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What Happens If You Don't Pay Your Wonga Loan Back On Time - The Fact
Wonga are on of the biggest payday loan companies around at the moment. They offer short term loans that are meant to tide people over till their next payday. But what happens if you can’t pay your Wonga loan on time? What charges or fees are you likely to incur? Will you be charged extra interest? In this article we tell you exactly what will happen if you miss your Wonga payment and can not afford to pay back the loan. We also give advice and help on what to do if this is the case.
Wonga are a very well established company that have been going for a while now. They offer simple easy payday loans that are easy to apply for and they say you will have the money in your account within a few hours. Problems start though when people miss the payment deadline. Wonga have come in for some severe criticism as to how they handle customers who do not pay their debt off, so now we are going to look at what happens if you do miss your payment date with Wonga.
What Wonga Say About Missed Payments
So first of all let’s take a look at see exactly what the company say will happen when you miss a payment. According to the Wonga FAQ’s if they try to take the money out your bank account as agreed and the funds are not available then they will first of all they will attempt to contact you that day to arrange for payment to be made. If they can not collect the payment by 5pm on the agreed date then you will incur a £20 fee. On subsequent days Wonga will keep trying to get in touch with you and arrange for you to make the payment, this will continue for 60 days. In that time interest will continue to be added to your repayment.
At the end of 60 days if there has been no payment made Wonga will pass your debts on to another company who will take things from there. If this is the case they will pass on your details to other companies so that you have a history of bad debt. Wonga state that they will do everything they can to help you pay your loan back to them as quickly and as easily as possible.
What That Can Mean For You
So what does that all mean? If you do miss your payment date how much is it likely to cost you? The fact is that Wonga do not charge massive interest on their loans if you pay them back on time, but if you miss that is when things start to go wrong. Wonga do not tell customers how much interest they will charge you per day over that 60 day period, however it does seem to be rather a lot! Even if you make the payment a day late you will get slammed with a £20 fee as well as some interest, so obviously things can go wrong if you miss your payment.
If your circumstances have taken a turn for the worst and you are unable to pay anything then your debt will get passed on. This means you will be asked to pay the money back in instalments over a period of time. The problem with this is that by this time your bill will have grown in size. You could even be looking at paying back double what you were originally supposed to be paying back, quite a scary prospect. So now we have seen what the company says and what it all means, what is the reality? Well let’s have a look at what some customers have said happens when they can’t pay back their Wonga loan.
More Info On Wonga
- Short Term Payday Loans From Wonga - Wonga Reviews &
A review of Wonga as well as a look at interest rates.
If you look around the internet you will find various complaints aimed at Wonga. Often these are just careless people who have gotten themselves into financial difficulty. They are now in a panic as they have massive debts and no means to pay them. So here are a few examples of what can happen if a payment is missed. One customer borrowed £600 and with interest had to pay back £777. However he missed his payment date and after ten days his balance had risen to £917! That’s £140 extra interest they were charging for just ten days. If that were to continue for another 50 days the results would be very frightening.
Another case that we found was where one man had borrowed £400, the total he was due to pay back was £525. Again he had missed the payment date and unlike the previous case he had just ignored warnings and phone calls. Now two months down the line he was told he owed Wonga £946. He was complaining of frequent phone calls, text messages and visits to his home. He had apologised and tried to pay the money back in smaller instalments but he claimed Wonga would not cooperate. Then he claimed that a month later his balance had risen to over £1400, he was asking for advice as he was really scared and had no way to pay back the money.
Another problem that has risen it’s head is the rollover. A rollover is basically where you take out another loan to pay your original debt, this may seem like a good idea at the time but it basically puts you into more and more debt. If you can make the payment for your rollover loan then this is a viable option, but otherwise you should avoid taking the rollover loan.
Despite these horror stories there are some positive testimonies that come from Wonga customers who have not paid their loan on time. On a few occasions it seems that Wonga have reversed the £20 charge if their has been a legitimate reason why the payment has not been successful. If you contact Wonga and do everything you can to put matters right it seems that they are quite helpful.
If you do find that you can not pay your loan off on the date you have given Wonga you will find that you do start to incur charges. The worst thing you can do at this point is go into hiding. The best advice is to keep in contact with Wonga and work along with them to pay your loan off as quickly as possible. If you do this then the charges should be smaller and you should not have to deal with any bully boy tactics. However, fail to pay and then fail to stay in contact with Wonga and you could find yourself in some very serious debt.