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Wonga Receive Compliance Notice from NCR

The NCR has issued a Compliance Notice to Wonga Finance SA (Pty) Ltd for breaches of the National Credit Act. This follows an investigation by the NCR into allegations and concerns about Wonga.

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The NCR investigation  revealed that:

 

 

Wonga have not been obtaining either sufficient  proof of consumers’ income and living expenses when they apply for loans or sometime even any supporting information from consumers to  verify their income and household expenses to check if they can actually afford the credit. This is a form of what is called Reckless Credit.

Wonga apparently have also not been keeping good records of their affordability assessments (when they do them), which later make it impossible for Debt Counsellors investigating possible reckless credit to see if they (Wonga) thought the consumer could afford the loan. This also works against Wonga as it also points to possible reckless credit granting and is in contravention of the requirements of the NCA.

Another issue is the illegal practice of having consumer pre-sign consents judgments (in the wording of the contract) and change of jurisdiction (away from where consumers live or work)

Wonga now have to be audited and submit a report to show how they will comply with the notice and set these things straight or they face further action from the NCR and NCT.

 

 

 

Naughty, Naughty