Payday lender Wonga.com is now in administration after failing to cope with customer compensation claims.
Wonga.com was well known for offering short-term, high interest credit (Payday loans) after launching here in the UK in October 2007.
Wonga got their name well known across the UK by sponsoring football teams, the London Underground, various TV adverts & shows, all of which were heavily criticised.
Wonga charged interest rates, which can equate to an Annual Percentage Rate (APR) of 1,509%, had been widely criticised. Wonga had said they believe APR is a poor measure of the true cost of short-term loans. As of April 2016, a loan of £100 over seventeen days (Wonga’s average loan term) required £113.60 to repay.
Wonga.com went into administration on 30th August 2018 after struggling to keep up with customer compensation claims, with now over 40,000 complaints received.
The administrators (Grant Thornton), are now dealing with winding down the company & have sent Wonga.com customers an email 8th May 2019 to advise on where to submit a claim –
| “Update from the Joint Administrators of Wonga Dear Following a court hearing on 25 April 2019, the Joint Administrators of WDFC UK Limited (trading as Wonga.com) include links below to two statutory notices that are being provided to you as someone who has submitted a claim or may in due course. 1. Notice of intention to declare a dividend This can be accessed by the link below: WDFC UK Limited – Notice of intention to declare a dividend Please note that in order for the Joint Administrators to set a final date for those who are owed money to submit a claim, they must issue the notice in the link above. As you will see from the notice, all claims must be submitted by 30 September 2019 or they may not be considered for payment. It is expected, unless you receive a notification to the contrary, that the Joint Administrators will make a payment to accepted claimants within four months of 30 September 2019, i.e. by 30 January 2020. For those claimants who have already submitted a claim, no further action is required from you at this stage and the Joint Administrators will be in touch when they are ready to assess your claim. If you have not yet submitted a claim and believe you have been sold an unaffordable loan by Wonga, as per our previous correspondence, all customers should make a claim through the Online Claims Portal by clicking on the button below. Submit your claim now Please be aware, if successful, the payment you receive will be considerably smaller than your accepted claim amount. This is because it is expected that the total value of all accepted claims received will significantly exceed the money available to be shared out. The money available to be shared out will not be known until all of Wonga’s assets have been sold or realised and certain costs and deductions have been taken into account. 2. Notice of extension of administration This can be accessed by the link below: WDFC UK Limited – Notice of extension of administration An Administration is typically a 12 month process. As explained above, it will not be possible to collect in, assess and pay money to claimants within that time period, as such the Joint Administrators have had approval from the Court to extend the Administration by a further 12 months (to 30 August 2020) and the statutory notice above confirms this. No further action is required by you in respect of this notice. If you have any questions or require any further information, please visit our FAQs on our website. Kind regards, The Joint Administrators wonga.com customercare@wonga.com “ |
