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Wowwo Q&A


Komentarze: 305

  • Oficjalny komentarz
    Permanently deleted user
    Community manager

    Latest news about Wowwo

    14th of April, 2022

    On the 14th of April, we had In Recovery Ask Me anything session.

    Please see the specific part here, where the Wowwo situation is explained in detail:

    29th of March, 2022

    Following up on the lengthy negotiations with the Turkish lending company Wowwo, where Mintos has taken a strong position to reach an agreement that is satisfactory for Mintos investors, Wowwo management provided an unacceptable proposal that would give not more than a 25% recovery level over a 36 month long recovery period, which was shared on our Monthly recovery updates.

    We thank you for understanding that this kind of negotiation is a subject of confidentiality, as strategic communication with the other party is one of the key tools in such a process. When it comes to outcomes of negotiations during different phases, we are glad to inform you about them as soon as possible.

    Since several questions have been brought up about hedging in relation to the Wowwo case, we’d like to share more clarity on this topic. Hedging is an effective tool for managing currency exchange risks. Since 2020, when the pandemic started, we have been more insistent that the lending companies hedge their currency exposure. On the other hand, some currencies can't be effectively hedged, as there is virtually no derivative (forwards, futures, options) market for them. Our experience shows that a well-run company with a good financial standing can withstand turbulent times and repay its debts, regardless of currency hedging. Hence we look into equity and asset position, group strength, portfolio size and health, amongst other things, to assess the company. 

    Prior to the deterioration of the Turkish Lira, our evaluation and insight into Wowwo’s financials showed the lending company as a well-managed business with good financial standing. This can also be seen in Wowwo’s Q3 2021 financials.

    Some of you have also brought up the following question: “How could Wowwo have a high Mintos Risk Score if they did not hedge their currency risk?”. Here we would like to remind investors that hedging is included in the assessment of the Mintos Risk Score. It is one of the many factors included in the calculation of subscore Buyback strength that is one of the four subscores that make up the Mintos Risk Score. Taking this into account, we’d like to reiterate that based on multiple factors assessed, Wowwo displayed good performance, with a good-quality loan book and strong financials.

    Also, some investors let us know that they weren’t aware Wowwo issues loans to Turkish consumers in the currency used in the country, the Turkish Lira (TRY), and not in EUR. We’d like to remind you that each assignment agreement that comes with the investment in a loan part and is the governing document for the investment, describes the currency in which the loan was issued. Furthermore, information on Wowwo's page on Mintos includes documents such as loan agreements, financials and others where the currency in which the loans are issued is stated. We explain this further in our Help Center. Nevertheless, after investors’ feedback, we made this information more visible across the platform for your convenience, for example, the loan details page.

    We assure you that we are evaluating all strategic approaches to the Wowwo case, including potentially pursuing legal action, to achieve the best possible results for investors on Mintos.


    10th of March, 2022

    In lengthy negotiations where Mintos has taken a strong position to reach an agreement that is satisfactory for Mintos investors, Wowwo management provided an unacceptable proposal that would give not more than a 25% recovery level over a 36 month long recovery period.

    Besides finding the amount and the timeline unacceptable, there is also a lack of certainty that the company will follow the recovery plan even with the amount proposed, and a complete lack of valid arguments that would serve as a basis for the proposal, such as the cash flow forecast model.

    Answering investors' concerns related to hedging, we would like to highlight that it is included in the assessment of the Mintos Risk Score for the lending companies, but it's only one of many aspects we take into account.

    Since 2020 we became more insistent on the Lending Companies hedging their currency exposure. However, some currencies can't be effectively hedged, as there's virtually no derivatives (forwards, futures, options) market for it.

    It should be also noted that FX risk is just another one among credit, macro, political, legal, and many other risks. If a particular kind of risk cannot be hedged, we mitigate it by requesting from the lending company more security in other areas, like having more stringent Equity/Assets covenants and so on.

    Wowwo, with its shareholding companies, had the equity/asset balance that seemed more than sufficient to cover any potential future losses. As we underlined in answers before, the issue with Wowwo is the lending company's unwillingness to meet its duties, and this is why we're preparing for a new course of action in this case.

    We will share all new details when we have new information. 

