MP Fiona O’Donnell warns over loan site fraud

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EAST Lothian Labour MP Fiona O’Donnell is warning people to beware of fraudsters using their name to take out high-cost online loans.

She told of one resident’s shock at discovering that two loans had been taken out in her name with Wonga. The first she knew of the loans was when the company contacted her to demand repayment.

She told them she had not applied for the loans, and when Wonga investigated the case it confirmed she had been a victim of fraud.

Ms O’Donnell said: “This constituent’s experience is deeply concerning. The fact that someone managed to use a few pieces of personal information to fraudulently open a loan account and apply for two loans in quick succession, without it being flagged as suspicious, calls into question the security procedures used by Wonga.”

A Wonga spokeswoman said: “Any case of fraud is regrettable and we take every case seriously. We use our decision technology and work proactively with the UK’s leading credit reference agencies, as well as law enforcement, to reduce the risk of fraud to an absolute minimum. As soon as it is confirmed that someone had been a victim of identity fraud, we ensure they are indemnified against any financial loss and that any related entries are removed from credit files.”