Payday lender Wonga gets a £10m boost from shareholders
Wonga shareholders have plunged £10 million into the loan company to save it from going bust.
The emergency cash injection was granted after Britain’s biggest payday lender approached its investors for help.
Wonga said its struggles were due to a “significant” increase industry-wide in people making claims in relation to historic loans.
A Wonga spokesman said: “Wonga continues to make progress against the transformation plan set out for the business. In recent months, however, the short term credit industry has seen a marked increase in claims related to legacy loans, driven principally by claims management company activity.
“In line with this changing market environment, Wonga has seen a significant increase in claims related to loans taken out before the current management team joined the business in 2014.
“As a result, the team has raised £10m of new capital from existing shareholders, who remain fully supportive of management’s plans for the business.”