You will not have escaped the news about the pay day loan firm Wonga calling in the administrators in the last couple of days. This action has been taken despite a cash injection of some £10m made by shareholders only months ago in an attempt to keep the company going.
The demise is being blamed on compensation claims the company had to pay following the FCA putting a cap on the amount lenders can charge and tougher rules on the way they can make their collections. Compensation claims had to be made to some 45,000 customers totalling £2.6m.
Now that the company is in administration it will not be giving out any further loans, but borrowers will still have to make their payments to the company to pay off existing loans.
Anybody affected by the administration of Wonga and unsure of their position can ring us for advice.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.