The administration of WDFC, the legal company who operated the Wonga brand, was completed in August 2020.
The company was finally dissolved in December 2020.
See Companies House records for details.
Background to the administration – rising complaint numbers
A payday loan is “unaffordable” if repaying meant you had to get into more debt, by borrowing again or getting behind on bills or other debts. So you may have repaid all your loans but still have a good claim for a refund of the interest you paid.
When Wonga went under there were over 200,000 people with current loans from Wonga – many of them had a good case for the interest to be removed from their balance so they only repay what they borrowed.
The Administrators proposals set out the reasons why Wonga went into administration. These were the increasing number of affordability complaints, especially from Claims Companies, and the decision by the Financial Ombudsman that FOS could look at loans over 6 years old, going back to 2007.
There were 24,000 affordability complaints awaiting a decision by Wonga and 9,500 complaints against Wonga with the Financial Ombudsman when Wonga ceased trading on 30 August 2018.
Details on the Administration
The Administrators have made various progress reports (available from Companies House) and statements during 2018-20:
- in October 2018, the Administrators published their Proposals, detailing how they planned to handle the administration. Creditors voted to approve these Proposals.
- progress report to end February 2019;
- Witness Statement in April 2019;
- progress report to end August 2019.
An online claim page was set up in April 2019 for Wonga customers to submit claims for refunds. The deadline for sending in a claim was 30 September 2019.
The Administrators assessed all claims using an automated tool. This took account of:
- all loans, including those over 6 years old
- how large a loan was compared to a customer’s income;
- how often someone borrowed without significant gaps;
- whether there were indications of hardship such as missed payments;
- if there is a balance outstanding for the right of set-off.
Where it decided one or more loans were unaffordable, it calculated how much interest should be refunded and added statutory interest at 8%.
In August 2019 the Administrators starting sending emails to people saying whether their claims have been successful or rejected.
In September, the Administrators sent an update on progress up to end August 2019. Key points include:
- at end August, 389,621 claims for unaffordable payday lending have been accepted by the administrators;
- the total value of these claims is c £460million – an average of c £1,200 a claim.
- £23m of outstanding loans have been collected. The Administrators say that outstanding loans are being taken into account and given the right of set-off where the customer has a claim for unaffordable loans.
- The remaining loan book will not be sold to a debt collector.
At this point the Administrators were saying that payments would be made by 30 January 2020.
29 January 2020 – administrators announce 4.3p in the pound
On 29 January 2020, the Wonga administrators announced that they will be paying 4.3p in the pound to unsecured creditors, including all the 400,000 people who are owed a refund for unaffordable lending.
The administrators have now given the final numbers:
- they assessed 401,202 claims as being valid;
- of these 358,129 are being paid 4.3% of their assessed compensation value;
- the remaining 43,073 also owed a balance on a loan to wonga, so their compensation has been used to clear or reduce that balance.
What happens next:
- the money should be paid within the next 4 weeks. This has come as a surprise as people had been told it would be paid by the end of January;
- the loans that are being refunded should be removed from your credit record in the next 6 weeks.
My comment – ripped off by Wonga and now let down by the regulators
The administrators told people they would get “significantly less” than that amount as there would not be enough money to pay the claims in full.
But many people will have been hoping for more than 4.3% and are very upset.
It is not the administrators’ fault there is so little money to be divided between so many people. It is the fault of the regulators – first the OFT and then the FCA – that they allowed Wonga to break the rules saying that affordability should be checked
And now the regulators have failed to ensure that these Wonga victims get the compensation they should have. When a PPI firm went under, the Financial Services Compensation Scheme stepped in and people with PPI claims got paid in full. But the FCA has not extended the FSCS to cover payday lenders.
This isn’t just a problem for the hundreds of thousands of Wonga victims. Borrowers from many payday lenders have been unable to get proper compensation after the lender has had to close. This will apply to QuickQuid, the money shop, Payday UK and Payday Express borrowers as well.
The FCA needs to rethink this and provide a safety net for people who were mis-sold unaffordable loans.
Readers comments – Shock and disappointment
This a brief overview of the hundreds of comments below this article.
Some people are happy to be getting anything:
- “I am only getting just shy of £25 but for the sake of completing a 30 second form it’s not too bad.”
- “I will be getting £79.93 of the £1854.17 I was owed. Better than nothing!”
- “£35 out of a possible £800. I wasn’t expecting much anyway. I’m more interested in having the 25 wonga loans removed from my credit file.”
The administrators had said people would get “significantly less” than the claim, but many people were hoping for at least 10%:
- “I got mine £88.67 – claim was £2057.05 – I was expecting at least a couple hundred.”
- “Claim was 3034, getting 130. By considerably less I didn’t think it would be over 95% of it. That is ridiculous.”
- “To receive £44.10 from a claim of £1023.00 is insulting to be honest.”
- “Owed £1499, getting £63…what an absolute joke!”
- “4.3% is an absolute disgrace. Although people are trying to be positive they shouldn’t have to. The people who made all the profit here would spend the biggest payout anyone has received on an evening out and not think twice about it.”
- “Gutted…. was hoping for at least the 10% speculated.”