    3rd of February, 2022

    The core event that moved this previously successful collaboration into status “suspended” arose from the currency risk that materialized for Wowwo after the Turkish Lira saw a major decrease in value against the Euro in December 2021. Wowwo is issuing loans in Lira, while on Mintos investors are investing in these loans in Euro. Without currency hedging in place, Wowwo is facing a situation where they have a significantly greater cost to buy the needed amount of Euros to make payments due to Mintos investors. This drove the lending company to a decision to disconnect its API communication with Mintos, and stop making repayments to investors while negotiating proposals to deal with the currency losses.


    In our conversations, the lending company had suggested that instead of transferring due amounts in Euro, it would transfer borrower’s repayments in Turkish Lira at the current exchange rates, which would lead to a loss for investors in Wowwo loans on Mintos. We respectfully denied this proposal.

    Current status

    Wowwo not making payments that are due and not delivering the required information about the portfolio performance is a breach of the Cooperation Agreement.

    Mintos has sent Wowwo a notice about a material event of default, accelerating the total exposed amount of €18.5 million and stating Wowwo's obligation to repurchase all loans within a few business days after this notice. Not adhering to this request would be a breach of contract on Wowwo’s part.

    Our credit risk committee worked to propose solution alternatives, and we shared them with Wowwo. We came to a solution for restructuring that we believe will achieve the best outcome for investors on Mintos. Our position is that investors shall receive due amounts in Euro in full, restructured to account for the company’s challenging situation due to their currency exchange position.

    Next steps

    We continue our work to achieve the best possible results for investors, in the least given time. In most of the recovery cases, the best results are achieved with negotiations. We won’t make assumptions about the possible outcomes of the following developments in negotiations with Wowwo, but we do promise investors that we’re fully engaged to exercise all options. If it turns out that negotiations don’t lead to a satisfactory agreement, we will follow the next steps described in the Mintos recovery process which also entails the legal route.

    We will inform you as soon as we have news to share.

    Thank you for your understanding and patience.

  • Tobias Strube Graem

    I think Mintos should provide a lot better transparency on this topic going forward.

    When I as an investor see loans in EUR, I expect that they are actually made in EUR and not in any other currency which can provide a clear risk to me - it could just as well have been in Nigerian Naira or Mexican Peso... (I wouldn't have any chance to check it anyhow)

    Also I would DEFINITELY expect a company to have hedges in place if they are swapping their local currency into EUR to sell them on Mintos. Otherwise it should have a very bad rating!

    Can I expect that all loans in countries which has a different currency than EUR has done the same trick?
    How can I ensure if a company mitigate currency risks going forward?

    Mintos should provide these details for all loans if applicable!

  • João Neves

    Thank you for the update @....

    Keep up the good work and keep us posted.

    I'm still hoping for a full recovery including the interest accrued during the period funds were in recovery. Let's see how the situation unfolds.


    I see several topics in this discussion:

    First and formost the undisclosed currency exposure. I only select investments without the risk of currency fluctuations. Apparently that is, despite my active choice, not the case in reality. That is a Mintos Model problem. Especially as the company wants to act as a proper financial institution with full disclosure.

    Secondly -- looking at the track record of Mintos, when it comes to collecting bad debt from lending companies, that has not fulfilled their obligations, this is a worrying situation we find our selfs in.

    Out of the some EUR 6,600 I have in recovery only one lending company is paying small instalments on a regular basis (Express Credit). The rest are unchanged month after month. I find it very strange that lending companies can get off the hook so easily.

    It would also suit Mintos with more open and honest discussions with its investors about these matters. You quite often get polished standard replies that insults our intelligence. Typically communication about recovery and other matters only focuses on the successes, which in the case of my portfolio, were small and insignificant in comparison to the losses.

    Over the years I have come to realise that Mintos does not always have the necessary bargaining position to be able to create a reasonable balance in favour of the investors. The lending companies, at least the well run companies, have too many funding alternatives and thus bargaining power. That is a problem. A problem that - if unresolved - will lead to more losses in the future.

