Home Business News Wonga ‘on brink of collapse’: What we know so far

Wonga ‘on brink of collapse’: What we know so far

by Purvai Dua
28th Aug 18 8:00 am

Wonga is reportedly considering “all options” following a surge of customer compensation claims in recent months that could cause the payday lender to collapse.

According to latest reports, the British company has lined up Grant Thornton to handle its potential administration, just days after shareholders pumped £10m in a bid to save it from going bust.

The development comes four years after the Financial Conduct Authority had ruled that Wonga’s debt collection practices were unfair and ordered it to pay £2.6m to around 45,000 customers. This crackdown had been a massive blow to Wonga’s business model and pushed the lender into the red.

Wonga has yet to release its results for 2017 – but they are unlikely to reflect a return to profitability, according to the BBC.

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