This reader blamed not just Wonga but the regulators:
- “Over £11k accepted reduced down to £480 – my job, my marriage and 4 years of desperation followed by years of rebuilding my life – that’s what the regulators consider that to be worth! Shame on everyone involved in Wonga and the lack of regulation of lenders like them !”
Some are just are delighted that Wonga has gone under:
- “Heads up everyone…We have won in the end! They can no longer be a hindrance to any of us any more!”
- “Mines going to charity. Best thing to have happened is for them to have gone bust”
- ”Thank you Wonga you paid me to continue gambling, I lost everything. Good riddance.”
Many people are also disappointed and shocked that they aren’t being paid by the end of January. Some people getting these refunds are still in difficult financial circumstances and had planned to use the money to pay a bill or some debts.
February 2020 – some clarifications from the administrators
The remaining loans
The administrators have confirmed that no further payments are being accepted and the debts will not be sold to a debt collector. So you don’t have to worry about being taken to court or bailiffs.
But the debts are not technically being written off. They will remain on your credit record for 6 years from the default date on your credit record. If you don’t know what this date is, I suggest you check it now.
In practice, now the company in liquidation, if you contact a credit reference agency and say your Wonga debt is incorrect, you can ask the credit reference agency to “suppress” the record as Wonga can no longer say what the right entry should be. See How to correct credit records if the lender has gone under for details.
No deductions are being made for tax
The Administrators have said:
“the Joint Administrators have agreed with HMRC that the payment may be treated for tax purposes as set wholly against the interest and fees element first, and statutory interest second. As a result, where the distribution paid by the administrators to each customer does not exceed the interest and fees claimed by them, no withholding tax will be required to be deducted at source from payments made by the administrators in such cases.”
The simple version of this is:
- the administrators are not taking off any tax.
- there will, therefore, be no tax to have to reclaim.
- the vast majority of people will not have to pay any tax on any part of of the refund even if you are a higher rate taxpayer. The amounts don’t have to be declared if you complete an annual tax return eg if you are self-employed.
A small number of extra payments
A small number of customers were owed money by Wonga for a different reason, for example they may have overpaid on a loan. These extra amounts are also being paid out and you will get 4.3% of them too.
If you were not using a claims company, you should have received a single email at the end of January which mentions both amounts.
If you were using a claims company you should have received two emails, each about one of the amounts. If you have only received one email and it mentions a claim which is smaller than the amount you expected, you can contact the administrators, it may be this is the “extra” payment.
Bank account issues
I asked the Administrators why some people are still getting emails asking them to update their bank details. They say:
These emails will be in response to customers’ requests received by the Customer Care team prior to 29 January 2020 providing a secure method by which customers can update their bank account details. Customers should respond to these emails.
I asked the Administrators what will happen if they make a payment and it bounces back to them because the account is no longer open. They say:
Where updated information is available from customers we will attempt to reprocess bounced dividend payments via electronic transfer. Alternatively, we will issue a cheque to the address held on file.
A blogger contacted the Administrators on the 14th February to ask why she hadn’t been paid and was told:
“I can confirm that the joint administrators have commenced distribution of dividend payments to unsecured creditors, including those with redress claims. Given the volume of transactions that need to now take place, the administrators cannot guarantee an exact date when individuals will receive payment but are aiming to complete transactions within the next two weeks.”
February and March – payments started but with problems
I was told by the Administrators on Friday 28th February that 90%+ of payments have been made and they expect to make the rest of payments over the next two weeks by BACS. About 22,000 the following week, about 13,000 the week after. It looks as though the 22,000 group got their money. It’s not clear to me how many of the 13,000 group have.
Many people in the comments below this article were reporting probems. These included people whose bank accounts had never changes. Problems included:
- confusion over whether a claims company has been paid or they will be;
- Wongasaid payment was sent to a claims firm that hadn’t been used;
- Wonga said a cheque was sent to a house you no longer live it;
- Wonga said a payment has been made to your bank account but it hasn’t arrived ;
- Wonga has said a payment was sent to an old bank account despite new bank account details having been given and co0nfirmed as having been received.
On 2 March the Administrators said the payment process was taking longer than expected and payments would continue to about 40,000 people over the next 2 weeks:
The Joint Administrators have now attempted to make dividend payments to over 410,000 creditors… In addition to the payments that were not made we have had approximately 40,000 payments returned to us due to incorrect customer bank details recorded on file with Wonga. We will now begin contacting these customers whose payments were returned, by email, to obtain correct and up-to-date bank account details.
The dividend payment process is taking longer than anticipated and payments will continue to be paid during the next two weeks.
On 19 March the Admistrator’s announced:
The Joint Administrators have now attempted to make dividend payments to over 443,000 creditors representing 98% of the creditor population. This includes payments to creditors whose payments were briefly held back from the initial payment phase whilst additional validation checks were completed to new bank account and/or address details that were provided. The Joint Administrators now continue to focus on the remaining small population of unpaid dividends in order to complete the payment process.
From here on progress was very slow, impeded by lockdown.
End August 2020 – administration ends – do you still have a problem?
Have you not been paid?
