On 28th January 2020, the Wonga administrators announced that they will be paying all unsecured creditors 4.3% of their agreed Claim. They stated:
This is a first and final dividend totaling £23,090,071.32, representing 4.3p in £ on agreed creditor claims of £535,636,017.75.
No further dividends are expected to be paid to the Company’s creditors.
Most of the unsecured creditors are the c. 400,000 borrowers who are owed compensation for unaffordable loans from Wonga going back to 2007.
If you have had an accepted Claim by the administrators, you should get one of these emails:
- it says how much you will be paid.
- your bank account will be credited with the money over the next four weeks.
- the loans that you are getting a refund for will be removed from your credit records, I hope in February.
To follow the news about how this goes in practice, see my Wonga Latest News page and the comments below from readers.
Contents
FAQs about Wonga refunds
What are these payouts?
The people getting a payout now made a Claim to the Wonga administrators that Wonga had given them “unaffordable loans” – loans they could not repay without getting behind with bills or having to borrow more money.
The administrators assessed each Claim, using the same approach the Financial Ombudsman does, see How FOS handles unaffordable lending complaints.
It was decided that a loan was unaffordable, the compensation – called “redress” by the administrators is a refund of the interest and charges on the loan plus an extra 8% statutory interest.
If you want to know more about affordability complaints, see How to ask for a payday loan which describes what these are and who can make them.
Why are people getting so little money?
In September, the administrators they had received c. 390,000 successful claims for refunds, with a total value of c. £460million. That gave an average of about £1,200 a claim. The deadline for claims was a month later, so the final figures will be more.
Once all the secured creditors and the employees had been paid, the administrators have to divide up the remaining money from closing down the business and selling its assets between remaining creditors. There is only enough to pay 4.3%
For detailed background on this administration, read Wonga – Latest News which is kept updated.
How can I appeal that very low amount?
You can’t. It is what it is.
(In theory, you could sue the administrators. But it isn’t the administrators’ fault that there is so little money to be divided and so many people who were mis-sold loans by Wonga.)
When will people be paid?
Payments will be made over the next 28 days but may take several weeks because of the large volumes.
They are likely to go out in batches, so don’t panic if you see other people have got their money but you haven’t!
I didn’t know about this, can I still claim?
No – the last date for sending the administrators a claim was the end of September 2019.
I still owe Wonga for the last loan – what will happen?
The loan will not be sold but no more payments are being accepted. See the Wonga Latest News page for details about this.
Can I reclaim any tax back?
No, because no tax is being withheld from the payments that are being made- See the Wonga Latest News page for details about this.
Can you get refunds from other high cost loans?
Yes! It is worth making an affordability complaint if a loan left you so short of money you got behind with bills or had to borrow again.
The following articles have details with a template letter to use.
- payday loans: How to ask for a payday loan refund.
- large loans: Refunds of interest from large, high cost loans & logbook loans
- doorstep lenders: Provident – a template letter to ask for a refund
- Amigo and other guarantor loans: How the borrower of a guarantor loan can complain
- rent-to-own shops: A template letter to ask for a BrightHouse refund.
Commenting has now been turned off for this article.
Any questions can be asked in the comments below Wonga – Latest News .
Wonga refunds – this page is kept updated
Why the FSCS doesn’t cover payday lenders
What are the policy lessons from Wonga?
kirsty says
Just got my email this evening, £65.23 out of almost £1500. Well somethings better than nothing !!
DM says
Getting £510 of an £11,828 claim. Was hoping for 10% but glad it’s not 2%. Sara, I know you will have loads of posts on this but wondered if the settlement figure will still include a proportion of the 8% interest redress and if there is any potential tax liability on this amount?
Ian says
Can the cmc still ask for 30% under the unprecedented circumstances surely somethings got to go our way can they legally get away with this i didnt receive 100% of my claim so why should they still get 30%
Rob says
They will charge their fee on the reduced amount awarded. There’s no winners here apart from the shareholders who took the money and ran.
