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FCA holds crisis talks with ailing payday lender Wonga

The FCA is holding meetings with prominent payday lender Wonga, as the troubled company could delay its fall into administration, according to reports.

The watchdog has stepped in to hold crisis talks with senior Wonga staff over the expected appointment of administrators, The Times reports.

Wonga raised £10m from shareholders a month ago but still appears to be in financial difficulty amid concerns over its ability to meet potential compensation claims.

A source told The Times that the FCA wanted more information on how an administration would impact customers on its short-term, high-interest loans.

The FCA has taken a stronger line on high-cost credit in recent years, including by capping fees. Wonga faced its own difficulties in 2014 when it received a fine for unfair debt collection practices.

FCA targets overdrafts and high-cost credit to help vulnerable consumers

Wonga was previously Britain’s largest online payday lender, but has been criticsed over annual interest rate charges of around 4,000 per cent.


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Case study: Gifting rules under lasting power of attorney

Paul has been appointed as the attorney for his father Jack. The lasting power of attorney was created several years ago but it has never been used. Jack can no longer make decisions for himself and therefore it is now up to Paul to make these decisions on his behalf. Paul’s younger brother Wayne is […]


Wonga — a recent history of the payday lender

A look back at some of the recent turbulent history of payday loan company Wonga. What is Wonga? Wonga is a UK payday loan company offering short-term loans to its customers at high interest rates. It was originally founded by Errol Damelin, a South African entrepreneur, in October 2006. Wonga is authorised and regulated by […]


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