The Administrators final report blames the payment problems of Wonga’s poor systems and on creditors who did not update their bank details when requested to. But as many comments below detail, people who had never changed their bank account or who had updated their bank details several times and had each confirmed also experienced prolonged delays.
At 28 Auguest when the administration ended, there were still c 49,000 payments with a total value of £632,000 that had not been made – an average about of £13 per payment. About 70% of these were for amounts owed before the administration, so not affordability complaints.
The Administrators have passed the £632,000 to the Insolvency Service. If any creditors want to claim an unpaid amount, they should email CustomerServicesEAS@Insolvency.gov.uk.
A problem with your credit record
If there is a problem with your credit record then you now need to contact the Credit Reference Agency where the problem is showing – Experian, Equifax or TransUnion. Say you can no longer get an answer from the administrators as the firm has been dissolved so you would like the CRA to “suppress” the credit records (list them) as they are inaccurate.
This problem could have been an error by the administrators, who failed to delete the record. It could be an error by Wonga before the administration: the loan date or balance or default date is wrong – you want the default date to be as early as possible so it drops off sooner – or Wonga may have failed to add a default date.
If the CRA refuses, send the CRA a formal complaint and this can be sent to the Financial Ombudsman. In practice people are getting these sorted with the CRAs without having to go to the ombudsman.
Refunds from large loans & car finance
Refunds from other payday lenders
Is your credit card limit too high?
Stacey says
Is it true some people have received payment in the bank already?
Andy says
It certainly looks that way Stacey. Some people, myself included, haven’t even got their emails yet and others are saying their money is in the bank. The whole thing has now become a total farce.
Stacey says
I had my email yesterday evening it was anything I was expecting but anything it better than nothing, upto a few months ago we never knew we was getting a penny, we all took out the loan knowing it was silly money but needs must sometimes.
Em says
Where are you seeing that money is in the bank please?
Thanks .. hope you get your email soon.. it’s ridiculous
Sara (Debt Camel) says
one person reported this. No one else has and he hasn’t replied to an email from me so I have deleted the comment. as I don’t think it’s likely to be true.
Timka says
thank, I signed it following your link
RM says
I still don’t know how to feel, I was owned £11,015 and I’m getting £476. I started getting Wonga loans when I was in uni, that £11k was actually a whole year’s salary at the time. This payout is a joke.
Lealey says
Wow out of £566 I get £24! And wait 4vweeks to get it, quite laughable! 😂
Iain123 says
How much did the administrators earn/steal?
Happy to accept less as it looks like they’ll write off existing Wonga customers debt. Spread a little cheer for the still suffering debtor.
tony says
Dear William Wragg,
I write to you regarding the recent collapse of a certain scam company that ripped thousands of us vulnerable people off named WONGA, I am sure you have read about them
I was on my knees with 4 boys to support and a huge mortgage after the breakdown of my marriage, these people dangled the carrot and when they get hold of you it is a downward spiral
I was sent an email regarding my £8000 redress, I ended up with £340 from the administrators which is 4.3p to the £, this is disgusting as there ex owners are now wealthy living off our money
Please visit online debtcamel where you will find Sara helping all us victims through this,
The government did not allow this to happen with PPI, I would like to know what you are going to do about this as I am sure I am not the only victim in the Stockport area
Thats my bit done
tony says
Oh William Wragg is my local MP by the way :-)
tony says
Use Saras link above to send to yours as well its easy with the link, come on lets bombard them all, it will come up in Parliament
Dee says
And share and sign the petition on change.org please all…nearly 100 signatures and no one has got home from work yet….spread the word!!! And thank you Sara for letting us vent on your platform. Would you like to be our spokesman for the petition?
Jenni says
Well done Tony… So many individuals going through this and debt crisis is very real, very debilitating! Have you signed the petition?
Jenni
tony says
I cant find the petition where is it
Dee says
Change.org search Wonga.
Thanks Sara, ie comment regarding your thoughts on wording, however, I’m fed up of the government fluffing things to make themselves sound good. Hopefully other parties will also support us too as I think I was as polite as could be but without holding facts.
The people who are being mean to people like us don’t understand the grandscale of what this did to 400,000 people.
usha says
I was hoping at least 10%…percentage given really is an insult I feel.
Does anyone know if quick quid has a claim link as I heard that they will follow in wongas steps?
Sara (Debt Camel) says
QQ will put up an easy page to submit a claim in April probably, so come back then.
tony says
I already done it just google quick quid complaints and you will get a phone number once they recognise your number etc they automatically put your complaint in for you and you will get a confirmation email, just tell them you are complaining for miss sold pay day loan
Sarah says
Just a heads up, It took 3 days for QQ to email me back with a reply to confirm they received my complaint, and they asked for bank statements and wage slips, I informed them I DO NOT NEED to provide these as they have all info on my file (sneaky trying to fob me off I think!!) also I called them to update all details so they’re all correct before the administrators take over, to avoid the trouble some are having now with bank details. :)
Good luck
Emma says
Will it matter if my surname has changed but all other account details are still the same as I’ve had my email to say I get £70 but today had another email about any changes?
