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Wonga "considers all options" as claims for compensation rise



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Payday lender Wonga has said that it is considering "all options" after reports suggested it was collapsing.

There follows a wave in compensation claims against the company, in the midst of a government enforcement on payday lenders.

According to Sky News, the company has hired Grant Thornton as bankruptcy trustee.

It was said that the ailing company would decide on its future within weeks.

Britain's largest payday lenders, Wonga criticism for its high cost, short-term loans, which some specifically said the vulnerable.

Stricter Rules

In 201

4, the Financial Conduct Authority found that its collection procedures were unfair, and ordered it to pay £ 2.6 million to compensate 45,000 customers.

Since then, payday loan companies have stricter rules and a cap on their fees.

This has severely impacted Wonga's profits and recorded a loss before tax of nearly £ 65 million in 2016, although it was claimed that its business had been "transformed"

It has continued to face old lawsuits and been forced A Wonga spokesman said, "Wonga has recently raised £ 10m from existing shareholders to help offset the substantial increase in old loans in the UK short-term.

Wonga spokesman said:" Wonga has recently raised £ 10m from existing shareholders To fix the banking industry.

"Since then, the number of complaints related to UK loans, which began before the current management team's entry in 2014, has continued to accelerate, driven by the loss management company's activity.

Wonga's Board of Directors retains all options regarding the future of the Group and all of its entities.

Fall of Grace

According to Sky, the company is investigating the possibility of a pre-pack administrative procedure similar to that recently used by House of Fraser.

However, a fortune could be sold including its Polish subsidiary

She has held in-depth discussions with the Financial Conduct Authority, the city regulator, about her options, Sky reports.

For Wonga, this means a huge drop in 2012 Announced that it would have valued at over a billion dollars.


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