The company announced on Thursday morning that they were no longer accepting applications for loans but would continue to serve existing companies. However, by Thursday evening Wonga revealed they had filed for administration.
The news will put 500 jobs at risk and corporate undertakers at Grant Thornton have been appointed to carry out the administration.
Wonga and similar lenders have long been criticised by the church, most notably five years ago when the Archbishop of Canterbury, Justin Welby, announced the church would compete Wonga out of business by supporting what they saw as more ethical credit unions – declaring not to simply lambaste Wonga but to become their moral rival.
As part of that vision, the Just Finance Foundation was set up with Archbishop Justin as their President; an organisation which aims to provide responsible credit options to all through education about banking and debt but also by supplying fair financial services themselves.
Working with the Just Finance Foundation, James Henderson is the Development Worker for Transforming Communities Together in the Black Country and Staffordshire – who work with churches to do social action, including debt counselling and preparing people for universal credit.
He told Premier how he felt about the end of Wonga loans: “I think it’s actually good news on people with low incomes. In 2014, the…
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