Sara (Debt Camel) says
what does your email today say?
John says
I was owed an over payment on my account of 73 pound this had nothing to do with my claim would I also be paid a 4.3 % of this 73 pound
Sara (Debt Camel) says
yes, I think that is what will happen.
Nats Daley says
I’ve signed thank you
Lou says
So annoyed I recieved an email last night saying my claim value was £1 and that I would only be getting 4p my actual claim value was £2300, I’ve tried calling today but was on the phone waiting for too long I’ve sent an email but unlikely to get a response yet…. has anyone else had this happen?
Brad says
So, out of 460m Grant Thornton has decided that the customers who were exploited for over a decade are owed just 23m between 400,000 of us. I do wonder how much his bank account has grown. Not only this but we were all promised that out claims would be settled on 20th of January, now mid to late February it seems.
I have to say though, the FCA should be held accountable, they have protection for customers on PPI for example. Wonga, the FCA and Grant Thornton and his company should all be held accountable. Or atleast explain why 400,000 people, the same people who are pretty much the reason Wonga doesn’t exist, deserve less than 5%. The minority, which are the Administrators, have no doubt bolstered their already fat bank accounts. The FCA will continue with their ignorance. And as per usual the people who sometimes just need a helping hand, are left out to dry.
Laura says
Honestly everyone needs to calm down and read up on the facts. Where did you get 460 million from? Second they didn’t decide there was only 23 million, that’s all that was left. Again Grant Thornton is a massive accountancy form operating in over 120 countries. Administration is one arm of their business. Their turnover in the US was over a billion in 2018. To insinuate they are trying to fraudulently divert funds for themselves is ridiculous. Never was their promises of claims to be settled on the 20th jan either, all communication has said aim to by 30th jan. Not a promise a aim. And before you add I was due over £16,000 because everytime I write something sensible I get attacked saying I couldn’t have been due much
Dawn says
Has anyone actually received payment yet??
Dave says
I think people have I haven’t
Sara (Debt Camel) says
No , I think one person thought it was fun to say he had.
Dee says
I’ve just heard the FT represent, Claire Barret, talking about this on LBC radio. She hopes there will be something available for payday lender victims made a available in the March budget. Time to get writing and meeting our local MP I think everyone!
Sara (Debt Camel) says
The easy way to tell your MP what has happened to you is by email – just put your postcode in here https://www.writetothem.com/.
This is MUCH more likely to get noticed than signing a petition.
Dee says
Thank-you Sara.
Dee says
Sara, I have worked in politics and know that there is more value in a petition than a thousand emails going to different MPs across the country. I still think it is good to highlight to MPs as will also show evidence of strong feeling.
Please have some faith in this system, we would all be grateful for your continued support in all this
Craig says
Has anyone recieved an email today or this evening. Still nothing for me.
Gary says
I’ve received nothing. Might as well give up.
David says
Snap, not a sausage! Tried phoning but then got cut off!!
Andy says
Nope, nothing in my inbox or in my junk folder either. Yet I’ve seen some posts earlier from people claiming they’ve already been paid 😔
Alexander King says
Nothing here and had acceptance email
Nicola says
Same here. I did phone up and was told on the phone the email will come today or tomorrow I ain’t sure what is going on. I will be phoning back up on Monday if not received by then
Al says
Same here no email, despite ringing today and being told that emails were being sent in batches and id receive one today. ☹️
Jay says
Second article on BBC NEWS:-
Wonga compensation ‘an insult’ to borrowers
https://www.bbc.co.uk/news/business-51303908
Robert says
I have been chasing Wonga for a year about a refund for my ill mother. She was owed £2900 and is getting paid £126 . Its a complete disgrace. The administrators fees are shocking. It needs to be investigated.
Sara (Debt Camel) says
The real problem isn’t the administrator fees, it’s not their fault there is very little money compared to the massive scale of Wonga’s unaffordable loans. And it’s the regulator’s fault there isn’t a proper compensation scheme.
Sngfsh says
From what I can see, there was 1 comment which neither confirmed or unconfirmed payment. No one has officially said that they have received payment. So nobody expect anything until the next 4 weeks. I’m sure many will confirm in good faith once they have. I just don’t want people on here banking on bills being paid tomorrow and then venting their anger when no payment has been made. False hopes etc. Hope people understand my POV
Robert says
Our email said payment within 4 weeks i doubt we will get it anytime sooner. You would have thought with the terrible percentage they are paying they would have paid before end of January. Its feels like a final insult!
Sngfsh says
It’s just that a lot of people above took a very vague comment to absolutely meaning that payment was coming soon.
Al says
Is the money in the bank?? Or you just got email confirmation of what you’ll get
Margaret says
I’ve not had an email yet…or so I thought. Some months ago I updated all my info with Wonga, direct with them by phone and on their website. This included my email, address, and bank account. This was all confirmed by them on the phone and by email, and I checked the details on the site as well. My email informing me of my compensation amount has been sent to my old defunct email address. What confidence do I have they will even make payment to my correct bank account?!
chris c says
I have just written to my MP about the situation and I don,t know why but I now feel calmer, I have been stewing all day at work but saw Sarah,s write to them link and thought why not can’t do any harm. I highly recommend it I wasn,t rude I was to the point and if enough people raise the issue perhaps it will make reading in the commons.
