Wonga.com
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Wonga.com | |
Company type | Private |
Industry | Technology finance |
Founded | 2006 |
Founders | |
Defunct | 2020[1] |
Fate | Administration |
Headquarters | , United Kingdom |
Areas served | |
Key people | Tara Kneafsey (CEO) Grant Thornton(Administrators) |
Products | Payday loans |
Subsidiaries | BillPay (2013-2017) |
Website | www |
Wonga.com,also known asWonga,was a Britishpayday loanfirm that was founded in 2006. The company focused on offering short-term, high-cost loans to customers via online applications,[2]and began processing its first loans in 2007.[3]The firm operated across several countries, including the United Kingdom, Spain, Poland and South Africa;[4]it also operated in Canada until 2016,[5]and in Germany, Switzerland, Austria and the Netherlands through the German payments business,BillPay,[4][6][7]between 2013 and 2017.[8][9][10]
The company was responsible for inventing fully automated risk processing technology to provide short-term, unsecuredpersonal loansonline, including viatabletandmobile app.[11]However, it also drew wide criticism for the interest it charged, equated to anannual percentage rate(APR) of 1,509%;[12]an example of this was that a loan of £100 over seventeen days (Wonga's average loan term) required £113.60 to repay. The company was criticised heavily by politicians, including formerLabour PartyleaderEd Milibandas a leading example ofpredatory lending.[13]The firm's debt collection practices were also scrutinised by theFinancial Conduct Authority(FCA), who found the firm had lent money to many who would never be able to repay and Wonga agreed to compensate 45,000 customers for unfair and misleading debt collection practices.[14]
By 2015, the company began to incur losses, which were further increased by discontinuation of sponsorship deals, a data breach in 2017, and a surge of customer compensation claims. Despite an emergency cash injection from shareholders to prevent it becoming insolvent, the firm fell intoadministrationon 30 August 2018, withGrant Thorntonappointed to wind down the business, sell assets and identify creditors. By March 2019, administrators noted that compensation claims against the firm increased, but with many claimants unlikely to receive the full value of their claim.
History
[edit]Founding and growth
[edit]Wonga was co-founded byErrol DamelinandJonty Hurwitzin October 2006,[15][16]who derived the name from theRomanyslang term for money that was in use in some parts of Britain since the 1980s.[17]The plan for the company was to disrupt the short-term credit industry with a new branch of lender that provided transparency, exact control of amount and payment date, and immediate access to funds to customers, without hassling them through faxing or emailing documents.[18]Although both men had previous experience in internet start-up operations, neither Damelin or Hurwitz had any within retail banking,[19]which presented a problem when seeking out funding, as many potential investors they approached perceived the short-term, small-loans business as an unprofitable, risky backwater.[18]After being denied funding by UK banks, Wonga secured venture capital throughBalderton Capital.[20]
The company's first year was spent on software development for a beta website. The business model of lending only to those who could pay back reliably, as opposed to the much wider catchment practice ofpayday loans,required an algorithm that could fully determine risk in an automated manner – something they had difficulty developing in the early stages. In addition, Damelin and Hurwitz required the co-operation of leading banks to help get funds directly to customer's bank accounts as quickly as possible, by convincing them that customer identity could be provided without physical documentation, a factor in their plan that banks were uncertain with.[18]A beta website was eventually finalised and launched in 2007,[21]and within five minutes, Wonga was processing its first loan application; within a week, the firm faced its first loan default.[18]The subsequent months of operation showed increased demand, but traditional methods of credit risk assessment proved inadequate,[citation needed]leading the company to experience default rates of around 50%.[11]During the first year of operations, the company used this period to gather data on customer behaviour in order to develop their own proprietary risk technology.[22]
