ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

Wonga files for administration

Payday lender Wonga has filed its intention to appoint administrators after it earlier stopped accepting new loan applications.

In a statement, the company said: "A decision has been taken to place Wonga Group Limited, WDFC UK Limited, Wonga Worldwide Limited and WDFC Services Limited into administration.

 

“The boards of these entities have assessed all options regarding the future of the group and have concluded that it is appropriate to place the businesses into administration. Chris Laverty, Daniel Smith and Andrew Charters of Grant Thornton UK are in the process of being appointed as joint administrators.

 

“Wonga customers can continue to use Wonga services to manage their existing loans but the UK business will not be accepting any new loan applications. Customers can find further information on the website. Wonga’s overseas businesses continue to trade and are not part of this announcement.”

 

It follows a surge in compensation claims against the lender, which caused it to seek £10m of emergency funds from its investors.

 

The claims relate to loans taken out prior to 2014, the company said, when controversy over its lending practices led to the introduction of a cap on the cost of borrowing.

 

Following the cap, in which the Financial Conduct Authority (FCA) introduced a cap of 0.8 percent of the amount borrowed per day on the cost of payday loans, Wonga was forced to change its business model, providing a greater range of lending products.

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Amigo creditors vote in favour of redress scheme

Amigo creditors vote in favour of redress scheme

New Look wins High Court CVA challenge

New Look wins High Court CVA challenge

KPMG completes sale of restructuring business

KPMG completes sale of restructuring business

Upcoming events

Credit Summit 2021

Women in Credit Awards 2021

Car Finance Awards 2021

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group