Kaz says
I called them earlier as I hadn’t received email. Got to speak to someone after 1 hr and 23 mins and it was answered by a very rude person. Totally get they are dealing with sh!t but I wasn’t rude to her. She wouldn’t take my reference no just said I should receive an email today at some point…….. no email received and it’s now 7.35
M says
I think a huge problem we will have also is getting your average Joe to agree that the government should pay us the full compensation. Just reading comments all over the internet from people who have never been in financially difficulty or desperate, basically saying it’s our own fault. I blamed myself for years and when the financial ombudsman looked at my claim, Wonga should have realised from loan 4!!!!! Out of over 30!!! If they had stopped lending at loan 4 offered me an affordable payment plan then my life would have been a lot different – the spiral of them borrowing from other lenders would not have happened. That’s what the average Joe does not understand!
Scotty says
Hi, might help some people I did not receive an email about payment regarding the refund form Wonga. I did receive
all other emails regarding the payment amount.
This morning I realized I used a different email on my Wonga actual account. I had pursed my claim on different email
this being the problem as they sent the information on the refund to email on my Wonga account.
Silly mistake but hope it helps
Lisa says
Received my email with the amount I would receive I know it was going to lower but just £10 is an insult for me and others been affected by Wonga. That’s not even worth the hassle it was to put the claim in.
Timbouk says
I would think most people will receive a payment tomorrow as the original plan was to send the emails as the BACS payment were sent ( this would have been Wednesday for Friday payout). I think he four week payout period covers those that have changed bank details recently.
Suzanne says
Wonga was quick to issue loans and rip folk off with the high unfordable interest, hoping to be rich and hit the deprived people trying to meet ends reach month by month. It’s a complete insult with what’s been offered. Someone is making a lot of money from the remains of the companies assets unfortunately it’s not the general public who really deserve to be paid back but the administrators will make sure they are paid in full with a whopping payout. Get priorities right and look out for all these vulnerable people who deserve the payouts they were estimated instead of making money from us all!!! Absolutely disgraceful in my opinion
Sngfsh says
Would you do your job and not expect to be paid in full? Lets moderate opinions, get facts right and at least pull in the right direction
Chris says
Sign the wonga petition and share to raise awareness
http://chng.it/S4jn44jYQX
Delyth Williams says
Any developments on last nights emails that seemed completely wrong? My accepted claim amount was 7200 but last night I was getting £1.56 from my accepted amount of £36 ??? That is significantly lower 🤣🤣🤣
Lou says
Have you managed to speak to them about it? The same thing has happened to me I’m just hoping it’s an error due to the huge scale of things, I have emailed them but no response as of yet.
Delyth Williams says
Lou…. yes also emailed them last night but nothing back. Haven’t had a spare 2 hours to phone them 😂🙈
Andy says
A few have also had or appear to have had what I’d call “illogical values” for one reason or another.
It is a pain but if the sums are obviously wildly incorrect then you do need to contact them I suspect :(
Tip for the moment: Look closely at the older email the one with the table of figures in it too to see if that appears to tally properly.
All the best :)
Emma says
It states that if all details are correct then no need to do anything but if not to click on the link to change them but it also says I will get an email shortly with my redress amount but I had that one yesterday?
Stephen says
Emailed my mp have all you lot done it too ?
Best way to get noticed
Dee says
Petition is gathering speed on change.org
I have also written to my MP.
Jeannie says
I still have not received an email. Are others in the same boat?
Kim says
Yip still nothing from them
Shelly says
I’m still waiting too… glad I’m not the only one!
Andy says
Yes Jeannie, sick of checking my darn inbox and junk folders. Oh well, maybe they’ll make the payments in reverse order so the people who waited longest for their emails will get paid first 😉
Chilli bean says
For everyone questioning the additional balances on your accounts that the administrators discovered and are paying back in addition to the redress payments:
Having searched back through emails I received one in 2016 from Wonga saying that they had done an internal review on all their l previous loans (at the request of the FCA) and discovered that they had miscalculated interest on many loans. They were refunding the amount over charged if you got in contact. I never did (must have missed the email) so I guess it just sat on my account for the past 4 years…. Strange that they didn’t make more of an effort to get in touch at the time….
Dee says
I actually received the £45 they owed me in October 2016. That is the main basis of my current complaint with the FCA and the administrators.
I should of received my £8000 then had they reviewed my account in the way the email stated.
Chilli bean says
Totally agree that the FCA should have followed up this internal investigation and redress payment back in 2016… They might have saved another 3 years of misery for people of they’d have investigated properly.
Not sure that the administrators could have done much though 2 years after the event.
Happy to forward the email to you Sara if you can give me an address to send it to.
scott says
you can now start on quick quid this is what i have had off them today
Thank you for contacting us in relation to your complaint.