S a tate says
Absolute joke ..where is the missing 20 million…i payed more on intrest on one loan than the payout i am getting and had over 40 loans
Mr and mrs c says
It is a joke. Wish we had accepted their first offer now and not taken to the FOS! Over a 2 years wait and ending up thousands of pounds worse off because they didn’t do the decent thing and offer us full payment in the first place. Exact same thing has happened with QQ. offered a payment of 2 loans not 32. Finally got resolved by FOS and then QQ go into administration! Disgusting
Sam says
Off topic, but I took an early settlement offer from wonga back in October, they promised in the email of paid then within 40 days this would be marked as settled on my credit file this has not happened yet and whenever I ring I just get fobbed off with there’s currently a delay what can I do? I have it all in an email they sent re the settlement offer and marking it on my credit file etc
Michelle says
I believe that if you send proof to the credit reference agencies directly they will update your record
Sara (Debt Camel) says
but they should be sorted in the next 6 weeks anyway.
Sam says
Sorted as in wonga should have it sorted in the next 6 weeks so just hold on?!
Cheers
Sara (Debt Camel) says
Yes.
Lee says
Absolute bloody joke nearly £800 claim And inly getting about £30 I wouldn’t bloody bother
Tracie says
Just got my email
You will receive a payment of £42.15. Your payment represents 4.3p in the £ on your agreed claim value of £977.72
Oh well better than a kick in the teeth.
Now just waiting for Money Shop and WDA.
tony says
And quickquid :-)
Takethatmad says
Thank you for supporting us all during this frustrating time. Although we all feel rather annoyed with the system and process it is what it is! 4.3% is better than nothing but wasnt really worth the stress for most people.
Nick says
Is there no way to appeal to the government about this. It’s not right
tony says
Nope,there is simply not enough assets in Wonga to cover all there debts
Ian says
In all seriousness though i read a lot of posts on here near the end that really were dependant on getting at least double we are getting some were still in debt problems where even 10% would have been massive we have all been let down here not just by wonga but the government aswell who could have stepped in i just hope this dissapointment doesnt affect to many peoples lives their is help out there
Sara (Debt Camel) says
Quite right. If you are in a difficult or hopeless position, there is help out there. Pick up the phone to StepChange https://www.stepchange.org/how-we-help/debt-management-plan.aspx – they can help you turn things around.
M says
If the government stepped in with Wonga they would have to step in with all the other companies as well that go into administration or already have. Imagine how much that would cost. There is no hope for us. I would just like the FCA to admit they got it wrong for allowing these companies to do business in the way they did! And to not just carry on like nothing has happened.
Michelle says
It’s nothing compared to what they paid RBS yet the bankers still get their big bonuses
Turtle says
You will receive a payment of £483.96. Your payment represents 4.3p in the £ on your agreed claim value of £11226.73.
Tan says
So sad…😩😔😩 £9151 redress. £395 will be given back in the next month. that’s the food shop for the month and few bills. I knew and had a feeling even 5p in the £ was too good to be true. sigh.
Josephine says
I’ve just received my email and was really surprised to see the following on my email. How is it possibly that they kept any over payment made to them through a voluntary arrangement with Step Change but they didn’t see fit to tell me or refund me?! This has made me so cross. I’d accepted I’d get less than 10% but this takes the mick!
Note: Company records indicate that you were owed £25.95 by the Company as at 31 August 2018, making you an unsecured creditor in the administration. The amount owing to you is due to either an overpayment of a loan prior to the appointment of the Joint Administrators, or a remediation/compensation payment which the Company attempted to pay you prior to the appointment of the Joint Administrators that failed to reach you. The amount owing to you as at 31 August 2018 is unrelated to your redress claim.
Jonathan Adam says
There isn’t enough expletives.
Dave says
Yes confirmed 4.3p in the pound.
£277 for me.
Only luck I had is that I owed them £650 at the time they folded. Which included a lot of interest.