The full market launch of Wonga.com was officially made in July 2008, and within a year it had processed around 100,000 loans.[23]Through the experience of processing these loans, the company developed technologies which began to dramatically reduce the percentage of defaults.[citation needed]In July 2009 Wonga raised a further £13.9m of funding in a Round B led byAccel Partners,Greylock Partnersand Dawn Capital.[24]In 2009 the company was already profitable and default rates were below 10%, less than the average for credit cards.[24]A third round of funding was completed in 2011, for £73m led byOak Investment Partnersincluding additional investorsMeritech Capital Partnersand theWellcome Trust.[25]By the end of 2011, Wonga's technology could reliably reject two-thirds of applications and predict the ability of a customer to repay a loan by an accuracy of around 93%.[26]In May 2012, the firm expanded into South Africa, offering consumer loans,[27][28]and began testing their technology in November that year for a possible expansion into Canada.[29]
Decline and collapse
[edit]On 30 September 2014, Wonga announced that its profits for the previous year had fallen by 53% to £39.7 million. The company blamed the cut in profits to "remediation costs" – compensation paid to customers – which in total cost the company £18.8m, and predicted its profitability would be reduced through new controls set out by the Financial Conduct Authority (FCA) from June of that year. Along with conforming to the new rules set out by the FCA, which limited roll-overs of loans and forced them to increase affordability checks, price caps were introduce from the start of 2015.[30]The tougher regulations on the payday loan sector impacted the firm significantly, doubling its loss as its UK consumer base was greatly reduced; around almost 3.8 million of the 4 million loans it granted around that time were to UK customers. By the end of 2015, the company reported a pre-tax loss of £80.2m for the year – up from £38.1m the year before.[31]In April 2017, Wonga suffered a data breach which affected around 245,000 of its customers in the UK. The range of information stolen in the breach included details on customers' bank cards – information used by some banks as part of the login process for online accounts.[32]
On 4 August 2018, the company received an emergency £10m cash injection from shareholders after its chief executive warned it was in danger of becoming insolvent due to a surge in customer compensation claims.[33][34]On 26 August,Grant Thorntonwere lined up to act as administrators in the event Wonga became insolvent, pending a decision to be made within weeks,[35][36]and assumed these responsibilities the day after the firm went intoadministrationon 30 August.[37]Grant Thornton focused on conducting a wind-down of the business that would involve the sale of assets and identifying creditors,[38]along with handling claims for compensation. By March 2019, the administrators informed theTreasury Select Committeethat the number of claims had increased fourfold - increasing from around 10,500 to over 40,000 - since the firm's collapse,[39]but that the lack of assets and the sheer volume meant that many claimants — denoted as unsecured creditors — were likely to receive much less than they were entitled to.[39]
By January 2020, the number of claimants was 358,000. They shared around £23m in compensation, around 4.3% of what they were owed.[40]
Wonga was dissolved on 19 December 2020.[1]
Ownership and corporate structure
[edit]Over 180 million shares of the company are owned byventure capitalfirms, around 77.1%.[41]The balance of the company is owned by staff, board members and founders with Errol Damelin owning 26.5m shares through Castle Bridge Ventures, anoffshore trustbased in theBritish Virgin Islands,while Jonty Hurwitz owns 12.6m shares (around 5.5%) through a BVI company.[42][verification needed]Damelin resigned as Chief Executive in November 2013 to become part-time chairman and non-executive director. He resigned entirely as a Director in June 2014.[43]Hurwitz resigned from the company in November 2011 and left the board of Wonga in November 2013.[43]
By 2011, Wonga had refined its business model to such an extent that it started to make significant profits and in September 2012 it reported profits of £45.8m for 2011 from revenue of £185m, up from a profit of £12.4m in 2010.[44]
CEOs
[edit]- December 2006 to November 2013 –Errol Damelin.[45]
- November 2013 to May 2014 – Neil Wass.[46][47]
- May 2014 to November 2014 – Tim Weller.[48]
- November 2014 – Tara Kneafsey – Managing Director.[49]
Customer profile
[edit]Wonga claimed that its customers were "tech-savvy young professionals who previously used the banks to borrow money".[50]It accepted that its APR was "not cheap" but claimed that its typical customer was someone on a mid-level salary temporarily short of cash because of an unexpected bill, for example to buy a new central heating boiler or tickets to a music festival.[51]
Dr Gathergood of theUniversity of Nottinghamdescribed payday loan users as falling into two groups, those who have had a financial shock but can repay the money and those who were unable to control their expenditure, though he said lenders preferentially associated their clients with the first group.[52]The committee also looked atcredit unions.[52]Mark Lyonette ofAssociation of British Credit Unionssaid that although credit unions now provided 90 million loans in the United States, they were not able to match the "sophisticated automation and credit scoring behind the scenes" of the "high-tech, payday-lending Wonga model", though he welcomed the possibility of using post offices as a vehicle to expand the Credit Union market in the UK.[52]
Wonga said that most applicants were not credit-worthy enough to obtain a loan from the firm, but that it only lent to those with a good credit record. Some commentators, however, warned that taking a loan from a payday lender could damage the customer's credit record and their ability to obtain a mortgage, even where the loan was repaid years prior. Ray Boulger ofJohn Charcol,for instance, told BBCNewsnightthat "Our experience is that mortgage lenders will often turn down requests for people who have had a payday loan...",[53]and Robert Sinclair, Chief Executive of the Association of Mortgage Intermediaries, said "From a consumer perspective, anybody who takes out a payday loan is clearly showing some financial distress and existing lenders will think these consumers may be maxed out."[54]
Defaults and renewal of loans
[edit]![](https://upload.wikimedia.org/wikipedia/commons/thumb/f/f5/Wonga.com_screenprint_3_February_2014.jpg/220px-Wonga.com_screenprint_3_February_2014.jpg)
Wonga stated that if the money was not available on the day a customer has nominated to pay it back, a £30 fee would be charged and interest would accrue for a maximum of 60 days and that it did not allow automatic "rolling over" of loans, limiting to specific requests and to a maximum of three instances in accordance with theFinance and Leasing Associationlending code.[55][56]
On 28 November 2012, following concerns that small loans, intended to be short-term, could become prohibitively expensive, the government announced it would give theFinancial Conduct Authoritypowers to prevent indefinite rolling over of loans and effectively limit charges.[57]
In August 2018, the company announced that it would not be offering more loans because of the critical financial situation of the company. However, it decided to only entertain their existing clients.[58]
Sponsorship and public relations
[edit]![](https://upload.wikimedia.org/wikipedia/commons/thumb/f/f0/Papiss_Cisse.jpg/170px-Papiss_Cisse.jpg)
Wonga sponsored free travel on theLondon Undergroundon New Year's Eve in 2010, and posters were put up on the network advertising the website with the slogan "sometimes you need some extra cash". A member of theLondon Assemblysaid that it was 'shameful' that the Mayor of London, Boris Johnson, had allowed such sponsorship at a time of year when people are most vulnerable financially.[59]Media Weeknoted that the deal was "highly criticised" and thatTransport for Londonlater banned payday loan companies from sponsoring their services.[60]
In August 2012 the company launched OpenWonga, an online "digital platform that aims to 'inform the debate' around the brand".[61]
In October 2012 Wonga announced that they were sponsoring the football teamNewcastle Unitedfor £8 million a year.[62][63]Several MPs spoke out against the deal and the leader ofNewcastle City CounciltoldThe Guardianhe was "appalled and sickened" that the club had signed a deal with "a legalloan shark"[64]and in July 2013Papiss Cissérefused to wear the kit,[65]citing religious reasons as a practising Muslim despite "pictures... of him gambling in a casino".[66]The sponsorship was not renewed after the 2016–17 season.[67]
In 2012, Wonga.com sponsored ITV'sRed or Black?,which was widely criticised.[68]
The Guardianreported, in November 2012, that a computer in the Wonga offices appeared to have been used to remove from the company's Wikipedia page a reference to controversy over its sponsorship of Newcastle United Football Club and to delete the category of "usury"under the See Also section.[69]
Wonga sponsoredBlackpool Football Clubfrom 2010 to the end of the 2014–15 season.[70]Wonga's sponsorship ofHeart of Midlothian Football Clubended prematurely in 2014 after the club cancelled the deal.[71]
Awards
[edit]- Alternative Lender of the Year, Credit Today Magazine 2010.[72]
- Winner,The GuardianDigital Innovation Digital Entrepreneur Award 2011.[73]
- Number 1,The Sunday TimesTech Track 100 2011.[74][75]