As you may be aware CashEuroNet UK, LLC (trading under the brands QuickQuid, On Stride Financial and formerly Pounds to Pocket) entered into administration on 25 October 2019. Chris Laverty, Trevor OSullivan and Andrew Charters of Grant Thornton UK LLP were appointed as joint administrators of CashEuroNet UK, LLC 25 October 2019 (the “Joint Administrators”). The Joint Administrators will conduct an orderly wind down of the business, including the sale or realisations of the assets and the process of identifying and assessing all creditors, in accordance with their statutory obligations.
Please consider this email as confirmation that your irresponsible lending/ unaffordability complaint has now been acknowledged. You are now a potential creditor of CashEuroNet UK, LLC (in Administration). This means that, in the event that your complaint is upheld, any amount that you may be offered will rank as an unsecured claim in the administration. Any payment made to unsecured creditors is likely to be significantly less than the value of their claim.
Matthew says
Just signed the petition and written to my MP. Hoping that we can get as many people as possible to write to their local MP as this is more likely to make a difference. https://www.writetothem.com/
Grant says
£1420 and I got £61 :(
Vin says
£3959 and I’m getting £170.59😢
Kim says
If the FSCS knew and allowed wonga to break the rules then they should pay out the rest of the compensation themselves as they are also responsible for not monitoring wonga and letting get away with ripping perole off for so long
Sara (Debt Camel) says
it was the FCA, not the RSCS, but I agree with what you are saying
David says
So sent an email and this is their automated response – states apparently everyone has now received an email regarding their claim. Well, still we haven’t received a dickiebird!
Apologies, we are experiencing a very high number of queries into the Customer Care team. However, we will endeavour to respond to you as soon as we are able. In the meantime, please read the below to see if your query can be answered:
Declaration of dividend
The Joint Administrators have declared a first and final dividend (the Dividend Declaration). This Dividend Declaration is being communicated to all successful creditors on 29 January by email
Payment of the dividend will be completed within a four week period following the Dividend Declaration being sent to creditors
If you have not received this email by 30 January, please check your junk folders
Amount of payment:
Please note that the dividend payment you will receive will be significantly smaller than your claim amount
If you are due to receive a payment, as you have a successful claim, this payment will be first and final. Customers are unable to appeal the dividend amount
When will I be paid?
Due to the volume of dividend payments due to customers/creditors, you will receive your payment within four weeks following the Dividend Declaration being sent to creditors on 29 January.
Pablo Moles says
Hi all,
As many I’ve been part of this awful situation, and yes something is better than nothing but to be honest for most it does border on nothing.
I agree lets try get enough attention to this cause whats the worst that happen – please sign petition all! http://chng.it/S4jn44jYQX
Willie says
Can I just ask for anyone living in Scotland absolutely write to your MP. With all the SNP MPs in seats this is right up their street to have a go at the big man at Prime ministers questions
EDITED – here is the easy way to contact any MP (and also MSPs for people in Scotland) https://www.writetothem.com/
Laura says
This is exactly what I have done! My local MP is like a dog with a bone at PMQ normally 🤣
Richard McGrath says
Only getting £26. What a farce.
So the administrators decided on a compensation award based on 4.3% which totals approx £23million. Which is a coincidence as the administrators state that before they decided on the compensation rate, they collected a further £23million in loan payments. Weird how the 2 amounts are so close.
But even putting that aside, the administrators also stated that they had made provision to pay the creditors, i.e. us, by putting aside £45 million to settle all claims. Once again, if £45million was put to one side for compensation purposes (this would equate to compensation being paid at approx 8.5% not 4.3%) why was only £23million of this used.
The administrators say in their email that the 4.3% was calculated taking into account all monies available at Wonga, well, by my maths they calculate £23million. However as stated earlier the administrators recouped a further £23million add that to the £45million the administrators put aside to pay the claims and that’s £68million.
Where has the rest of the monies gone? And who really decided on the 4.3% offer? Makes you wonder
Michelle says
I believe used it to write off balances for those who had outstanding loans and successful claims. For example if you were awarded £1500 redress but you owed them £1600 in a current loan you only had to pay them £100. If true this is outrageous. It means existing debtors got preferential treatment over other claimants.
Sara (Debt Camel) says
It is the way it works legally.
And on a practical note, this person with the large balance has been given an unaffordable loan – that is why they are owed redress – he can’t afford to repay it and the administrators would find it very difficult and lengthy to recover much of this money.
Crystof says
The administrator probably bought wonga….. For a £1
Laura says
Administration and liquidation are two different things. Administration is that company administration aims to help the company repay debts in order to escape insolvency (if possible), whereas liquidation is the process of selling all assets before dissolving the company completely. GT never bought Wonga either they were appointed when the company filed for administration
Luke says
Ask administrators what hourly rates they got for this..
For example for wageday advance cost of administrators was ~ 8m, with hourly rates of few hundred pounds – yes per hour not per day!
This is just a festival of free money…
I know I know – such a hard work…
Sara (Debt Camel) says
I am not saying the people working for Grant Thornton are badly paid, but they do not receive that amount, it is the charging rate for their time.
And it is not the GT fees that are responsible for you getting very little of your compensation, it is the fault of the regulators for allowing Wonga to operate for 10 years while it was breaking so many of the rules. And of the regulators for not providing back up compensation when a payday lender goes bust.
