Wonga are to write off £220m of your debts
Not only are Wonga forking out loads of money because they made up some law firms and sent threatening letters from them, they're also going to be writing off £220m of debts for 330,000 customers.
It looks like the payday lender is trying to cosy up to regulators and those of you with loans in arrears that wouldn't have been signed-off under Wonga's new check, will have their debts written off by the company.
Another 45,000 customers in arrears will not have to pay interest on loans. All customers will be notified by the 10th October.
Wonga's chairman Andy Haste, says that a review of lending practices had shown the "real and urgent" need for changes at the firm. Now that there's new rules in place, which are more strict that would mean "accepting far fewer applications from new and existing customers".
"We want to ensure we only lend to those who can reasonably afford the loan in question and during my review, it became clear to me that this has unfortunately not always been the case," he said. "I agreed with the concerns expressed by the FCA and as a consequence of our discussions we have committed to taking these actions."
In a statement, the FCA said Wonga's changes were brought about by a "voluntary agreement" between the lender and regulator. This will be a short, sharp shock to everyone in the payday loan industry.
"This should put the rest of the industry on notice," said Clive Adamson, director of supervision at the FCA. "They need to lend affordably and responsibly."
From now on, Wonga and other payday loan companies will have to appoint a "skilled person" to monitor lending decisions, who will then report back to the FCA.