  • Daniel Muniz Moreira

    Dear fellow investors,

    Mintos is regulated by the FCMC of Latvia- Financial and Capital Market Comission. The FCMC is aware of Fintechs such as Mintos, as can be seen by their recent discussion: "on 9 December 2021, the Financial and Capital Market Commission (FCMC) with FinTech sector partners held an online discussion “Latvia – as the New Home for Global FinTech.", in which Mintos participated.

    FCMC objective is to take care for the public interests by regulating and monitoring the functioning of the financial and capital markets, by protecting the interests of investors, depositors and the insured persons, including financial literacy, the development and stability of the financial and capital markets.

    I consider that Mintos failed to properly disclose risks associated with currency fluctuation when offering loans in euros from Wowwo and classifying Wowwo as a safe lending company. I filed a complaint against Mintos within FCMC. FCMC´s email address is

  • Rodrigo Valle Teixeira

    Let me start by saying I really like Mintos. It is an awesome platform, easy to use, and I've had good returns up to this point. I really want to continue with it. But...

    I agree with the majority here on currency information and risk. One of two things need to happen in order for me to keep investing with Mintos in the future:

    Option 1 - The advertised currency of a loan MUST be the real currency, not a conversion to Euros, so that strategy filters work for the actual loan currency.

    Option 2 - For loans that include a currency conversion, the LO MUST contractually prove to have a hedge, a deposit, something that works as a guarantee against exchange fluctuations, for that loan to be included in a strategy filter as a loan in Euros.

    Rodrigo Valle - Portugal

  • Tobias Strube Graem

    Dear Mintos, can you please comment on the concerns in this community thread?

    Will you agree that Mintos has been lagging information about currency risks for the different loans and lending companies?

    Can we assume that all loans towards lending companies outside of the EUR-zone are having the same risks? Kazakhstan for instance? Which are hedged?

    If I cannot get a clear answer to this, I will be liquidating the rest of my portfolio as well.

    I will require these informations before proceeding with any investments on this platform.

    Br Tobias

  • Jose Lopez

    Dear my coinvestors. Fully agree on what you are suggesting RE legal actions to be taken. I work on the M&A industry (my daily duties are delivering technical & commercial due diligence for clients in relation to potential investments in the infra sector) and I am totally embarrased of myself for taking best practices for granted here at Mintos. I decided to invest based on Mintos' strategies and their good reputation so far (I accept my own responsibility on that, for sure), but at that time all risks were not disclosed clearly to investors. Not sure what word I should use in this case, namely (1) Misleading adverstising (Mintos scores, for instance), (2) Negligence (clear rules to take part of this platform, like hedging), (3) Fraud (Non-payments should trigger a LO default declaration, otherwise we are being fooled). 

    I would encourage our colleage Annija from Mintos to come back to us with clear responses at their earliest convenience to the points addressed earlier.  

  • Jose Lopez

    Lucija, Annija (Mintos), we all would be grateful if you could respond Petra Christina Zaagman's questions. We are not loosing money here, this is something out of our control, but our confidence on Mintos. We are requesting responses, specifically in a case where many of us invested "conservatively" in companies that are not actually what Mintos stated/disclosed from their scoring. I can accept loses and risks in my business, but I cannot accept being fooled or ignored. Please, communicate separately and privately to your investors in a clear manner (via email, for instance), with actions taken and to be taken in the next weeks. I am leaving this platform as I observe an extremely poor interest in preserving our confidence. As others have said, I am totally let down by Mintos due diligence process and internal procedures to score companies, this scoring is totally useless. Not factoring FX hedging into these scores may be a case of gross negligence and the poor information provided to your investors in this context may be understood as a willful intent for many of us to invest in these LO, would we invest here if all these risks had been disclosed? We took for granted many things here and we thought that Mintos was a well reputed company with experts behind, not only scripts and software developers.

  • Daniel Muniz Moreira

    Dear fellow investors,

    In my opinion, it seems that this forum is an idea to keep the Wowwo case contained. We the investors talk to each other, and occasionally there is an incomplete response from Mintos randomly choosing an investor to respond to. There is lack of clear and objective information from Mintos.

