Payday lender Wonga to pay £2.6m for sending out fake legal letters

Wonga, the UK's largest payday lender, has been forced to repay £2.6m to customers by the Financial Conduct Authority (FCA) after the regulator found it sent fake legal letters to borrowers.

The lender, which charges huge interest rates on short-term loans, was found to have sent letters to customers in arrears from non-existent law firms, threatening legal action. In some instances, Wonga also added charges to customers' accounts to cover the administration fees associated with sending the letters, the FCA said. The lender has now entered an agreement with the regulator which will see it pay compensation of over £2.6m to around 45,000 customers for unfair and misleading debt collection practices. Clive Adamson, director of supervision at the FCA, said: "Wonga's miscon...