The Wonga administrators sent a letter, with voting forms, last week to Wonga creditors. These creditors include some people who have made payday loan affordability complaints as they are owed money by Wonga.
Customers who have commented on my Wonga Refunds – Latest news page have said things like It’s very confusing or I can’t make head or tail of it. And above all Do we need to do anything?
This article looks at why you have been sent the letter and what you need to think about.
The letter also contains details about how the administrators are planning to handle the administration, including how they intend to assess affordability complaints. These are interesting! I will discuss them in another article.
Who has received this letter?
Everyone that the administrators have currently identified as a creditor should be sent this letter. (Actually, it is an email with a link to the letter.)
The first few people that commented about getting this letter had all had an offer agreed with Wonga, either directly or through the Ombudsman.
But some other people with complaints currently with the Ombudsman now say they have received the email. I am guessing these are people where Wonga made an offer directly, so the Administrators agree they are an unsecured creditor.
If you haven’t received this letter, it just means that you can’t vote at the moment. It won’t affect your complaint.
What to do with this letter
Legally administrators have to ask for creditor approval for some things.
In the letter, the Administrators are asking you to vote on four resolutions:
- do you want a creditors’ committee to be formed, and would you like to nominate a creditor to be on it;
- to approve the Proposals from the Administrators for how they intend to proceed;
- to agree that the Administration fees will be determined by the amount of time properly spent on it;
- to agree that the Administrators’ expenses will be reimbursed.
Enclosed with the letter are a Voting Form, a Proof of Debt form and the Proposals. If you want to vote, the Voting Form and the Proof of Debt form need to be returned by 9th November 2018. You can also ask for a physical meeting to be held of creditors, rather than this postal ballot.
You don’t have to vote on the resolutions – you can ignore them if you want to.
I can’t advise you on how to vote. For what it’s worth, here are my thoughts:
- I don’t see any downside to a creditors’ committee being set up;
- if you are thinking of nominating yourself to be on the committee, read this R3 Guide;
- I can’t think of a practical alternative to the general way the administrators are proposing to decide affordability complaints;
- the proposed administrator fees and expenses are, so far as I am aware, standard.
Completing the Proof of Debt form
You only need to send the Proof of Debt form if you want to vote on the proposals. So you can ignore it if you don’t want to vote.
If you have already completed a Proof of Debt form you don’t need to complete another one.
What to put on the form:
- name, address, email, phone – use the same details as for your complaint.
- (5) total amount of claim – this is the amount Wonga has agreed to pay you. If this wasn’t settled (for example if Wonga had agreed with the adjudicator to refund loans 3-8 but no calculations have been done) then talk to Wonga about what the figure is.
- (6) uncapitalised interest – if you know how much of the refund is 8% statutory interest, put that amount here. If you are unsure just put “included in the above”.
- (7) particulars of the debt – I suggest “redress for unaffordable lending agreed with Wonga [through FOS] on dd/mm/yyyy.”
- leave (8) and (9) blank
- (10) documents – put “email correspondence with Wonga/FOS”. There is no need to attach this.
Your name and address will not be published
The schedule of creditors in Appendix H has their names and addresses.
I have been told by the administrators that their future reports will not have the names and addresses of individuals who are creditors, so you do not need to worry that your personal details will be published.
If you didn’t get this email/letter…
If you had an agreed award with Wonga, either directly of via FOS, but you haven’t received a letter, email Wonga customer services at firstname.lastname@example.org and put “Administrators Proposals” in the subject line. Explain why you think you should have had this letter and attach any information such as an email confirming your award. Wonga Customer Services have been told to look out for these emails.