    The contract and agreement that I have is with Mintos, not Wowwo. Therefore, what I am doing is the following:

    1) Instead of using the forum, I opened a formal complaint against Mintos using the email The base for my complaint is that I would like to know when a resolution of the Wowwo case will occur and I have not received this information. I received a complaint number, that can be referred to later as evidence that I opened a complaint, if needed for any future disputes. According to the Latvian law, Mintos has to respond in less than 15 business days.

    2) If Mintos´ response to the complaint is not satisfactory, I will take the steps informed by Mintos in their homepage:

    • If you’re a consumer, you can submit a complaint in accordance with the provisions of the Consumer Rights Protection Law of the Republic of Latvia to the Consumer Rights Protection Centre, located in Brivibas street 55, Riga, Latvia.
    • If you believe Mintos violates applicable laws and regulations, you can refer your complaint to the FCMC by emailing or by submitting a complaint using the online forms available on the government service portal
    • If your complaint is in line with the rules of the Ombudsman of the Finance Association of Latvia, you may submit a complaint by sending it to their office at Doma laukums 8A, Riga, LV-1050, Latvia.

    3) Completely terminating all my investments in Mintos.

    This is my personal approach for now and I am sharing it with you for information only. I am not responsible if you chose to use this approach or not and I do not intend to influence you to use it or not.

  • Matthias Dirk Jan Aarten

    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.

  • Jarmo Ville Viikki

    Yes, please no Turkish Lira. It was not according to original contract to get it in Liras. I lent euros, and I want euros back. I am living in euro zone, not in Turkey.

    In my opinion, they should take advantage on the currency fluctuation and convert even some extra Liras into euros in days when the rate pumps so that they will have less pressure on days when the rate dumps.

    I am not 100% familiar with Transferwise, but I believe this could be a good service for them to take advantage of currency fluctuations. 

    They should also negotiate to raise more capital (and immediately convert it in euros), then borrow Liras from Turkish banks/investors (and convert it into euros to repay to the investors). When they have more equity it should be easier to raise also debt.  

  • David Alfonsi

    @... Would be possible to gain visibility on how much in % would be the recovery if the payment would be performed by Wowwo in TRY and converted to EUR? I am asking because if the currency loss is e.g. 25% but the probability of losing all the money going via the legal way is 50% you might want to consider to give the investors the opportunity to vote. As they say around here "better an egg today than a chicken tomorrow".


  • Pi

    well, I think the idea that Wowwo will pay back nearly 20 M euros is unrealistic, credit companies as a rule do not use their own money. now, I understand that they are also something like a second-hand car dealership , but that is just the same - that means they trade cars, and they are buying them with borrowed money. SO, they may move a lot of money ( both in TRL and EUR ), but most of them are not theirs. and, yes, they are in breach of contract, but even if mintos succeeds in wining in court: it raises two questions :
    1. when - litigation can drag ( and will ) for years
    2. what exactly is the win - that they should meet their obligation?! that means that a company that actually lost money, will pay even more money in few years ( we can safely assume that TRL/EUR will not get much better ). obviously, they will go bankrupt

    the other side, is to accept payments in TRL, but that means to accept it for the next months and years.
    in order to be acceptable for us, that also means huge bump in interest rate. however, no risk will be mitigated: currency trl/eur (will already invested euros) and load default ( obviously their buyback obligation is amount to nothing ). and even if this deal is made, they are still in breach of contract , so litigation cannot be avoided.

    also, as I understand, we actually have no info about how wowwo loans we invested in, are performing at the moment, and we can safely assume that it's worse ( some loans are late ) than what we see in mintos . that is simply outrageous.

    I will suffer huge loss as a percentage from my investments, even my conservative mintos strategy has 10% in wowwo loans, but since there are dozens more originators who can go that way ( no currency hedge ), I think it is very important how mintos will handle the situation - wowwo should be wiped out(bankrupted) if necessary, but you cannot behave the way they did - stop paying without any notice and no proactive actions on the originator side.

    it will be wise also for the future that Mintos requires from any loan originator to mitigate currency risk by providing some capital buffer perhaps(based on some what-if scenario if currency depreciates 20%), maybe some currency option offered to investors if they want to receive the money in the loan currency with a proper increase for the interest rate, or to put it more simply - if loan currency depreciates against investor currency, raise the interest rate on current loans, issue new loans only in loan currency for some time,...

