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Wonga loan update

Update on our Wonga claims

Today I received an update email from Wonga about my claim, which is sitting now with their administrators. Anyone who took out a Wonga loan previously had until the 30th September to submit a claim with their administrators. Due to the demand from people who like me had taken out Wonga loans, all claimants will not get the money owed in full. Something they have communicated from the start of this process. A copy of the email has been provided below, confirming their indication to pay out, and asking for people to confirm their bank details are correct.

Wonga logo

Dear Miss Ellis

Case Number: #######
Third Party Reference:

We previously emailed you in relation to your successful claim in the Wonga administration. At the end of January, we will communicate by email the amount you will be due to receive as a dividend.

Please be aware, the payment you receive will be considerably smaller than your accepted claim value.

We will make an electronic payment (bank transfer) to your bank account. The account number we have on file for you ends with these 4 digits: ****####

If these 4 digits are correct, there is no need for you to do anything.

If these 4 digits are incorrect, please contact us immediately by sending an email to customercare@wonga.com . We will reply to you with a secure link to upload your new details. Don’t forget to include your full name, date of birth and claim case number.

It is your responsibility to update your bank details if they are not correct.

Kind regards,

The Joint Administrators

wonga.com
customercare@wonga.com

PAYDAY Loan Reclaim

Payday Loan companies go bust

Wonga has to be one of the most known payday loan companies. I wrote back in September of news that the company had gone into administration. What was so surprising about Wonga going bust, was that they were looking to expand and advertising was abundant. The company raised a £10 million rescue package but it just wasn’t enough to save them going under.

However, the financial climate changed as government legislation clamped down on companies that were giving loans which were unaffordable and payday loan companies were no longer able to charge such exorbitant fees.

Wonga’s payday loans were the crack cocaine of debt – unneeded, unwanted, unhelpful, destructive and addictive

Martin Lewis
Money

What can we expect to get back?

When a company goes into liquidation, the company who oversees this process will look at all of the company’s debts, before determining how much everyone is owed. Unfortunately, there is only a finite amount of money left to go around, and so their job is to distribute what’s left to all creditors.

Sara Williams, a debt adviser whose website has free templates for asking for refunds from payday loans, guarantor loans, and other sorts of high-cost credit is covering all the news about the Wonga administration here: Wonga – Latest News about refunds

I asked her how many people were getting the email I had. She said “The Administrators haven’t yet said how many borrowers had made a Claim that has been accepted – but it’s expected to be over 400,000. And I think they will all be getting this email as a check that Wonga has the right bank account to pay out to them. The pay outs should be by the end of the month, so we should know by about January 27th what percentage people are going to get paid. Don’t hold your breath – it’s not going to be large.”

Why is Wonga paying out?

The reason why people have been able to claim against Wonga is when the loans are deemed ‘unaffordable’. Just because you took out a loan with Wonga, does not mean you are automatically guaranteed a payout. All ‘affordable’ loans do not fall under this ruling. I submitted a number of claims, but any ‘reasonable amount’ which I would have been able to pay back was discounted. Any loan repayment in excess of a third of my salary was accepted as a valid claim.

Wonga advised that, Please be aware, if successful, the payment you receive will be considerably smaller than your accepted claim amount. The expected total value of all accepted claims received will significantly exceed the money available to be shared out. The money available to be shared out will not be known until all of Wonga’s assets have been sold or realised and certain costs and deductions have been taken into account.

Guide to eligibility for refunds

Wonga’s administrators notified me that I am eligible for a refund on some of my loans, which exceeded my affordability to pay back. Not all of the loans I took out were accepted.

What was the assessment criteria?

Loans have been assessed against a number of affordability criteria, which I have written about in a former article. To summarise, Wonga is only obliged to pay out if it is ruled that the loan was unaffordable.

My claim – watch this space!

Accepted loans

Loan Start DateLoan AmountPaid Interest and FeesAccepted/Rejected
25-06-2011£517.00£128.73Accepted
18-07-2011£589.00£169.68Accepted
15-08-2011£759.00£58.28Accepted
23-08-2011£800.00£188.23Accepted
17-09-2011£1047.00£285.18Accepted
17-10-2011£1000.00£279.51Accepted
16-11-2011£1083.00£155.80Accepted
15-12-2011£1000.00£142.25Accepted

Rejected loans

Loan Start DateLoan AmountPaid Interest and FeesAccepted/Rejected
10-02-2011£150.00£13.17Rejected
22-02-2011£280.00£62.84Rejected
21-03-2011£400.00£99.49Rejected
19-04-2011£400.00£87.92Rejected
23-05-2011£400.00£89.17Rejected

Summary

The overall claim value I have been told is £2,190.44, but it is clearly stated that I will not receive this in full. Watch this space for how much I will receive from Wonga on 30th January.

What's next?

What’s next…

Wonga’s Joint Administrators gave everyone a timeline in which they were going to look into all claims, which was 30th January.

Claimants were initially emailed and given until 30th September to submit a claim. Once all claims against the company had been collated, the administrators would then go through the process of allocating monies.

Hopefully, I will get something back, although it is yet to be seen how much of a percentage we will receive from the administrators at the end of January. Will keep you posted!

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