Wonga to go into administration
Wonga is entering into administration after being overwhelmed by compensation claims from former customers.
The payday lender firm, which won’t be issuing new loans, was saved from going bust by an emergency £10m cash injection earlier this month.
The Financial Conduct Authority said it will continue to supervise Wonga once it is in administration and is in close contact with the proposed administrators with regard to the fair treatment of customers.
Wonga’s customers are expected to continue making outstanding payments normally, while existing agreements in place are unaffected by the proposed administration.
Insolvency Practitioners from Grant Thornton are being appointed as administrators to manage the firms’ businesses and affairs.