Wonga prepares for 'orderly wind down' after it goes into administration
Administrators have been officially appointed to conduct an “orderly wind down” of Wonga in the UK following the company’s collapse.
The payday lender said its management had no alternative following attempts to restructure the business. It said the level of compensation claims for legacy loans meant it was unable to return to a profit.
Borrowers must still repay their loans and anyone seeking compensation can still make a claim.
In a statement, Wonga said: “All outstanding loans remain subject to the terms agreed with Wonga and customers should continue to make payments in the usual way.
“Those customers with redress claims should continue to approach the company in administration. These claims will then be assessed and if valid dealt with as unsecured creditors of the administration estate.”
In reality, that is likely to mean anyone who is entitled to compensation must join the queue behind secured creditors, and is unlikely to receive a full payout.