Will your Wonga loan be written off?

Last post: Sep 28, 2018

One of the UK’s best known unsecured loan providers, Wonga, has gone into administration. What does this mean for its borrowers? Will they need to repay their loan? We offer answers and advice.

Long a subject of controversy thanks to its aggressive approach to advertising, Wonga UK went into administration this August. From cartoonish puppets which many felt were targeted at young and vulnerable individuals, to football club sponsorships in economically disadvantaged areas of the UK, there was a lot to criticise Wonga for. Now the short term lender's choices has caught up with Wonga, plunging the company into debts all of its own.

While many will be pleased to see Wonga go – but many of its customers with existing loans will be concerned about what this means for them. Don't worry. If you currently have a Wonga loan, we've sourced some answers which should cover all of your bases…

Do I still need to repay my Wonga loan?

The short answer here is YES. Even though Wonga is now in administration, you will still need to repay the loan that you took on (sorry!). This loan, however, will not be collected by Wonga. Instead it will be overseen by administrators responsible for tying up the company. If you have any concerns about repayment, get in touch with a debt charity such as StepChange for advice as soon as possible.

Will my existing claim against Wonga pay out?

If you have made a claim against Wonga, you may be worrying about whether or not you will receive compensation now that the business has collapsed. Unfortunately, if your claim is upheld, you are now less likely to receive a payout.

This is because there is limited money left in the business. The money that is left will be used to pay a wide array of outstanding payments, arranged according to priority. Compensation for new claims, sadly, is quite far down the list. Those with older, already agreed upon claims are more likely to receive the money they are owed, as these costs my be higher up the priority list.

Arrange an unsecured loan you can rely on, from lenders with exacting lending criteria. Contact our team to explore your best short term finance options today.