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What’s gone incorrect with payday lender Wonga?

What’s gone incorrect with payday lender Wonga?

By Chris JohnstonBusiness reporter, BBC Information

Six years ago the founder of Wonga described the lender that is payday a “platform money for hard times of monetary solutions” .

Nonetheless it appears the long run hasn’t ended up quite the method Errol Damelin had hoped.

This the company is considering “all options” after reports suggested it was close to collapse week.

Its reversal of fortunes was prompted with a deluge of payment claims for loans applied for before 2014.

The Financial Conduct Authority ruled four years ago that Wonga’s business collection agencies methods had been unfair and ordered it to cover Р’Р€2.6m in compensation to 45,000 clients.

Ever since then tougher guidelines and cost caps have struck earnings for payday loan providers and dealt a apparently deadly blow to their business structure. Continue reading What’s gone incorrect with payday lender Wonga?