Compensation delay from Wonga

VICTIMS of Wonga have been warned they face a long wait for compensation – if they get anything at all.

Families who were mis-sold loans with interest as high as 5,853pc will join a queue of the payday lender’s creditors and are likely to recover at best a fraction of what they are owed.

Even those who have already won a compensation claim could get nothing because there might not be any money left to pay them. Administrator Grant Thornton has been tasked with winding up the business – officially called WDFC UK – after it collapsed last month under the weight of surging compensation claims.

Mayfair hedge fund Kreos Capital, which is thought to be owed £10m, is first in line for any cash that can be recovered under the terms of a deal signed with Wonga. But those who borrowed have been ordered to carry on paying their bills as normal.