Wonga was a payday loan company based in the UK that provided short-term loans to individuals in need of cash. The company offered loans ranging from £50 to £1000, and the application process was entirely online. However, Wonga has since gone into administration and is no longer offering loans.
The speed at which Wonga paid out loans varied depending on several factors. One of the primary factors that determined the payout time was the time of day that the application was made. If a customer applied during business hours, the loan could be approved and paid out within a few hours. However, if the application was made outside of business hours, the payout could take longer.
Another factor that affected the payout time was the customer’s credit history. Wonga was known for providing loans to individuals with poor credit histories, but those with better credit scores tended to have their loans approved and paid out more quickly.
The loan amount requested also played a role in the payout time. Smaller loans, such as those for £50 or £100, were generally approved and paid out more quickly than larger loans. This was because larger loans required more scrutiny and verification to ensure that the borrower could afford to repay the loan.
Wonga also offered an option for customers to apply for a loan and have the funds deposited to their account within 15 minutes of approval. However, this option came with an additional fee, and not all customers were eligible for it.
It’s important to note that Wonga’s loan terms and payout times were not always transparent, and the company was criticized for its high interest rates and aggressive debt collection practices. In 2014, the Financial Conduct Authority (FCA) launched an investigation into Wonga’s lending practices and found that the company had been lending to customers who could not afford to repay the loans. The FCA ordered Wonga to pay £2.6 million in compensation to over 45,000 customers.
In August 2018, Wonga went into administration, and all outstanding loans were transferred to a debt collection agency. This means that Wonga is no longer offering loans, and customers should not apply for loans from the company.
In conclusion, Wonga’s payout times varied depending on several factors, including the time of day the application was made, the customer’s credit history, and the loan amount requested. However, Wonga is no longer in business, and customers should not apply for loans from the company. It’s always important to carefully research lenders and read the terms and conditions before applying for a loan to avoid falling victim to predatory lending practices.