Thousands of Wonga customers have yet to receive compensation they are due from the controversial payday lender, MPs were told today.
Chief credit officer Nick Brookes, who joined Wonga just two months ago, told the Treasury Select Committee the firm had only contacted 27,000 out of 45,000 in-arrears customers who were sent letters from non-existent law firms chasing their debts.
Brookes said customers were proving “challenging” to contact because details had changed from when applications were lodged online. Some 5,000 have responded to compensation offers and 99% have accepted.
Wonga has said that the tactic, designed to make customers believe debt had been passed to law firms or debt collection agencies, ended four years ago.
The company has also shaken up its management, and culled its controversial puppet ads, pictured. Brookes said: “The letters… were wrong. I personally apologise to all of our customers for that happening.
“There is only a very small percentage wanting to have an independent look at that [compensation]. There is a big process of change going on at Wonga.”
Brookes added that many complaints were now from people denied loans because of its tougher lending criteria.
