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Mis-selling victims could be left out of pocket if payday lender Wonga goes bust

Payday lender Wonga is understood to be on the brink of collapsing into administration
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Mis-selling victims could be left out of pocket if payday lender Wonga goes bust

City & Finance Reporter for the Daily Mail

Thousands of mis-selling victims seeking compensation from Wonga could be left with nothing if it goes bust.

The payday lender is understood to be on the brink of collapsing into administration after being swamped with complaints from customers who believe they were badly treated. 

If it fails those demanding compensation are expected to join a queue of creditors seeking the cash they are owed.

Payday lender Wonga is understood to be on the brink of collapsing into administration

Payday lender Wonga is understood to be on the brink of collapsing into administration

Wonga’s most recent accounts show that at the end of 2016 it owed £108.6million – double the figure from a year earlier. 

If the figure has not improved since then, there is likely to be a long line of firms demanding repayment if it goes bust.

Accountants Grant Thornton is reportedly lined up to step in as administrator.

Lenders such as the big banks are typically the first to get paid back. 

But campaigners warned victims seeking compensation must not be left at the bottom of the pecking order.

Wonga declined to comment.

 

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