Insolvency practitioners from Grant Thornton are in the process of being appointed as administrators to manage the firms’ businesses and affairs. The auditor plans to update customers once the firm is in administration.
The FCA will continue to supervise Wonga once it is in administration and said it is in close contact with the proposed administrators on the fair treatment of customers.
The regulator said: “Customers should continue to make any outstanding payments in the normal way. All existing agreements remain in place and will not be affected by the proposed administration.”
However, the firm is no longer able to issue new loans.
Started affordability assessments
The regulator said if customers have any questions in the meantime about their loan they should contact Wonga on 0207 138 8330 (within opening hours) or visit the website.
In 2015 sales at the payday lender fell by 64% as it began using affordability assessments under its obligation to treat customers fairly.
The lender, famous for its macabre elderly puppets, subsequently reported a decline in revenues from £217.2m in 2014 to £77.3m in its full year to December 2015 and pre-tax losses of £80.2m.
At the time, Andy Haste, group chairman, said 2016 marked the turning point for Wonga’s financial performance.