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Fake legal letters “callous intimidation” says Citizens Advice

25 June 2014

Citizens Advice has said the sending of fake legal letters chasing payday loan debts amounts to “callous intimidation.”  The Financial Conduct Authority has ordered payday lender Wonga to pay £2.6 million in compensation after it was found to have sent letters chasing debt repayments from legal firms that don’t exist.

Citizens Advice Chief Executive Gillian Guy said:

“Fake legal letters hounding people in debt is callous intimidation.  This latest revelation of payday lending practices is further evidence how out of control the industry has become.  It is only fair the FCA makes Wonga compensate people who have been put under tremendous financial and emotional pressure because of these letters.  

“Irresponsible payday lending has been a scourge on borrowers looking for a short-term loan to tide them over.  People have been coming to Citizens Advice because payday lenders are harassing them, taking more money than they owe and chasing people for debts they didn’t take out.  It is really important the FCA uses the powers it has to wipe out the horrendous practices used by many payday lenders.”

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.