Wonga, the controversial payday lender, is planning a thorough relaunch of its image. Andy Haste, its new Chairman, has pulled the plug on its popular “string puppets” television adverts within his first month in charge amid plans to re-invent the company as an “accepted and respected” business.
This should come as no surprise to anyone who has been following Wonga’s progress over the last few years. They have for some time been seen as the whipping boy for all that is bad with pay day lending. Recent revelations that it had been sending out fake demand letters to its customers who were having problems repaying loans simply added to its bad press. Indeed such was the disgust at this “tactic” that they have been ordered to pay over £2.5 million in compensation to its affected customers.
They are not the only organisation accused of using such tactics. The Student Loans Company was found to have sent out misleading demand letters to graduates recently, creating the impression that they had instructed a third party to recover the debt when in fact they had not. Whether they will have to compensate the thousands of borrowers affected by the letters remains to be seen.
These recent scandals highlight the risk to companies who independently try and recover their debt often using dubious tactics. These companies would be better off instructing a reliable law firm which has the knowledge and expertise to recover their debt in an efficient and professional manner.
Here at Gilson Gray we have the expertise, the people and the software to assist such organisations with the recovery of such debt. Should you wish to discuss instructing us please contact me as per the details below.
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The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.