The news of Wonga entering administration will have been good news for most people throughout the country. The behemoth company is suddenly on the other side of insolvency after chasing the public for debts for so many years. However, the question remains, what does it mean for borrowers?
If you have found yourself struggling to repay a payday loan, or any other form of debt, give us a call today on 0800 808 5124.
Do I Need to Keep Paying my Wonga Debts?
Unfortunately, the answer is yes. Although Wonga has officially entered into administration, they are not out of business yet, and the process is likely to continue for some time to come.
Entering into administration means that control of the company has been passed on to insolvency practitioners. These financial experts will do everything they can to make sure that Wonga settles all of its debts by attempting to obtain as much money as possible from the company.
This also means that the insolvency practitioners will need to try and reclaim as much of the money that Wonga owe as possible. Outgoing loans will cease entirely, assets will be sold off, and unfortunately, this also means they will make every effort to make you settle what you owe.
Will My Payments Change?
Although administrators want to reclaim everything owed as soon as possible, you have a legally-binding credit agreement which makes them unable to change your repayment terms.
Although this means that you will not suddenly be hit with a bill demanding you settle the debt in its entirety, the same document shows you are legally required to repay what you owe.
However, if you are struggling, you will still be able to speak to Wonga staff about amending the terms of your agreement. Remember; they want to receive as much money as possible. It is in their best interests to make sure you stay solvent, rather than going bankrupt and defaulting on the loan.
Can I Just Stop Paying?
Unfortunately, while the changes at Wonga are likely to be vast and their offices are likely in disarray, the one department which will be running smoothly is the recovery department. The administrators will make sure that this runs smoothly, in the interest of Wonga’s creditors.
Additionally, even if Wonga shuts its doors while you still owe them money, it is unlikely the debt will disappear. The credit agreement will still exist and can be sold on to a debt collection agency.
In short, it is vital that you continue to pay what you owe. If not, the process will remain largely the same:
- Your credit rating will be decimated
- You will receive various fees and charges
- Representatives of the court will arrive at your door
- Eventually, bailiffs will be sent to repossess your belongings to settle the debt.
The Good News?
The good news is that you may be due compensation if you feel you were mistreated or mis-sold a loan by Wonga. Keep in mind that administrators are there to make sure that all Wonga’s debts are settled, which includes you if it ends up that you are owed money.
This sort of thing is not unprecedented; after Cash Genie shut down in 2015, administrators appealed to anyone who felt they were treated unfairly to come forward for compensation.
However, keep in mind that it may simply be the case that there is just not enough money to get you the money you are owed.
Stay Away from Payday Lenders
If you are struggling to settle your debt with Wonga, do not look to other payday lenders for quick and accessible cash. Although the Financial Conduct Authority (FCA) has taken measures to control the damage they can cause, which has resulted in Wonga folding, they remain an incredibly hazardous option.
If you find that you are struggling to meet all of your financial commitments, then approach professional and qualified debt experts. At debt free life, we offer a number of solutions as well as ongoing support which will allow you to take back control of your finances.
Not only can we help you to write off up to 80% of the money you actually owe, but we can end creditor harassment and allow you to pay back what you owe in one single monthly repayment which we will distribute on your behalf.
Although it sounds too good to be true, one quick chat with our friendly advisers will prove otherwise.
Your journey towards freedom with debt just starts with a phone call; contact 0800 808 5124 today.
Alternatively, fill in our debt calculator, and one of our talented advisers will be in touch as a time which suits you.