Wonga Loans | www.wonga.com Reviews
About Wonga Loans (Closed)
The once dominant payday loan giant Wonga collapsed into administration in August 2018 and fully ceased trading on the 20th December 2019. A wrath of compensation claims pushed them over the edge, but they were already skating on thin ice through capping, fines and write-offs. Some may have seen the writing on the wall when they reported a heavy after tax loss of £76.5 million across 2015. The local site at www.wonga.com has been kept live to highlight the administration notice and to address further info. Whilst the UK business has gone, the brand lives on overseas. The Spanish site has closed, but the Polish site is active (although now owned by KRUK) whilst business has continued in South Africa.
Going back to Wonga’s origins, they started out in 2007. The market leader at this time was PaydayUK, with QuickQuid later challenging them. Wonga’s growth come after a few years when their enhanced flexible payday loan alternative started to gather real traction. Back then they operated 24/7 and paid out quickly for just several pounds extra at a time (competitors usually charged expensive CHAPS fees). Rather than borrowing monthly, the customer could choose what specific day they could repay. The amounts rather than starting at £100 also moved in tiny £1 increments from £1 onwards. This was later bumped to £50+ and their 24/7 hours were cut back to Mon/Sat (7am-8pm) and Sun (8am-5pm).
Cutting opening hours wasn’t an issue for those that had already borrowed. This was due to Wonga’s impressive in-house technology that automated lending decisions without the need for underwriting. If you wanted more money then they’d instantly calculate how much they’d be willing to offer. After industry capping, they maintained their flexible short terms, but added their 3 month Flexi Loan (6 months was later also added). Wonga’s popularity began to really take off when they invested in TV advertising. They were savvy to get their logo plastered on 3 football shirts at one time (Blackpool, Hearts and Newcastle). In their heyday, they surpassed 1 million customers and were issuing more than 10,100 loans daily.
Rivals & Similar Lenders Like Wonga
Flexible payday loans like Wonga have always been in great demand, especially since they bowed out. Based on Alexa traffic data, since this time it does appear that many past customers have moved on to SafetyNet. This wasn’t surprising as they too have shown great tech innovation through their credit line facility that can be accessed 24/7 alongside having built in overdraft protection. You can also freely choose the exact number of days to borrow. Drafty is another good line of credit, but you’ll need better credit to qualify. Cash Asap was another flexible solution, but they’ve now removed their shorter repay options. Most of Wonga’s key historic rivals have themselves now closed for business noting the likes of PaydayUK, QuickQuid and WageDayAdvance.
Final Check @ www.wonga.com: July 8th, 2021