Wonga has long been accused of irresponsibly taking advantage of people in financial difficulties and offering them, loans at extortionate rates of interest but finally the regulator, the Financial Conduct Authority, tore them off a strip for their 'controversial lending practises' of granting loans to borrowers without checking that they could afford to make the repayments and cranking up the amount to be repaid when they couldn't.
Clearly aware that the FCA had the power to shut Wonga down, the Chief Executive was quick to announce that: 'We are clearly very sorry for what’s happened to our customers and are doing everything to put that right' before announcing they will be writing off £220m of loans to 330,000 people at an estimated cost of £35m to the company.
Not sure how they can cancel £220m of loans and it only costs them £35 but it must show how much they were fleecing their customers in the first place.
Now if only the FCA can do the same with the rest of the financial system starting with the banks we may be getting somewhere.
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