Wowwo Q&A
This is a thread where you can ask your questions and write your Feedback about the Wowwo situation.
Dear Investors,
On December 17, 2021, we informed you that we made the decision to suspend loans originated by Wowwo from the Primary and Secondary Markets on Mintos until further notice.
The suspension is a cautionary measure to protect investor’s interests that is driven by macroeconomic changes which impact Turkish Lira exchange rate towards Euro. Given that Wowwo issues loans in Turkish Lira, but places them on Mintos in Euro, the company needs to pay the exchange rate difference from its own resources when forwarding borrower payments if Turkish Lira value drops.
As the Turkish Lira continued to depreciate rapidly, which could create a challenging environment for the company to meet its obligations towards investors on Mintos in a timely manner. We suspended Wowwo from the Primary and Secondary Markets.
Since then we shared also an update with you:
January 28, 2022
Dear Investors,
On Thursday, 27 January 2022, we had a meeting with Wowwo to further discuss possible solutions to the case of Wowwo's borrowers' repayments not being transferred to investors on Mintos. In the meantime, the funds due by Wowwo to Mintos and investors are moved to funds in recovery. The API communication system between Wowwo and Mintos was disconnected by the Turkish lending company due to currency risk that materialized for Wowwo as Lira continued to lose value against Euro.
In the most recent meeting, we exchanged information and proposals with the management of Wowwo, and we are planning to have a follow-up meeting next week when we will further discuss proposed options which will in the meantime be evaluated by both parties.
Mintos negotiations team is fully focused on coming to a resolution that will disrupt investors the least, as the case is currently classified “Stage 3”. You can find more about what this means in the article here:
https://www.mintos.com/blog/how-we-deal-with-loan-originator-issues-and-recovery-of-investor-funds/
As soon as we reach conclusions of value for investors and that can be publicly shared without disrupting our negotiation position, we won’t hesitate to update you immediately. In any case, we will share a more detailed follow-up after the upcoming meeting with Wowwo.
Please share your questions, thoughts and Feedback about Wowwo here.
-
Mintos: Are there any updates on the legal procedures against Wowwo?
1 -
Sharing an always up-to-date time line, telling whats the current
state and whats the next steps would be the minimum.1 -
Hello Rodrigo, Thomas,
Please be aware that while we strive to be as transparent as possible, there is a distinction between transparency and total transparency. As shared within the most recent update, we submitted the claim in the Turkish court against Wowwo in January. We are waiting for the court to review it, and we are asking additional questions regarding the claim. We will share further information in our monthly updates.
-1 -
Hi Mintos, where do we stand with respect to the law suit against Wowwo? I havent seen any update in the last months.
I am also keen to understand how it is possible that this business is still operational as of today but we are having difficulties to succeed in our claims.
I am also interested to understand what kind of lessons you have learned based on this use case to avoid that simular situations occur in the future.
3 -
Hi Marek, can you please comment on my previous question and provide an update which i do not receive on a monthly basis? Can you tell me where i can read those? Thank you
1 -
Dear Matthias,
Apologies for the belated reply. There are regular monthly updates and you can follow them directly in your Mintos account. Please follow these steps: login into your Mintos account, click on loans, then overdue. At the overdue page, you can see your overdue cases and next to each case on the right side, there is a status, such as restructuring or litigation- when you click on the status, the updates regarding each case will be displayed.
Regarding the current situation, please note that we have made a good progress during the court proceedings in Turkey and we are currently waiting for the next hearing which should take place in the following weeks.
Regarding the lending company's business in Turkey, that is unfortunately out of our jurisdiction and our only option is the one that we are actively pursuing, which is the legal way of court proceedings. Please remember that in case of any questions or hesitations, you are welcome to get in touch with us via our support channels and we will be happy to address your questions or concerns.
1 -
Please mintos learn to communicate !!
What would it means beginning of october when we are the 10 !
Why don't you communicate a date ! If the 10 of october you don't have a date for trial it won't happen in october!
Please give us the little amount of information you have !0 -
18th october and still no update. What does beggining of october means ?
Still expecting a date ? Please give us at least a date ?