I wasn’t in a position to pay anyway and was also locked out of their on line account.
So I did not repay the last loan I had.
That got wiped so effectively I got the original loan plus the £277 they have now promised.
Another down side is that they now say they will pay within 4 weeks and not the deadline stated of 31st Jan as per earlier emails.
Sss says
Claim was 3034, getting 130. By considerably less I didn’t think it would be over 95% of it. That is ridiculous.
StacyT says
You will receive a payment of £63.14. Your payment represents 4.3p in the £ on your agreed claim value of £1464.79.
Better than a kick in the fanny I suppose ha-ha still not worth the stress that it’s caused for two long years though!
Jo says
I’m confused where the 8% on top has gone that was going to be paid. My payment was £772.48 and I’m getting £33.30 which is just 4.3%. I know it won’t be much but it can make a difference to some
Sara (Debt Camel) says
the £772 will have included the 8% – can you find the original email saying your claim was accepted, that should be clear about this.
Ricky says
Is this £93.88 an additional payment on top the redress payment??
You will receive a payment of £149.32. This payment represents 4.3p in the £ on the agreed claim value of £3463.81 (Accepted Claim Value) which is made up as follows:
1) £3369.93 (Accepted redress claim value)
2) £93.88 (Credit balance owing as at 31 August 2018)
Ian says
What does Trading payments and realisation costs mean in english, this adds up to 16million of the 40 odd million pot which was available?
Paul harrison says
Anyone received there money yet?
Andy says
Paul, in a word no not yet.
Snippet from the Wonga site FAQ:
” … The Joint Administrators have declared a first and final dividend. This is being communicated to all successful creditors on 29 January and payment of the dividend will be completed within a four-week period thereafter. … “
Sam says
I do not know if I am on the right page.
I have taken a no win no fee lawyer to blame for mis sold mortgage.
The law firm are asking me to take out a loan for £6800 to persue my case.
Is this normal.
Please help
S tait
Sara (Debt Camel) says
It sounds horrendous. Run a mile!
I suggest you go to your local Citizens Advice and ask for their help.
If you need a solicitor you want one that will take the case on a No win No Fee basis. If no one will then the case is probably very weak.
Very few of these cases are being won. Don’t get into debt hoping for something that is only going to make your solicitor rich.
Andy says
I did mean to add: The title of this article is so perfectly apt aka “Victims”
Nik says
My claim was £986. I’m getting about £43. It’s an absolute disgrace. There has to be more that can be done about this.
Mrs and Mr SD says
Exploited. Criminals. disgusting. Are a few words that sum all this up.
This should never have happened to so many people…. thought my claim would go toward ‘finally’ fixing some of the bills I fell behind on… but after a slap in the face the struggle to get back on track is still on.
And to think the people in charge were receiving millions in wages they don’t give a dam. They knew exactly what they were doing. This should of been shut down before anyone got in such trouble.
Matt brown says
What an absolute joke! My claim was £3600 + and I’m to recive £159 😂 and what’s better is I have to wait another 4 weeks to recive not even a days money ! Nothing but thieving criminals !
Darren says
I am disgusted at the amounts we are set to receive my claim was for £1170.14 and im told I will only get 4.3p in the £ and told my amount would be £50.44 surely this isn’t right for me or anyone else who “successfully made a claim ” talk about ripped off Tonga and now administrators take us to the cleaners F@@ked off !!!!!!
Valerie says
Look folks. I and all of you need to take a little bit of responsibility for willingly and eagerly taking out wonga loans not just a one off but many times. It’s over now and nothing can be done. Please if you are struggling ring and make an appointment with your nearest citizens advice. They are brilliant and will take the time to discuss your problems and that hour will be of much more benefit than spending another day fretting over wonga.