Becky says
When did you get the email? I had an email back in October confirming I had an accepted claim and the amount I was due. I then had an email asking me to confirm my bank details which I did but I’ve had nothing since?
Michael says
Yeah same here, people have apparently recieved a email confirming the amount , but I’ve recieved no such email.
Sara (Debt Camel) says
1) £45million was NOT “put aside” for this.
This was a number in a report which a journalist used as an estimate last year. It was never going to be accurate.
That is why I always refused to make a guess at the % payout because there was nowhere near enough information available.
See https://debtcamel.co.uk/wonga-has-stopped-issuing-loans/comment-page-32/#comment-342859 where another reader has explained this.
2) those two numbers have nothing to do with each other. You can’t read anything into the fact they are so close.
3) the 4.3% offer is because the money really available to be distributed is 4.3% of the total of the unsecured creditors claims.
I get people are very disappointed, feel that “significantly smaller” did not give a reasonable indication of what has happened – “pathetically tiny” would have got the reality across earlier. I also understand that people are very cross they were told they would be paid by the end of the month and that some people were relying on this money coming through.
But this is not some secret plot by the administrators. It’s not their fault there is very little money. Blame the regulators, not GT.
Jamie Donnelly says
Less of the arse licking
smiley says
I meant to type ‘You got more than me’ Well jel u innit?
Jamie Donnelly says
Why would I be jealous just had a drink that’s all lol. Got over 300 hundred coming my way
Deano says
Hey
Sorry I know many may of already asked but comments seem to be getting deleted/archived and i haven’t seen any today
I haven’t received my dividends email yet despite having an acknowledge and accepted claim and got the email on 10th
Assume these are coming in batches but just seeing if anyone in the same boat as me?
Sara (Debt Camel) says
if you look at the previous page (the “older comments” button at the bottom you will see a LOT of people have asked this today.
Most of the comments deleted today relate to one person who must have thought he was being clever by saying he had got paid and then everyone asking about it :(
Craig says
Getting pretty f#$@$d off now. They owe me 11k and I dont even have an email to tell me I’m getting a measly 4.3%. Absolutely raging.
smiley says
Craig be patient honey, your getting a few hundred quid. I only got £58.08 x
Craig says
I’m trying but the audacity to underpay by 95% after telling us all here’s what your owed and not send all emails at the same time is a joke. I appreciate others are getting less but my few hundred pound will help a great deal.
Ms B says
I was told that if my claim was accepted which it was in October, Wonga legally had to withhold 20% tax from the 8% statutory interest. My interest was £1000 (loans from 2010) does this mean I can reclaim £200 from the tax man?
Sara (Debt Camel) says
no, the tax paid will only be 4.3% of the original number too
Rahul Gohil says
Should I be worried that I haven’t received any emails since the 10th?
John beswick says
I’m still waiting on my email stressed out 🤪
Jeannie says
Me too 😩Must be tomorrow now
Stephanie crane says
Hope I hear tomorrow too £25 better than nothing, £668 would’ve been a delight !!!!
Steve K says
11k redress and going to get £487. Didn’t expect much more but at least it’s a week in the Canaries for me when it comes through. Straight on the Jet2 website!!
Sam says
Funny how they could pay out cash in 10 minutes but now it takes them 4 weeks.
blokefromhull says
Yes, they can. Modern transfers are now usually within 24 hours, most within an hour.
Steve says
This may be a controversial comment. Sorry if it is, but…..those of us who have struggled immensely (possibly using other payday lenders and/or high cost loans; others over years and years using debt management etc.) but actually ended repaying their loan in full receive 4.3% of the alloted compensation. However, had we not repaid anything then it is likely that we would get 100% of our claim set off against our balance. Seems terribly unfair. Likewise those with money outstanding seem to be likely not to have to repay. Would be fairer if all were reduced by 4.3%.
Sara (Debt Camel) says
Would be fairer if all were reduced by 4.3%
That isn’t the way it works legally. Set off happens first. the administrators had no choice about this.
Most of those with loans still outstanding simply have no money. Nothing that can be done will change that.
Steve says
I get this, and in no way is it a dig at those who benefitted from set off. It just seems that the ‘rules’ favour not making payments once you are in difficulty. I have always stood by the moral that even when in financial difficulty, I would want to repay what I owe (even I this takes longer than planned). At times when I was struggling to meet repayments, and threatened with exorbitant charges for missed payments, I made the (stupid) decision to miss mortgage and secured loan payments (because the penalties were less harsh so long as arrears were kept below 3 months).
I tried to make affordable repayment plans with the likes of Wonga etc. but was bullied by threats of increased charges which would make the loans even less affordable.
If (heaven forbid) I had a work or family crisis, being already in arrears I could have lost my house, family, who knows.
I made silly decisions which cost me more in the long run, yet if I had ignored them my loans would be written off.
Sara (Debt Camel) says
The rules favour people making sensible decisions when they have money problems – and that is not to pay unaffordable debts but to get payment arrangements. Sorry, that is what the rules should do. I am sorry you got trapped by payday loans and at the time were probably too stressed to see clearly what the best way forward was.
