PAYDAY loan company Wonga have been told to clean up their act and stop
suggesting their customers are frauds.

The firm that provide short term loans at an interest rate of more than 4,000
PER CENT have been slammed for harassing borrowers by the Office of Fair
Trading.

The OFT found hundreds of letters and phone calls from Wonga suggested
customers who stopped repaying loans early had committed financial fraud by
breaching the terms of contract.

The correspondence also indicated that Wonga would contact the police unless
the customer resumed paying.

However, an OFT spokesman said there could be legitimate reasons for not
keeping up with payments, such as an individual entering into a debt
management plan.

David Fisher, OFT director of consumer credit, said: “We have acted to ensure
that Wonga do not behave this way again. I would like to make it clear to
businesses that they must not adopt aggressive or misleading practices with
their customers.”

Wonga have made more than four million loans since they were established in
2006. If they do not improve practices, they could be fined up to £50,000
for EVERY indiscretion and risk losing their licence to provide
credit.

A Wonga spokesman said they intend to appeal the findings, with the
infringements being “isolated occasions” more than 18 months ago.

He added they no longer use the phone script to chase collections and have
“put in place procedures to ensure communications cannot be repeated”.

The number of payday loans firms has soared in recent years but two-thirds of
people believe there should be a cap on high borrowing costs, a poll from
insolvency firm R3 found.

Sarah Brooks, director of financial services at Consumer Focus, said: “Payday
loan company marketing is very good at presenting the products as being
easy, simple and transparent.

“This action by the OFT shows that beneath the gloss, debt collection
practices can be woefully unacceptable.”

Ahead of a House of Commons vote on limiting the price of emergency credit,
Labour MP Stella Creasy said: “It shows the public overwhelmingly agree —
payday lending is a problem.”

The OFT launched a review of payday lending in February. They will announce
their findings later this year.

Boats moor value

HOMEOWNERS are increasingly swapping bricks and mortar for canal boats.

Around 15,000 now live on Britain’s waterways, many seeing it as a cheaper way
to get on the property ladder.

A new boat costs from £50,000, while the average UK property is £228,385.

But while traditional costs of council tax and utility bills might be avoided,
boat owners face mooring fees of about £3,000 a year, £700 for a licence and
£400 for fully comprehensive insurance.

The Residential Boat Owners’ Association suggest potential buyers try living
afloat first through a holiday hire boat — to get an idea of the restricted
space and see if they enjoy working the locks.

And Towergate Insurance have put together a first-time buyers’ guide covering
everything from the pros and cons of buying a new or used craft to general
maintenance, licences, moorings, training and insurance.

Karen Bridges, an office administrator from Bath, lives with her teenage
daughter on a 58ft canal boat. She said: “I moved in over two years ago, am
moored in the south and love our lifestyle.”

Bat burglars

A QUARTER of frightened Brits have their own approach to home insurance – by
stashing weapons under the bed.

Baseball or cricket bats, knives and even replica swords are some of the items
homeowners admit to keeping handy because of the threat of burglary.

A shocking 17 per cent of UK homes have been broken into with over half of
homeowners worried about future attacks, according to research from
financial comparison website GoCompare.com

It has led to three in every five Brits keeping doors locked all day – even if
they are in the house.

And to back the view that an Englishman sees his home as his castle, 91 per
cent feel they should be allowed to defend themselves against intruders with
lethal force.

Mark Greening of Gocompare.com said: “Home insurance can help you to replace
your possessions if you are targeted by burglars.

“It’s really not worth putting yourself or your family at risk when you have
home insurance to help you pick up the pieces.”

Small business heroes…

ASHLEY WINSTON, 36, from Ealing, west London, is founder of Palmdale Motors
Ltd (palmdale.co.uk).

Business: Palmdale Motors promise to take all the hassle out of buying
 a car, from family-friendly Fords to Ferraris.

How does the business work? Palmdale act on the buyer’s behalf. They
search the whole UK for a particular model, negotiate with the dealers,
check the car is good quality and then deliver it to the client’s door, all
for a fixed fee.

Business inspiration: After owning more than 100 cars by the time he
was 30, motors fanatic Ashley turned his favourite hobby into a business in
2006.

Business set-up: There’s a team of seven based in Ealing, west London,
but the company operates nationally.

Progression/finances: Ashley funded the company. It has been growing
each year.

Advice for small businesses: Think who else can help you – consider
which other companies have access to lots of your potential customers and
start forming partnerships with them. Secondly, don’t underestimate the
value of networking.