AROUND 10,500 customers of former high cost credit lender Wonga could miss out on thousands of pounds in compensation for mis-sold pay day loans.
MPs within the Treasury Committee say borrowers have been "left to fend for themselves" and therefore are contacting the Government to intervene.
It comes after Wonga went bust in August leaving around 10,500 complaints concerning the firm using the Financial Ombudsman Service.
When the borrower went under, the complaints body passed on the gripes to the administrator.
They'll be combined with around 24,000 complaints Wonga had received but failed to cope with before it collapsed – plus anymore that have are available in since.
Administrator, Grant Thornton, wouldn't tell The sun's rays how many complaints it's received since August, how much individuals are prone to get, so when they may find out more.
Sara Williams, who runs your debt Camel blog and it is an debt adviser at charity Citizens Advice, says compensation payouts from Wonga have typically been between lb500 and lb1,000 – although some might get much more.
The issue is that the Financial Services Compensation Scheme (FSCS), which protects cash up to lb85,000 saved having a lender, won't pay out since it doesn't cover loans.
This means borrowers have no option other than being certainly one of more information on creditors owed money through the firm without any guarantee of having their money back.
Nicky Morgan MP, chair from the Treasury Committee warns that struggling families happen to be left to "look after themselves".
She said: “It can't be right that over 10,000 people who may have been mis-sold loans are simply cast aside, especially as numerous is going to be vulnerable consumers.
“These people have been left to look after themselves by Wonga, the Financial Conduct Authority (FCA) and the Financial Ombudsman Service.
"They've been allowed to fall thought the cracks with nobody taking responsibility for his or her mistreatment.
“I have written to Grant Thornton, Wonga's administrators, to know how it promises to progress outstanding complaints against Wonga.
“If Wonga continues to damage people's finances from past the grave, it may be time for the federal government to intervene.”
The FCA won't comment on the Treasury Committee's calls, although its ceo, Andrew Bailey, has said it's "not proportionate to increase FSCS cover to high-cost short-term lending activities".
He added that bosses of payday loan firms happen to be warned to make certain that loans are affordable.
When Wonga went bust it said it couldn't cope with demand for mis-selling compensation, which saw complaints about unaffordable loans rise threefold.
More than seven in 10 (72 per cent) people who took their complaint to the Financial Ombudsman Service had it upheld in their favour.
But it's much less late to submit a claim to Wonga. Ms Williams said: "Should you be given loans you could only repay should you then borrowed again, those loans were unaffordable.
"Complaints don't need to be detailed, just email the administrator at [email protected] and say you think you had been mis-sold loans by Wonga. Compensation won't be speedy but it's simple to apply."
A spokesperson for Grant Thornton added: “We are aware of the Treasury Committee's letter delivered to our chief executive last month 25 2023, and can formally respond to the Committee within the requested timeframe.
"The administrators are continuing to do an orderly relax from the business in accordance with their statutory obligations, supporting customers where possible during this time period, and are creating a methodology for adjudicating claims in a fair and reasonable way in the circumstances of the administration.
“Our aim would be to treat claims fairly and efficiently, and to maximise the assets we receive to be able to best compensate creditors, including claimants.
"We monitor those customers who might be vulnerable (including financial difficulty, financial hardship and health and wellbeing) and therefore are working to ensure appropriate support for these people.”
The Sun has also contacted the federal government for any response and we'll update this story when we acquire one.
Here's everything you need to know about Wonga, and just what became of debts and compensation claims after it went bust.
Wonga continues to be slammed in the past for harassing borrowers.