Wonga, the UKs biggest payday lender, is considering insolvency following a surge in customer compensation claims in recent weeks.
On Sunday, the company confirmed that it was assessing all options after a sharp rise in complaints from customers claiming they should not have been given loans.
Placing the UK business into administration is understood to be one option being considered by Wonga, which targets customers shunned by traditional lenders. In addition to the UK market, Wonga also offers payday loans in Spain, Poland and South Africa.
On Sunday, Sky News reported that Wonga had lined up Grant Thornton, the professional services firm, to handle a potential administration. Grant Thornton declined to comment.
The development comes …
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