Wonga writes off loans for thousands of customers

Wonga writes off loans for thousands of customers

Wow.

We weren't expecting this:

https://twitter.com/TheFCA/status/517595913276366848

Or this:

https://twitter.com/TheFCA/status/517595957375291392

To put this in context, 330,000 people is about the same as the population of Leicester. That's a fair few people having their loans written off by this well-known pay-day lender.

The FT is reporting that this amounts to a write off of £220 million:

https://twitter.com/FT/status/517605923733659648

Wonga itself has announced that it is now making 'significant changes' to its business model:

https://twitter.com/OpenWonga/status/517585515743571968

The lender confirms that it will be writing to 'all of the customers impacted as soon as possible'. Customers have been asked not to contact the lender, or indeed any claims management companies. A programme will be launched by Wonga on 10 October to deal with these claims.

Wonga chairman Andy Haste stated today,

It’s clear to me that the need for change at Wonga is real and urgent. Our regulator is determined to improve standards in consumer credit and I share that determination. There is much to do in order to make Wonga a sustainable and accepted business, and today’s announcement is a signi

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