounts. The City of London police are investigating the matter.

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banksDebt CollectionMortgagesWonga