Michelle says
True. We weren’t forced but we were desperate and didn’t appreciate the cycle we were locking ourselves into. I’ve just been through my lending stream records and have emails selling me new loans the day after I cleared a default. That default should have stopped them lending to me. In my case had the payday lenders not been around offering easy money I’d have had no choice but to deal with my problems before they got out of hand
Sean says
It’s a joke. We get 4.3 in the £ whilst the administrators take 2.2 mil! Annoyed not to get above 10% but it’s money that wasn’t expected.
Jon says
I am amazed no law firm wants to pursue the government for their crap handling of the whole situation. To be discriminated against protection because I had to use a sub prime credit product is about as shitty as it gets. Still I guess I’ve not been starved to death by universal credit…ho hum.
My claim was £7500+. I’m gonna get £358 back. To be honest it’s made me very cynical of being a law abiding citizen in future. What’s the point?
Chris says
I will only get £92.40. My claim value of £2143.50…!
What a load of sh#t! and that’s putting it lightly! Glad Wonga and QQ went bust! awful companies!
Ian says
Hi sara I still owed 280 on a wonga loan my redress was 5800 so gettin 240 back surely they cant sell the loans to a debt collection if they do where does this extra money go? I will be out of pocket again by £40 if they sell the loan book surely everything has got to be legally wound up now.
Sara (Debt Camel) says
Have you not had an email explaining they are using part of your redress to clear the balance of the loan? That us what should have happened.
Ian says
So the 4.3% inludes the loans that wasnt paid back? All i have had is my redress email nothing about what i need to pay back yet in november i had an offer to pay 4.90 to clear my debt but didnt do it.
Sara (Debt Camel) says
You should NOT have received that offer in November, it was sent to some people in error. Are you sure you didn’t use two different email addresses for different sets of loans, so the administrators think these are separate accounts?
Ian says
No definately not only ever had 1 email address the redress i am gettin is worked to 4.3% no mention of any outstanding loan payments or never received any email i know i owed 280ish and stopped paying 11 a month october time.
Andy says
It still is unclear what will eventually happen with the load book, it seems a bit of a grey area still if you read all the text about it.
Given the way things have panned out really it should be closed, draw a line under it etc. Morally anyway, legally is a different matter. Those still owing ( in some cases a pittance ) should not be chased any further.
I am sure something like a statement on what will happen to these unpaid sums will appear at a future point.
For those who do still apparently owe them; I would not worry too much about it at the moment as they have afaik not been accepting payments for a while anyway.
Tommy says
I hope they sell the loan book I really do.
Why shouldn’t everyone else have to pay all there loans back while some people get away with it?
I hope they sell these debts on and maybe we can all bag ourselves another 50p in our pay packet
Sara (Debt Camel) says
Let’s talk practicalities here. The remaining loan book was worth c£60m at end August 2019. Most of which was 18 months in arrears then, so 2 years in arrears now. That will then have been reduced as:
– more monthly payments were made
– c 43,000 people with a loan outstanding had it reduced or wiped out by the redress from unaffordable lending.
– some people will have accepted the administrators 20% settlement offer in November.
The remaining loan book quality is very low. It isn’t surprising that the administrators decided back in September that a sale could not be achieved.
Ian says
Good for me its a bit of a moral victory for the people they exploited
Stacey says
Is this for every customer? Is there any benefit for those customers that borrowed more or submitted a claim earlier?!
Andy says
Hi Stacy,
Everyone will get that percentage if they had monies due.
I do not think if you paid and/or borrowed early or late will have any bearing on it as such. The “sums” have been calculated.
StrangerThings says
I can’t believe that no one has taken any action against the FOS. I waited nearly 4 years for the ombudsman. My decision turned up after the administration saying I was entitle to compensation on 60 loans. Loads of pages saying why. Now I get 4%! WhAt a joke. The FOS should pay me the rest for they’re uselessness. Who is looking at them?
Sara (Debt Camel) says
You were waiting from 2015? Very frustrating. But if FOS had moved faster, Wonga would have gone under earlier and you still wouldn’t have been paid :(