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The near future for the PayDay industry after the collapse of Wonga

The near future for the PayDay industry after the collapse of Wonga

Sohail Ismail, Litigation Executive and Team Leader for Consumer Debt Litigation, has furnished their viewpoint in the collapse that is recent of following news they have entered into management.

What/who are Wonga?

Wonga had been as soon as a prominent PayDay home loan company which burst on the “short-term loan” market at the beginning of 2006, and had been thought to have over a million clients at one point.

On 30 August 2018, Wonga went into management carrying out a rise in payment claims created by its clients, so when of 31 August 2018, Chris Laverty, Daniel Smith and Andrew Charters of give Thornton British LLP had been appointed since the company’s joint administrators.

A announcement that is recent the Administrators in the Wonga web site states as follows:

“Despite efforts to restructure the business enterprise, including an injection of financing by the Group’s investors the business enterprise ended up being not able to be restored to profitability as a result of amount of redress claims. The administration team had no alternative but to place the aforementioned businesses into management. (more…)

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