Code of conduct
Wonga Canada is a leading short-term lender. We are based in Toronto and provide credit to Canadian consumers via the internet and mobile devices. We launched our first website in the UK in October 2007 and opened for business in Canada in October 2011, offering flexible loans of $100 to $1500, for between one and forty five days..
Our mission is to solve consumers’ occasional, urgent and short-term cash flow problems with an equally short-term solution. We base our commitment to responsible lending on transparency, flexibility and extreme selectivity. We believe it’s possible to provide credit in a way that suits consumers, not lenders.
We feel that for too long traditional short-term lenders have been devising and marketing products with low headline rates, while generating most of their revenue by keeping consumers in long-term debt, or through charges hidden in the small print. Such is the lack of transparency that many financial products would not be commercially viable without a significant portion of customers making mistakes, misunderstanding terms or using them irresponsibly.
We are taking a fresh approach to short-term credit and this is a relatively new market in Canada. Not everyone operating in this space is doing so scrupulously, so here we spell out exactly what consumers can expect when using our service. These principles are in addition to our strict adherence to Canadian law, including both federal and provincial regulatory requirements.
Our operating principles
You will never be sold, encouraged or forced to borrow more credit than you need. We will let you control exactly how much you want to borrow, down to the last dollar, and then determine the cost by deciding how many days you need it for (within defined parameters). If you haven’t used Wonga before, we won’t let you apply for more than $400.
We will determine your immediate and future credit limit based on in-depth credit and status checks, including how responsibly you have used our service in the past. We deliver on our promises and describe our service honestly and accurately at all times - we will never make any misleading claims or hard-sell you credit.
In addition to any regulatory requirements, we will always show you the total cost of repayment very clearly and prominently before you apply. This calculation includes all potential costs involved, with no carve-outs, hidden fees or catches.
We also clearly explain the potential costs and consequences of late or non-payment. We won’t ever change the rate of interest or charge during the short life of your loan.
We use Credit Bureaus and all the publicly-available data at our disposal to guard against fraud and make the best possible lending decisions based on your circumstances at the point of application. This includes evidence of your disposable income and financial commitments.
You will receive an instant, yet responsible decision on your screen. If you are declined, we will give you as much information as possible about the reasons why, along with any relevant advice we can offer. We recognize your circumstances can change so, if you return to use our service again, we will base every decision on a fresh review of your credit-worthiness, reserving the right to decline future applications even if you have repaid a previous loan on time. Regardless of whether you apply via the website or an iPhone, our checks will be just as rigorous.
We will always encourage you to settle your debt quickly – either on time or early. You will be able to compare interest accrued at any stage with the total cost of credit on the agreed repayment date - at any time. We will clearly show you how much you could save. You can repay a loan early at any time and save money, paying only the interest accrued up to that point. We do not charge early repayment fees and there are no catches.
We will remind you of your responsibilities, the amount owed and the repayment date agreed during the short course of your loan. We will automatically collect full repayment on the date agreed and do not allow you to roll your balance over for another term.
We always provide clear warning about the serious nature of credit and explain the potential consequences of non-payment or late repayment. If your circumstances change for the worse, you will be treated fairly and respectfully.
We only recruit and employ experienced collections professionals whose objective is to reach a practical and positive solution for both you and Wonga. We will only ever extend the length of your loan term when requested to do so by you - and if we believe it to be in your best interests under exceptional circumstances.
We will never extend the term of your loan without your request, i.e. by ‘default rollover’, and then only in exceptional circumstances. We charge reasonable missed payment fees (a one-off charge of $20 for a failed collection). This helps us cover some costs and dissuades people from late repayment, but nothing more. We will freeze interest at the earliest possible stage – if a reasonable repayment plan can be agreed, or after a maximum of 60 days failing that.
We make it easy to contact us during business hours: via the website, email or phone. If you have a complaint or concern you will receive a satisfactory response. We will respond to your complaint and endeavour to resolve it within 48 working hours.
If your complaint is particularly complex it may take longer to investigate but, in these cases, we will explain why there is a delay and tell you when we will contact you again. If you are not satisfied with our response you can appeal the decision by writing to us again, stating your objections and providing any new information to be considered.