  • Permanently deleted user
    Community manager

    Thank you all for your active participation. We follow the conversation and appreciate your insights on the topic!

  • Richard

    Thank you for the feedback Mintos.

    Please continue with your current approach to this situation, which I support.

    It is clearly not on to suggest that investors should convert their holdings into Turkish Lira. Wowwo wished to borrow in Euros to take advantage of lower interest rates - the flip side of this is that they must take the currency risk. If they didn't properly manage this risk that it a problem for them - investors are entitled to their money back, plus interest accrued in Euros, as lent.

  • Pierre C

    The point is having an update from mintos once a month is not enough. Couldn’t they be more in task force mode and speed up the process. Meanwhile the money is not flowing…

  • I've requested Mintos yesterday a list of my loans that are facing the same situation..whether there are similar situations but got no response up to now! This is quite disturbing! Meanwhile i'm unwinding all my funds from Mintos.

  • Richard

    There is always going to be currency risk sitting with someone when lending in Euros but the underlying loans are with individuals based in a non-Eurozone country. Perhaps Mintos could make that clearer if some investors are not aware of that.

    Certainly Mintos should be factoring currency risk into their scoring mechanism. I can see it has a factor for 'Buyback strength' which includes capital sufficiency, so presumably they consider currency risk here but it is not explicit and I think it should be more prominent.

    Overall, in terms of managing the default now that it has happened, I am happy with the current approach of Mintos of notifying Wowwo that what they have done constitutes a default event. As far as I know Wowwo are still a going concern and still have reasonable capital resources according to their last report and accounts (though I can no longer find it on the website). Hopefully with the threat of legal action Wowwo will come back to the table and start paying again. Their capital resources are there precisely to act as a buffer so that they can pay should events such as unmanaged currency depreciation happen.

    Presumably Wowwo didn't fancy taking a huge currency loss and are now trying to mitigate this it on by asking Mintos (or its investors) to forgive them the currency depreciation. Not good enough though. Wowwo borrowed in Euros to take advantage of lower interest rates in good times and they now need to dig into their pockets to pay for losses in the bad times.

    Frustrating as it is, we need to give Mintos time to go through this process with Wowwo and make sure that Wowwo ends up paying back what is owed to all of us.

  • I must say I am shoked about this practice of Mintos. In your very own risk management site it states "Invest in your home currency to avoid exchange rate risk. Mintos currently supports multiple currencies.". I did exactly that. So there are two things going on:

    Mintos doesn't know what some lenders do with the money or it doesn't enforce certain security mechanism.

    It's a weak move to push all the guilt to Wowwork Turkey now. In case of a total loss, Mintos would actually be my first instance of law proceedings in this case. I am about 6 months in on this platform, my net loss thanks to Mintos/Wowworks is now 5% of my anualy revenue. So I am down to -3% so far. 

    If I can't even calculate risks since I can't trust Mintos, I'll take my investments elsewhere for a while and stop recommending Mintos. 

  • Rodrigo Valle Teixeira

    Hi Annija,

    That's a good change, thank you! It makes it easier to understand a particular loan's currency dependency.

    But..... Now we need two additional things:

    • Add the "Original Loan Currency" as an option in the Portfolio Filter.
    • Add the "Original Loan Currency" as an option when creating Custom Automated Strategies.

    I don't mind different currencies when the Loans are originated in a stable country, but the option to filter the original currency should be there. Different investors have different risk aversions, so it should suit everyone.


    Rodrigo Valle

  • Petra Christina Zaagman

    To Annija or any other Mintos representative,

    when will we receive updates on the situation? Since Wowwo has been moved from suspended to defaulted, is it fair to assume that there have been new negotiations? As an investor I understand there is always a certain risk of losing capital, but I'm finding Mintos to be too silent in this situation. Will updates be monthly? Every 2 weeks? Is there any schedule regarding meetings with Wowwo? Being kept in the dark is not what we need right now. We need more than simply 'we will give you updates when we know more'. When will you know more?

  • Mintos, this update is worrying. What do you mean 'not excluding legal action'? If Wowwo is not paying back even though the currency exchange is clearly more favorable than what they are willing to repay, legal action is the only next step. 

