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.
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.
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Any questions can be asked in the comments below Wonga – Latest News .