Northumberland County Council Trading Standards Service is urging residents to keep a tight grip on their finances following the collapse of lender Wonga.
Wonga Group Limited and WDFC UK Limited (Wonga) have been placed into administration but their debts don’t die with the business.
Insolvency Practitioners from Grant Thornton have been appointed as administrators to manage the firm’s business and affairs and they will continue to operate Wonga until a buyer for the business can be found or decisions are made about what will happen to the companies’ assets.
Residents are advised that they need to be aware that nothing will change for them other than it is the administrators that will be dealing with their loans and payments.
Importantly, the debt will not be written off and it is essential that customers continue to make their payments for their loans.
If any customer is struggling to repay their loans, then they can get free and impartial guidance from Citizens Advice or the Money Advice Service.
People with a poor credit rating looking for loans are also being urged not to use a loan shark.