Wonga Loans | www.wonga.com Reviews
About Wonga Loans (Closed)
The once dominant payday giant Wonga closed their doors for business in August 2018. The lender collapsed into administration after a wrath of compensation claims. They were however 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 is still live to highlight the administration notice and the Wonga claims portals is also in place here. Whilst the UK business has closed, the brand is still active overseas. The Spanish site has recently closed, but they are still actively trading in Poland and South Africa.
Going back to Wonga’s origins, they started out in the year 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 small £1 increments starting from £1. 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 usually 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 having always been in great demand, especially since August 2018. Based on Alexa 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 built in overdraft protection. You can also freely choose the exact number of days to borrow. Cash Asap was another flexible solution, but they’ve removed their shorter repayment options. Then there’s PiggyBank who have closed. Wonga’s main rival QuickQuid has also now closed down, as has PaydayUK and WageDayAdvance.
Last Check @ www.wonga.com: April 27th, 2021