    As investors, we need to see now that Mintos takes a strong stance to truly protect our interests. The current actions are not good enough.


    In my opinion we cannot and will not accept anything less than payment in full. Meaning principal, interest and late payment fees. We must insist on a payment plan of 6 - 12 month and no longer than the car loans them self.

    There are many reasons for this:

    1) Exchange rate fluctuations is Wowwo's business risk. Not ours. They can hedge the risk. We cannot.

    2) It sets a very dangerous precedents - if a lending company just can decide not to pay for whatever reason. I assume that the contracts in place does not allow such behaviour and that legal action has been taken. In my experience legal action does not benefit from letting time pass.

    3) Wowwo has plenty of equity to take the exchange rate loss on their P&L for 2021 / 2022.  It is not going to be a great year, I am sure, but that is the cost of doing business without proper financial hedging. I hope they will learn from that. I suppose the owners will ensure that going forward.


  • I agree - legal action against Mintos should follow if we get nothing. As i mentioned b4, Wowwo took chance of the very poor and negligent Mintos’ due diligence procedures. We cannot forget they give loans to buy cars - so for me it makes no sense for them no being able to pay - the hard asset, the vehicle value has increased in Lira and kept the same in euros or even increased due to the scarcity of new vehicles in the market. I suggest all Wowwo defrauded investors get together and jointly address Mintos legal counsel.

  • Lucja (Mintos) would you also be able to answer my questions posted above? Investors' trust in Mintos is dwindling and so far, not enough is being done to restore it. Ignoring urgent questions in favour of answering a question that has already been answered is not helping.

  • fasmat

    3 months no progress, no legal action taken yet.

    This is the 3rd time something like this happened since I joined Mintos in 2017. I assume that all money invested in Wowwo will be lost, which means in the last 3 months I lost more money on Mintos than I earned in 5 years.

    On top of that it will probably take years until we maybe get back some of the money, and even longer until it is recognized as bad debt, just like with previous cases of LO defaulting / refusing to pay, so I'll have to wait until I can put my losses on my taxes and move on.

    I always invested conservatively and only in the highest rated LOs. Buyback guarantees and LO ratings my ass, both don't mean anything.

    Goodbye, I'll put my money elsewhere and I highly recommend others to do the same.

  • Petra Christina Zaagman

    Thank you Lucja (Mintos), this gives us as investors insight into how Wowwo ended up on Mintos, with a good risk score and as part of a conservative investment strategy. It also highlights the problem with Wowwo: they are able to pay, they simply choose not to.

    For me, this shifts my concern. Knowing that Mintos did do its due diligence in ensuring that Wowwo was able to compensate for the FX risk, the problem now becomes what kind of precedent will be set. If Wowwo can simply walk away with €20.000.000 without any consequences, other loan originators may follow suit. As an investor I expect Mintos to set Wowwo an ultimatum. This situation is not only about recovering investors' money, but even more so about recovering investors' trust that Mintos is capable of taking a strong stance and not letting malicious LOs get away with an uncooperative attitude. Which in turn would hopefully prevent other LOs from trying to follow in Wowwo's footsteps. 

    I will continue to follow this case to see what happens.

  • fasmat


    This is not acceptable.

    1. The currency risk was not disclosed before the situation happened. I don't care that now it's supposedly more transparent in which currency a loan invests in. It wasn't when you decided to block trading of Wowwos loans on your platform.

    2. It's unacceptable that a loan originator can just refuse payment while they continue to operate. They stole millions from investors and it is your obligation as representatives of users on your platform to act in our interest and take legal steps immediately. Less than 100% recovery is only acceptable if a) Wowwo defaults on their obligations and b) Mintos incurs losses as well.

    3. Your continued evasion of giving informative answers to legitimate questions of users and putting the blame on them for "not being aware of the risks" is insulting. You didn't properly disclose the risks and IT IS YOUR JOB to act in THE INTERESTS OF THE INVESTORS, which you refuse to do.

    To everyone in the thread: any legal steps we can take against Mintos? I think I remember someone already posting they have filed a complaint.

  • Jarmo Ville Viikki



    As long as Wowwo is doing business as usual, I am expecting full recovery.



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