Check If You Qualify

Wonga Loan Victims to be Left Out of Pocket

Sharon McDougall - 30th January 2020 - 2 minutes to read

Hundreds of thousands of people who were mis-sold loans by Wonga look set to be left without the large majority of compensation they’re owed.

Wonga entered administration in August 2018 with around 400,000 people rightfully claiming since that they’d been mis-sold loans by the company.

Now those people are being informed by the administrators of Wonga’s affairs that they’ll receive only 4.3 per cent of the compensation they should really be entitled to.

Wonga was one of the most prominent payday lenders operating in the UK prior to its collapse but it came to be vilified for its practices and for the ways in which it made large sums of money from heavily indebted consumers.

The Financial Conduct Authority (FCA) began to clamp down on payday lenders like Wonga from 2014 onwards and introduced rules that meant they needed to pay more attention to who they were lending to and what the impacts of their products really were.

It subsequently became clear that Wonga was lending money to people who it knew were never likely to pay back the debts they were taking on.

There was also a clampdown on the scale of fees and the nature of charges that payday lenders like Wonga could levy against their customers, many of whom were finding themselves spiralling further and further into problem debt situations.

Around 380,000 eligible claims of mis-sold loans have been received by administrators since Wonga went out of business, with the average value of the claims being made worth around £1,200 and the total amounts involved being in the region of £460 million.

Claimants have been told that they will only be paid 4.3 per cent of the amounts they’re owed but they should at least receive the relevant monies within the next few weeks.

In addition to its lending practices, Wonga was penalised by the FCA in 2014 for what were deemed to be “unfair debt collection practices”.

The payday lender was found to have been sending misleading debt collection letters to some of its customers, threatening them with legal action via law firms that didn’t really exist.

If you live anywhere in Scotland and you are struggling to fend off your creditors then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and entirely confidential consultation.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall


Other News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.


Why Choose Us

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

Usp Handshake

We offer an

Instant Initial Consultation

Usp Palm Wallet

We'll Help You

Lower Monthly Payments

Usp Hand Heart


Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.


Useful tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners