Wonga Boss Fires Back, Says His Payday Loans Are More Than Fair | United Kingdom | New
Henry Raine, the company’s head of regulatory and public affairs, told MPs that she had carried out extensive checks on applicants, adding: “Wonga’s business is all about lending to people who can repay us, c this is how we make money.
“The vast majority of people pay us back on time. We freeze interest after 60 days and 25% of people pay us back sooner. “
The exchange took place as the bosses of Wonga, QuickQuid and Mr. Lender were toasted by Commons’ Business, Innovation and Skills Selection Committee.
Mr Raine said only three percent of borrowers – about 40,000 of Wonga’s 1.25 million customers – still owed money after 60 days. He said the company’s track record compared favorably with that of credit card companies and banks.
When asked if he thought Wonga’s accusations were outrageous, he replied, “No, of course, we don’t accept that.
“The first thing you see on the website is how much it’s going to cost you. You choose how much to borrow and for how long.
The average loan was £ 174 over 17 days, with borrowers being regularly reminded and assisted if needed, he said.
Short-term lenders face crackdown from a new industry watchdog, the Financial Conduct Authority. He has the power to impose unlimited fines and order companies to return customers’ money if they have been treated badly.