Rumours are circulating that Wonga, the UKвЂ™s leading payday loan provider, is at risk of insolvency, with Sky Information reporting it could enter a pre-pack management within times.
The company it self, has stated it’s still considering all choices.
WongaвЂ™s fall and rise
When the UKвЂ™s leading payday loan provider, Wonga in 2007 revolutionised just just how short-term loans had been supplied, with clients having the ability to use online for short-term loans which were frequently compensated into banking institutions reports within a quarter-hour to be sent applications for.
Nonetheless, the company quickly courted debate over their interest prices and training of providing extra loans whenever borrowers couldnвЂ™t repay their initial loans: a training frequently in comparison to those of unlawful loan sharks. This then resulted in accusations of men and women being supplied with unaffordable loans.
The company then faced complaints of unjust business collection agencies methods after it delivered fake lawyer letters demanding re re payment of debts. In 2014 this resulted in a purchase by the Financial Conduct Authority for the company to cover ВЈ2.6 million in payment to 45,000 clients.