Wonga, the short term pay day lender, has collapsed under a barrage of compensation claims. The organisation will be appointing joint administrators which includes Chris Laverty, Daniel Smith and Andrew Charters of Grant Thornton UK.
The affected entities are Wonga Group Ltd, WDFC UK Ltd, Wonga Worldwide Ltd and WDFC Services Ltd according to Wonga’s official notice on its website.
According to the boards of the three entities, all alternative options were considered before reaching the conclusion that administration remained the only solution.
Existing Wonga customers are encouraged to keep paying their outstanding loans but no new loan applications will be accepted by the UK business.
According to AccountancyDaily reporter, Pat Sweet: “Wonga’s overseas businesses continue to trade. The lender has operations in Poland, South Africa and Spain, which are not part of the administration.”
Is it just a matter of time though?