Communicate something ....1 -
Dear Cyril,
As shared within our most recent update on Wowwo, the court was supposed to take place at the beginning of October. We should be able to provide you with more information within our next update which will be published in November.
Please note that we communicate our progress regarding the case with Wowwo within our regular monthly updates and we will follow this practice going further. In other words, more information will be shared within the next monthly update.
1 -
"the court was supposed to take place at the beginning of October."
That sounds like it didn't take place.
0 -
Hello,
Can we have some information please :(
At least a date I don't know ? what begining of february means we already passed 11 days of february.
It would be great for once to have info and not to wait a month more to learn something went wrong0 -
It has been 3 years with very little progress after the initial sentiment was that it would be a quick and full recovery of funds. It's not unlikely that this will take another 2-3 years before we see any funds being returned, yet the full amount.
I joined Mintos as an investor in 2017 and I'm quite disappointed how problems that started in 2021/2022 have been handled so far, within 3 years on multiple fronts (not just Wowwo) there has been little to no progress. My open claims almost match the interest I made within the 8 years I've been a user of Mintos. A huge waste of time and money that I should have invested somewhere else...
1 -
Hello,
Please mintos I consider past 15 feb it's not beginning of february...
Please give us a least a date i don"t know something :( :( :(
Why waiting for next update for nothing :( :(
Seriously we are waiting for years give us some info when we can have0 -
Marek (Mintos)
Mintos please ! Really it's been a week since my msg still no answer...
Can you just give us the date of the trial ? Does it occours or will it be postponed again!
Please mintos really we live in a world full of information we don't understand your politic to give smal droplet of info ONLY once a month
In wich world do you live ?0 -
Dear investors,
I can confirm that the court took place at the beginning of February as previously communicated. The next court hearing is scheduled for the end of March. Please keep in mind that the process is ongoing and we expect a number of further hearings related to our case with Wowwo. As usually, we will share more information within our regular monthly updates.
1 -
Thx Marek (Mintos) to hear some news
Would be great to have conclusion of the first hearing but glad to hear that's progressing
Thx!0 -
"At this point, we cannot disclose what was discussed during the hearings, as this could [...] provide Wowwo with additional information."
How could Wowwo receive additional information if only content from a previous proceeding (against Wowwo) were disclosed, in which Wowwo themselves participated? They already know the content – they were present (or was Mintos the only one there?). Disclosing this information would amount to a pure update or summary, without any evaluative elements, and therefore provides no new information to Wowwo.
Do you see the contradiction in your reasoning?
1 -
I am not sure if it was intentional but seems like in the refreshing of the Mintos UX, now it is almost impossible to see where ouroverdue loans are.
0 -
Dear investors,
The information about the overdue funds is at the same page as before, however we have optimized the page and thus changed the positioning of it a bit.
0 -
Marek (Mintos) I just read the new august report on wowwo.
Seriously that is crazy ! Every step and still aim next to the target ! Additional "expert added to the expert panel" !
Something is very strange there ? How on earth it so difficult to find the problem. It seems crazy simple ! Mintos lend money and wowwo doesn't give back what it borrow !
We are talking about a simple math addition and soustraction to determine who give more money than the other. (okay let's assume adition for interest rate)
Seriously mintos that really strange how on earth this is possible, something strange here !
Can you give more explanation on what does "the reports so far has not looked at the issue based on substance" what does the report look at ? about the meteo ? frog reproduction ?0 -
Dear Cyril,
From our point of view, the matter as such is as simple as you named it. However, please keep in mind that these are official court hearings and one can expect that we will do our best during these court hearings. As mentioned- this was based on our objections that the reports so far has not looked at the issue based on substance. Nevertheless, the processes are ongoing and as communicated earlier and expected, these processes should take approximately two-two and half years.
0 -
It was unfortunate that for Conservative pre-made portfolios you have kept such risky bets like this one of Wowwo and Kvivu (in both cases with an additional currency risk). I am stuck with these funds since 2021 and counting.. :-( Hope we can find a solution in a relatively short timeframe to preserve the due diligence image of Mintos (which for other cases has been good!)
1
Please sign in to leave a comment.
Comments
322 comments