Wonga and Poundworld scolded by ASA for misleading ads October 8, 2014 Troubled payday lender Wonga and value retailer Poundworld were rapped over the knuckles yesterday by the Advertising Standards Agency (ASA) for failing to include crucial price information in adverts. A Wonga advert failed to disclose the annual percentage rate on its loans, while Poundworld sells some items which cost more than a pound. Wonga has not advertised [...]
Wonga advert banned for failing to accurately show interest rate on payday loans October 7, 2014 Yet another Wonga advert has been banned from British screens for failing to show the true cost of borrowing. After a week in which the controversial payday lender reported a 51pc drop in net profit and decided to to write off the debts of 330,000 customers, the Advertising Standards Authority (ASA) has hit Wonga [...]
Payday lenders: Don’t tar us all with Wonga brush October 5, 2014 The Consumer Finance Association, which represents payday lenders, says all short-term lenders should not be tarred with the same brush. The CFA was responding to suggestions that all lenders may be required to compensate customers. The calls came after online payday lender Wonga was accused of irresponsible lending and was forced to write off more [...]
Payday lender regulations to leave Wonga among the 1pc still standing October 4, 2014 A shocking 99 per cent of Britain's payday loan companies face oblivion next year under new guidelines. The Financial Conduct Authority (FCA) is bringing in a new cap on credit under new, stricter guidelines. The tough new approach has already forced Wonga to write off the debts of 330,000 customers. Wonga saw its profits halve [...]
Wonga mulls name change as it agrees to write off worst loans October 2, 2014 Online payday lender Wonga yesterday agreed to tighten up its lending criteria, and to write off more than 300,000 of its worst loans. And the lender fears its name is so damaged it could scrap the brand, or keep it only on some products rather than for the whole group. The firm has come under [...]
Wonga to write off debt for 330,000 customers October 2, 2014 Wonga is determined to clean up its image. The payday lender has announced that it will write off the debt of 330,000 customers, following discussions between new chairman Andy Haste and the Financial Conduct Authority (FCA). Customers who would not have had their loan applications approved under the new system, and have been in arrears [...]
Wonga set to ditch its Newcastle United sponsorship deal after crash in profits September 30, 2014 Wonga is considering scrapping its Newcastle United sponsorship deal and might never go back into TV advertising, after a major fall in profits last year. The online payday lender had a meteoric rise powered by catchy adverts, but profits crashed last year. It is paying customers £2.3m in compensation for sending debt collection letters from [...]
As Wonga profits slide, will regulatory pressure squeeze payday lenders out of the market? September 30, 2014 John Lamidey, senior partner at Arminius Associates and former chief executive of the Consumer Finance Association, says Yes. The Competition and Markets Authority says that 83 per cent of payday lending customers have taken out a loan online, and 29 per cent have done so on the high street (12 per cent use both). The [...]
Payday lender Wonga profits plummet by more than 50 per cent September 30, 2014 Wonga’s profits halved last year, as the controversial payday lender paid the price of mounting operating costs. Analysts had expected to see a sharp fall in profits of around 41 per cent, but Wonga’s 2013 results told and even sorrier story. Net profit plummeted 51 per cent in 2013 to £30.6m, compared with [...]
Wonga braced for sharp fall in its profits September 25, 2014 Online payday lender Wonga is set to report profits of £50m for 2013, down from £84.5m the previous year, it was reported yesterday. The high-profile firm has been beset with problems in the past year, with founder Errol Damelin stepping down as chairman and chief executive Niall Wass quitting after just six months in the [...]