- Fastest Growing Company, Media Momentum Awards 2012.[76]
Criticism
[edit]Alleged tax avoidance
[edit]The involvement of the Swiss company and the transfer of the trademark to it in 2012 have been seen byCorporate Watchas part of a scheme by the firm designed to avoid tax. According toAccountancy Age,in 2012, a net amount of £35 million was paid to WDFC SA, the profit on which will only be taxed in Switzerland.[77][78]Several Wonga executives, are now believed to be based in Geneva in connection with the business of WDFC SA.[79]
In 2013, an Irish subsidiary of Wonga patented "user authentication software", tellingCorporate Watchthat "it is common practice for international groups to consolidate their IP holdings in a location where the substantial activity relating to the IP is performed." Richard Murphy fromTax Research UKcommented that "the transfer of key business processes – especially those that are technology based and that can be protected by patents and copyrights – is a classic way in which companies try to move their profits between countries."[78]
Debt collection practices
[edit]In May 2012, the company was required by theOffice of Fair Trading(OFT) to improve its debt collection practices, after it was found that it had sent letters to customers in 2010 accusing them of committing fraud and saying that the police might be informed.Telephone scriptsused by Wonga warned borrowers working in the public or financial sectors that their terms of employment said they should not be in debt. Wonga appealed the decision and said it believed it had grounds for suspecting dishonest conduct by the specific customers to whom letters had been sent, and that they had been sent on isolated occasions more than 18 months previously and had not been sent since. It stated that it had put in place procedures to make sure similar problems did not occur in future, and that since then it referred cases of suspected fraud to an in-house team to investigate. The phone scripts had not been used since January 2010, it said.[80]In November 2013, after being challenged repeatedly by members of Parliament in aBusiness, Innovation and Skillsselect committeehearing on pay day lenders, Wonga said that they had not been censured by the OFT, but had been asked to make various changes, and that criticism by the OFT was "an open issue"; the company could not say more on an ongoing process. The practice of allowing debtors to "roll on" an existing loan was also called into question by the MPs.[81]Regulation for the consumer credit industry passed from the OFT to the newFinancial Conduct Authority(FCA) from April 2014.
In June 2014, the FCA found that Wonga's debt collection practices were unfair and ordered that they compensate affected customers.[82]The FCA found that between October 2008 and November 2010, Wonga had sent their customers letters purporting to be from non-existent law firms "Chainey, D'Amato & Shannon" and "Barker and Lowe Legal Recoveries", described as "fake" in reports, to collect money from them. In some cases, customers were charged for the supposed lawyers' fees for these letters; Labour MP Stella Creasy asked why the police were not investigating.[83]This practice had been uncovered by the OFT in 2011, after Wonga was asked to disclose information about its debt collection practices.[84]"Wonga's misconduct was very serious because it had the effect of exacerbating an already difficult situation for customers in arrears," said Clive Adamson, director of supervision at the FCA. He added: "The FCA expects firms to pay particular attention to fair treatment of those who have difficulty in meeting their loan repayments".[83]Richard Lloyd ofWhich?described the findings as "a shocking new low for the payday industry that is already dogged by bad practice and Wonga deserves to have the book thrown at it."[83]Wonga UK managing director, Tessa Cook, said: "Today is not a proud day for Wonga and I'd like to apologise".[83]As the misconduct happened before the FCA took over the regulation of payday lenders, it is unable to fine Wonga. It also said there would be no criminal investigation as it wanted to set up a compensation scheme (of about £2.6 million) as quickly as possible and a criminal probe would take time.[83]However, the issue was later passed onto the police for potential criminal investigation.[85]The head of theLaw Society,Desmond Hudson, said that Wonga's activity, which he qualified as dishonest, could amount toblackmail,deception,and other breaches of the law. TheCity of London Policebegan reassessing the case for an investigation,[86]but announced the following year that after a thorough review of all the material gathered, that there was insufficient evidence to progress an investigation.[87]
