Wonga, the PayDay lender who has become a household name, is reportedly on the brink of insolvency, with Administrators lined up to take over the running of the business.
Wonga’s meteoric rise can be attributed to its cutting edge technology and practices, making short term loans easily obtainable, and with marketing that almost normalises it as standard practice for all families with 2 to 4 children.
It transpires that now, the City’s regulator, is of the view that those cutting edge practices are a little too sharp, and this has led to a flood of claims for compensation from the lender, which it seems it is unable to cope with.
What happens to your debts if Wonga goes bust?
If you have an existing arrangement with Wonga, you may be wondering what happens next. Its important to realise that even if Wonga goes into Administration, you will still be liable to repay your obligations to them. Its too early yet to know if it will be business as usual, in terms of new loans being granted by the Company, but if you are in a position where you need some help and advice, we are always here to provide free impartial help. Contact us on 0800 652 0002 or request a call back.