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Wonga's peer-to-peer offering closed down
We reported back in May 2014 that Wonga, one of the most well known brands within the financial services sector, had launched Invest and Borrow, a new peer-to-peer payday provider. Invest and Borrow charged borrowers a representative 75% ARP, but payed lenders a smaller 7.35% AER. If a borrower were to default, lenders are repaid the outstanding capital.
The Invest and Borrow website now has the following message:
We have decided to close down Invest and Borrow.
This means we have stopped making any new loans or taking new investments.
For borrowers there is the following statement:
We are cancelling all open loan agreements, and there is no obligation to make any further payments on your loan. We have emailed you to confirm this.
We have contacted Invest and Borrow to clarify the reasons for the closure:
As you already know, we have made the decision to close down Invest and Borrow. This was a business decision, no other specific reasons behind it.