Wonga to pay out £2.6m compensation to customers

The payday loan company Wonga has been ordered to pay out over two million pounds in compensation to customers over "unfair and misleading debt collection practices."

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Wonga apologises 'unreservedly' for debt collection tactics

The payday loan company Wonga has been ordered to pay out over two million pounds in compensation to customers over "unfair and misleading debt collection practices."

Wonga contacted customers in arrears under the names Chainey, D'Amato & Shannon and Barker and Lowe Legal Recoveries threatening legal action if the debt was not repaid.

Neither of these firms existed and Wonga was using this tactic to maximise collections by piling the pressure on customers, the Financial Conduct Authority said.

Wonga has apologised "unreservedly" for the failings, which took place between October 2008 and November 2010.

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