It’s time for debt news again! As usual, things have been happening....
Now Wonga’s in administration, do I need to repay my loan?
No doubt you’ll have seen in the news today that Wonga, payday loan lenders, have collapsed, and have gone into administration.
We’ve written previously about payday loans and the issues within the market. Ultimately, the FCA’s response to these issues and a string of compensation claims led to the collapse of the payday lender.
At this time, a third party firm (Grant Thornton) is moving in to oversee the administration and will be in contact with the FCA, who also issued a press release stating they’re committed to making sure the Wonga payday loans customers are treated fairly.
So, given all of this, you may well be asking yourself, “Does this mean I don’t have to repay my existing loan with Wonga?”
Simply put, no.
Although Wonga is entering into administration, any existing loan agreements still stand and will need to be repaid. Read our top five tips for repaying payday loans. If you can’t keep up to date with your payments, you’ll likely face the firm’s standard debt collections process which could affect your credit file.
So what does this mean for Wonga?
Wonga isn’t going to disappear overnight and it’s only the UK business that’s affected by this announcement. The overseas businesses within the Wonga group will continue trading.
Existing customers can keep using Wonga’s services to manage their loans and, as we mentioned above, should continue to make their payments. For now, the only noticeable change is that Wonga won’t be taking any new loan applications.
You’ll still be able to contact them if you have any questions. Their number is 0207 138 8330. They’re open Monday to Saturday, 7am – 8pm and Sundays, 8am – 5pm. They’ve also updated their website with FAQs since the announcement.
I have a debt solution that includes a Wonga payday loan, will this be affected?
No. There’s no need to worry.
Just keep making your regular monthly payments. Your provider should be aware of the situation and will make sure the money gets to the right place.
Your Wonga loan’s still eligible to be included and shouldn’t affect the success of your DRO.
IVAs and trust deeds
Keep making your regular monthly payment. Your insolvency practitioner will no doubt be aware of the situation with Wonga and will make sure your creditors are paid correctly.
Bankruptcy and sequestration
Your Wonga loan can still be included as a debt to be written off and the company going into administration shouldn’t impact your solution. Your official receiver (OR) or Accountant in Bankrupty (AiB) should be aware of the on-going situation.
Struggling with payday loans?
If you’re struggling with payday loan debts then you should contact us for free and impartial debt advice.