Payday lender Wonga will not face a criminal investigation for sending debt collection letters from non-existent law firms, the City of London Police has confirmed.
In June, Wonga was forced to pay £2.6m in compensation after the FCA uncovered “unfair and misleading” debt collection practices, including letters from non-existent legal and debt collection firms to customers in arrears.
It was later reported the case had been referred to the police because it is illegal to impersonate a solicitor.
The City of London Police says: “After a thorough review of all the material gathered we have concluded there is not sufficient evidence to progress a criminal investigation.”
The police says it met with the Office of Fair Trading in 2012 to discuss whether an investigation into Wonga’s debt collection practices should be referred to its fraud unit. It says a decision was taken that the OFT should continue with its own investigation.
In April 2014, the FCA took over regulation of the consumer credit sector and entered into discussions with Wonga.
The City of London Police says following the conclusion of the FCA investigation, it reviewed material to assess whether a criminal investigation was viable.