Thousands of customers seeking compensation from the collapsed payday lender are being cast aside, MPs say.
The finances of 10,500 borrowers are being"damaged from beyond the grave" by collapsed payday lender Wonga, according to a committee of MPs.
These 10,500 Wonga borrowers had lodged complaints about previous payday loans being mis-sold due, in many cases, to their vulnerability and inability to repay. The Financial Ombudsman upheld his complaint and deemed more than 40 of the loans to be irresponsible, but the ruling came at the time of Wonga's collapse.
Those with genuine claims, such as Ashley, join the queue of creditors who may receive a fraction of the value of any company assets that can be sold by the administrators.Nicky Morgan, who chairs the Treasury Committee, said:"It cannot be right that over 10,000 people who may have been mis-sold loans are just cast aside, especially as many will be vulnerable consumers.
Andrew Bailey, head of the regulator - the FCA - said in a letter to Ms Morgan that, unlike savings providers, these short-term lenders did not hold clients' money or assets so it would not be"proportionate" or affordable for the FSCS safety net to cover the collapse of such lenders as well.
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