Wonga collapses into administration

Payday loan company was struggling under a welter of customer compensation claims

Wonga, the payday lender that became notorious for its extortionate interest rates and was a toxic symbol of Britain’s household debt crisis, has collapsed into administration after it was brought down by a welter of compensation claims.

Its collapse on Thursday leaves an estimated 200,000 customers still owing more than £400m in short-term loans. But borrowers were told to continue making payments and administrators are expected to sell Wonga’s loan book to another lending firm.

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from The Guardian https://ift.tt/2PgIBRJ