Consequent to discussions with the FCA, on 2 October 2014 Wonga agreed to write off the debts – thought to total £220m – of 330,000 customers who were in arrears of thirty days or more.[88][89]
Church of England
[edit]![](https://upload.wikimedia.org/wikipedia/commons/thumb/6/67/Justin_Welby_at_Seoul_Cathedral.jpg/170px-Justin_Welby_at_Seoul_Cathedral.jpg)
In May 2012,Justin Welby(then theBishop of Durham) called Wonga.com's high interest rates "shocking" and "usurious".Wonga declined to comment.[90]
By July 2013, Welby wasArchbishop of Canterburyand had been a member of the Parliamentary Commission on Banking Standards. He announced that he had had a "good conversation" with Errol Damelin and told him that he wanted to see competition, not legislation, put Wonga out of business.[91]According to the BBC the church would help credit unions by providing premises and expertise.[91] However Welby was reported to be furious when theFinancial Timespointed out that, despite denying involvement in payday lending, the Church Pension fund invested in venture capitalistsAccel Partnerswhich raised funds for Wonga in 2009.[92]
In a November 2013 interview forITV,Niall Wass defended the firm's practices and challenged critics to "go use the service, see if you think it is fair and transparent, take out £30 for ten days, pay it back after a week, look at the price, tell me if that is fair and transparent."[93]
By July 2014, The Church of England had severed its ties with the payday lender.[94]
Politicians
[edit]An all-partyEarly Day Motiontabled in November 2011 highlighted Wonga's "high APR" and sought to restrict the level of interest that can be charged on all loans by financial institutions.[95]British MPStella Creasyhas also proposed legislation for interest rate caps.[96]A Policis report on proposed interest rate capping said it would cause an exit from the market and those with access to the credit mainstream would be diverted to products such as overdrafts and revolving credit that could be higher cost than high APR products and those without access to credit would be diverted to the black credit market.[97]The Timessaid capping will further limit the availability of credit to people from regulated entities.[98]
On 20 November 2012, Creasy demanded an apology from the company afterThe Guardianreported that abusive tweets were sent to her by Wonga employees. Further investigation of the Creasy case showed that computers registered to Wonga.com's London office were used to abuse Creasy over Twitter, and delete criticism, as well as the reference to "usury"from theEnglish Wikipedia's Wonga.com page. Wonga.com admitted that a "junior employee" may have sent the tweets and defended what it regards as its right to correct "inaccurate" Wikipedia articles, though Wikipedia policy onconflict of interestsays such edits are "strongly discouraged."[99]Wonga.com later apologised to Creasy and condemned the Twitter comments, saying they were posted without the knowledge of the company and disciplinary action would be taken.[100]
In June 2013, the consumer minister called payday lenders to a summit to discuss "widespread irresponsible lending."[101]The article quoted the APR of Wonga -the largest lender as 5835%.[101] Wonga's pre-tax profits were quoted as £62.4m.[102]
In November 2013,Labour PartyleaderEd Milibandcriticised payday lenders for creating a "Wonga economy" and "a quiet crisis of thousands of families trapped in unpayable debt."[103]He also called for Wonga's cartoon-type ads aired during children's programmes to be banned, and promised to introduce legislation to that effect. He accused Wonga and other payday lenders of 'targeting children'.[104]
In 2018, once the company had gone into administration, chairman of the Commons Work and Pensions CommitteeFrank Fieldwrote to the Archbishop of Canterbury, Justin Welby, in a letter urging the Archbishop to lead aconsortiumwith Wonga's administrators and for theChurch of Englandto purchase the company's loans, preventing the company from selling its loans on to debt recovery businesses at "knockdown rates".[105]
APR and the cost of a loan
[edit]![](https://upload.wikimedia.org/wikipedia/commons/thumb/3/3d/Cost_of_borrowing_%C2%A3100_from_Wonga.com_for_30_days_17_Nov_2013.jpg/220px-Cost_of_borrowing_%C2%A3100_from_Wonga.com_for_30_days_17_Nov_2013.jpg)
