You’ll have probably heard that Wonga, who used to be the UK’s biggest payday loan lender has went into administration. The FCA recently imposed strict rules around the interest that pay day lenders charge their customers. They have also forced Wonga to compensate their customers for unfair lending and debt collection practices. This is what led the company to go into administration.
If you have borrowed from Wonga, you might have thought that you wouldn’t need to pay your loan back. Unfortunately, that’s not the case. As Wonga has went into administration, this means that control of the company has been passed over to insolvency practitioners who will do their best to ensure that the company repays all of its debts. Therefore, people who owe money to Wonga are not so lucky, as the company will still be out to collect all of its money.
It’s important that you still keep to your payment schedule set up by Wonga. You don’t want to be hit with any nasty fees or additional charges. Missing payments to loans can also harm your credit rating because your lenders look at how you’ve managed previous or existing credit when working out if they should lend you money or not.
You may be allowed to claim compensation if Wonga have mis-sold or mis-managed your loan. Unfortunately, they may not have the cash flow to pay you immediately but it’s definitely worthwhile applying if you think you are eligible. These pay-outs will all depend on how the administration process goes and you never know.
We do strongly advise that you avoid payday lenders like Wonga. There are others out there like Quick Quid, Pounds to Pocket and Lending Stream. They are similar to Wonga and will charge you high interest rates on any loan you take out with them. In a recent article from The Sun, we can see that from January until June this year, all of these companies had over 1000 complaints with Quick Quid and Pounds to Pocket having 4,561 complaints combined.
We wish we could be rid of lenders like this but it’s not likely. You should be aware of other payday loan providers who might try to take advantage of your situation and ask if you want to roll out your Wonga loan with another affordable loan alternative.
If you need help with your debts, we’re help to offer a hand in any way we can. Our advice could change your life and we can advise you on how to deal with your payday loan debts as well as many others.