Britain’s biggest payday lender, Wonga, is teetering on the brink of collapsefollowing a surge of customer compensation claims in recent weeks that could cause it to call in administrators.
The flood of claims relates to loans taken out before 2014, when Wonga was the poster child for outrage in the payday lending industry that resulted in rules capping the cost of borrowing.
The short-term loan provider says it is assessing “all options regarding the future of the group” and has reportedly lined up the accountancy firm Grant Thornton to handle a potential administration.
Wonga is not currently in administration – so the company is keen to stress that it is business as usual. Banking works via people borrowing money and paying it back (with interest) – and nothing changes in that respect because a lender is struggling. If you are considering trying to get away without paying, be warned. Wonga’s website points out: “The first time you miss a payment, you’ll have three days to repay before we charge you a missed payment fee of £15.”
Yes. Any administrator appointed will be acting in the interests of the company’s creditors. That means they would seek to get the best financial result possible for those owed money, principally by selling Wonga’s assets.
For more read the full of article at The Guardian