The firm claimed its loans were often cheaper than unauthorised bank charges[106]and although APR disclosure is mandatory, it is a poor comparison measure for short-term loans.[50]TheBusiness, Innovation and Skills Committeeheard evidence from consumer money expertMartin Lewisthat the total cost of a payday loan was more useful than APR.[52]Lewis calculated in his blog that at a compounding interest rate of 4,212%, a £100 loan that is not repaid would in seven years amount to more than the USA's entire national debt, however, he explained that his calculation "bears little resemblance to reality", because Wonga does not charge compound interest. He also explained that he had performed this calculation purely to raise awareness of the risks of payday loans and concluded by expressing the hope that his example would make people "think twice before getting payday borrowing".[107]Wonga stated that they stopped charging interest altogether once a loan became more than 60 days overdue.[108]
Wonga argued that their rates may be high but the amount charged is transparent and without lenders like them, borrowers would be forced to use illegal lenders. In April 2014, aloan sharkin Manchester was jailed for illegal money lending and other offences despite claiming that his rates were lower than Wonga. His lawyer said: "Within his community there are large numbers of people who because of their debt history are very limited in terms of the places they can go, other than companies such as Wonga."[109]
In October 2014, the UK'sAdvertising Standards Authority(ASA) banned Wonga from using a TV advert that it said breached its code because of a claim that customers would save money. The authority said this was likely to be interpreted as a statement that Wonga's loans were cheaper than those of other lenders and was therefore a price comparison. It ruled that Wonga should consequently have informed consumers of its 5,853% annual interest rate.[110][111]The ruling was in response to a complaint from the charityCitizens Advice,whose chief executive Gillian Guy, said: "Adverts must be clear about what taking out a loan means and how much it will cost. The consequences are really serious when payday lending goes wrong. High interest rates and fees can mean that a small loan balloons into a huge debt... both the advertising and payday loan industries need to look at why so many adverts are not meeting the grade and change their ways".[112]It was the third Wonga advert to be banned by the ASA in 2014.[113]
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- ^Luke Edwards (30 July 2013)."Newcastle United striker Papiss Demba Cisse dons Wonga-sponsored shirt for first time".The Daily Telegraph.Retrieved28 September2013.
- ^Newcastle United sponsor revealed as Chinese gaming firm
- ^Sweney, Mark (24 August 2012)."ITV boss unapologetic over Wonga deal for Red and Black? gameshow".The Guardian.
- ^"Wonga apologises over abusive messages to Stella Creasy".The Guardian.21 November 2012.Retrieved30 July2013.
- ^"Blackpool's Wonga tie will not be renewed",The Times,30 January 2015, p. 57.
- ^"Hearts sever ties with payday loan firm Wonga",Jane Bradley,The Scotsman,15 June 2014. Retrieved 31 January 2015.
- ^"Credit Today Awards".Credit Today Magazine. Archived fromthe originalon 11 May 2012.Retrieved16 March2012.
- ^"Guardian Digital Innovation Awards Winners 2011".The Guardian.24 March 2011.Retrieved16 March2012.
- ^techtrack."Sunday Times TechTrack 100".Fastrack & Sunday Times. Archived fromthe originalon 7 May 2012.Retrieved16 March2012.
- ^"Toast of the Tech Champs".The Sunday Times.20 November 2011. Archived fromthe originalon 13 November 2012.Retrieved13 April2016.
- ^"GP Bullhound Summit 2014 – 2012".Gpbullhoundsummit.com.15 May 2014.Retrieved13 April2016.
- ^Calum Fuller (14 October 2013)."Wonga in tax avoidance strategy, claims Corporate Watch".Accountancy Age.
- ^abWonga's Swiss Wangle: payday lender moving money to tax havenCorporate Watch,10 October 2013. Retrieved 9 November 2013.Archived here.
- ^Wonga shifts part of business to tax haven Switzerland despite not offering loans thereNick Sommerlad,Daily Mirror,10 October 2013.
- ^Hilary Osborne."OFT criticises Wonga debt collection practices | Money".The Guardian.Retrieved13 April2016.
- ^Quinn, James."OFT instructed Wonga to make changes to its business".The Daily Telegraph.Retrieved13 April2016.
- ^"Wonga to pay redress for unfair debt collection practices".Financial Conduct Authority.25 June 2014.Retrieved25 June2014.
- ^abcde"Wonga chased debt with fake law firms, says FCA".BBC News.25 June 2014.Retrieved25 June2014.
- ^Jones, Rupert (25 June 2014)"Wonga to pay £2.6m compensation for fake debt firm letters",The Guardian,Retrieved 25 June 2014
- ^Rupert Jones (26 June 2014)."Wonga's fake legal letters passed to police".The Guardian.Retrieved26 June2014.
- ^Osborne, Hilary; Jones, Rupert (27 June 2014)."Wonga attracts high interest from City of London police".The Guardian.Retrieved30 August2018.
- ^Osborne, Hilary (5 February 2015)."Wonga escapes criminal investigation over faked legal letters".The Guardian.Retrieved31 August2018.