Judith Whiteley says
Hello. My problem is with the Administrators: they have kept thousands, which could have been shared amongst us. We should ask them to distribute their costs.
Sara (Debt Camel) says
Not going to happen. If administrators don’t get paid in full, they won’t do the work and then you would have had no money at all.
Barry says
Why would they do it for free?
Annonymous says
So they should work for free? Would you do your day job for free? I’m not sure I like the tone of people’s comments toward Grant Thornton, this idea of entitlement is worrying. They have said from the outset that what we would be receiving would be small in comparison to what we were owed. That is generally standard practice where administration is concerned.
This notion that they haven’t done their job or that they have purposely pushed the price to the floor is utter nonsense….. when you look at the facts and the nature and profile of the case for them…. not entirely sure it was in their benefit to handle this in any way other than fairly, by the letter of the law and ethically.
We were owed something, we’ve been given something.
scott mather says
Over 6000 getting 270 back. Can/will people post when payments start to get recieved. I’m guessing it won’t be quick.
Judith Whiteley says
No, of course they wouldn’t, but look at the posts here: the outcome is causing genuine distress. It is the way the entire Proceedings have been handled. Rules related to the situation have not been followed. Was anyone asked to a Creditor Meeting for example?
Sara (Debt Camel) says
The administrators have followed all the rules eg asking if a physical meeting should be held to approve their proposals, getting the proposals voted on, asking if creditors committees should be set up etc See the filings in Companies House https://beta.companieshouse.gov.uk/company/06374235/filing-history and, for example: https://debtcamel.co.uk/wonga-letter-oct-2018/
Judith Whiteley says
I have criticised GT and have had replies that they are blameless!! I don’t agree. Of course they don’t work for free: that isn’t what I meant. However, there is a code of practice which has to he followed. There have been several instances lately of malpractice. I plan to make a Freedom of Information request to find out exactly what GT have been paid in Fees etc
Sara (Debt Camel) says
You can’t make a FOI request to a firm like GT. Only to the government, local government, and similar government related organisations.
Judith Whiteley says
Claim money back from a bankrupt person or company in compulsory liquidation: detailed guidance for creditors
Updated 1 February 2019
This is from the gov.uk website and gives good information about what to do if you wish to complain about Administrators
Sara (Debt Camel) says
This is an administration, it is NOT compulsory liquidation. No Official Receiver is involved. That page is not relevant.
Wj says
They have known since last year how many claims they had to pay and stated payment by end of January, so why has it now switched to payments will be up to 4 weeks later what’s suddenly happened that they now need longer to payout, people feel well and truly let down by them, administrators should not have misled people over payment date
MFJN says
Hi All,
Please read posts. It is what it is and details of individual cases and ranting change nothing. Everybody is getting the same 4.3. It is not going to change.
Right now we should be verifying if anyone has actually really been PAID? Everything else at this stage is howling at the moon and uninformative.
Can ANYONE confirm that they have recieved their 4.3% in bank?
Sara (Debt Camel) says
No one so far has been paid.
Michael says
I haven’t even recieved a email confirming my amount and that was supposed to be 2 days ago
Sam says
Absolutely disgusting how they can get away with paying 4.3% redress 2.9k but here’s £120 wow surely this can’t be the end!
Sara (Debt Camel) says
There is no way to appeal this. That is all the money there is to distribute.
I suggest you email your MP to say how 400,000 people, many of them poor and vulnerable, have been let down. Here is the easy way to contact your MP > https://www.writetothem.com/ just put in your postcode
Suzanne says
Who will get the interest on our money for 4 weeks? £45 million will give a hefty amount of ‘wonga’ for someone!!!
Sara (Debt Camel) says
It’s not 45m, the interest will be peanuts and it all goes into paying for the costs of the administration. You want your loans deleted from your credit records? That still needs to be done. And there are long legal procedures to finally close down a company and report what has been done.
Julie says
Hi what should I do if I dont receive an email as I havent as of yet…..thanks..
Stephanie Crane says
Hi, yes, I’d like to know too, had the emails to date with the proposed amount but not the latest to give the final amount ?
Sara (Debt Camel) says
I have asked the administrators this – no reply yet.
Caroline says
Checked my bank this morning still not getting paid!!!!! They say 30th jan no late pay 🙄🤷♀️
Sngfsh says
The latest is in the next 4 weeks……which could be at the end of the 4 week time slot. (and there could be further delays) So best to budget accordingly and accept that nothing as a minimum will be paid before 4 weeks.
bob says
I personally can’t understand the whole financial situation. 400000 accepted claims an average claim of 1100 and £45m to pay this works out at just over 10%. Am I missing something where does 4.3% come from??
Laura says
There wasnt 45m by the time the companies debts and costs were paid it was £23million to be shared between all creditors. The average claim of £1100 is irrelevant but there was over £535 million in accepts creditor claims so it’s 535 million and 23 million is where is coma from
Richard says
Yes they said expected payment 30th of January in their October email, now they’re allowed to change it…scumbags can get away with anything… We should charge them a 30 pound late fee everyday, thats what they would do