- ^Rupert Neate and Lisa Bachelor (2 October 2014)."Wonga writes off debts for 330,000 customers".The Guardian.Retrieved2 October2014.
- ^Khomami, Nadia (25 September 2015)."Teenager killed himself hours after Wonga cleared out his account".The Guardian.Retrieved26 September2015.
- ^Insley, Jill (15 May 2012)."Payday loans: bishop hits out at 'sinful' interest rates".The Guardian.Retrieved21 November2012.
- ^ab"Church plans to 'compete' Wonga out of business".BBC News.25 July 2013.Retrieved25 July2013.
- ^"Archbishop of Canterbury 'furious over' Church investment in Wonga".BBC News.25 July 2013.Retrieved25 July2013.
- ^Archbishop of Canterbury 'should try Wonga', boss urges.Interview with Niall Wass byLaura Kuenssberg,ITV, 4 November 2013.Archived here.
- ^"Wonga — a recent history of the UK payday lender".Money Marketing.14 January 2018.Retrieved17 February2018.
- ^"Early day motion 2448 – Level of Interest Rates on Loans".Retrieved7 December2011.
- ^Creasey, Stella."Consumer Credit (Regulation and Advice) Bill 2010–12".UK Parliament.Retrieved18 March2012.
- ^"Briefing note on the potential impact of price caps on low income credit users"(PDF).Policis.Retrieved18 March2012.
Some of those who lose access to credit will be diverted to the black credit market, where costs and risks will be significantly higher and outcomes more damaging
- ^King, Ian (24 January 2012)."Lending in the Public Interest".The Times.Retrieved18 March2012.
The upshot of placing restrictions on the terms at which payday loan companies do business will further limit the availability of credit to people from regulated entities. Such customers will then, likely as not, head to unregulated lenders whose complaints management procedure involves not the Financial Services Authority but baseball bats and snarling dogs.
- ^"MP demands apology after abusive tweets are traced to Wonga employee".The Guardian.
- ^Wonga apologises to Stella Creasy over abusive Twitter messages,The Guardian(retrieved 21 November 2012)
- ^abHilary Osbourne (25 June 2013)."Payday lenders summoned to government summit".The Guardian.Retrieved30 June2013.
- ^Hilary Osbourne (27 June 2013)."Payday loans – the industry in numbers-Choice stats from the payday loans industry, from the average consumer debt to Wonga's multimillion-pound profits".The Guardian.Retrieved30 June2013.
- ^Ed Miliband Takes On The 'Wonga Economy'Sky News, 5 November 2013. Retrieved 7 November 2013.Archived here.
- ^"Miliband calls for payday loan TV ads to children to be banned".BBC News.10 November 2013.
- ^Wilson, Harry (7 September 2018)."Frank Field urges Church of England to protect Wonga borrowers".The Times.Retrieved12 September2018.
- ^Murray-West, Rosie (19 September 2011)."Wonga's interest rate of 4,200pc? It's not an automatic red card".The Daily Telegraph.Retrieved17 March2012.
The company's loans of up to £400 are available for one day to a month, and interest is charged at 1pc a day.
- ^Fact: borrowing £100 at Wonga's APR costs more than the US national debt (over $14 trillion) after 7 years!Martin Lewis, moneysavingexpert.com, 21 September 2011. Retrieved 23 November 2013.Archived here.
- ^Wonga – APR Explained – 5,853% – A little film about a big number.by Wonga.com, YouTube, 2013. Retrieved 23 November 2013.
- ^Loan shark jailed despite plea for mercy to judge saying his rates were better than Wonga.comby Chris Osuh,Manchester Evening News,10 April 2014.Archived here.
- ^"ASA Adjudication on WDFC UK Ltd t/a Wonga".Advertising Standards Authority.Retrieved15 October2014.
- ^Osborne, Hilary (October 2014)."Wonga banned from using ad that didn't mention 5,853% interest rate",The Guardian,8 October 2014. Retrieved 9 October 2014.
- ^BBC News (October 2014)."Wonga TV ad banned for failing to show interest rate",BBC News, 8 October 2014. Retrieved 9 October 2014.
- ^"Ad Nauseum".Private Eye.London. 17 October 2014. p. 13.
External links
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