What is gone incorrect with payday lender Wonga?

What is gone incorrect with payday lender Wonga?

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

However it appears the near future have not proved quite the real 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 techniques had been unfair and ordered it to pay for ВЈ2.6m in compensation to 45,000 clients.

Ever since then tougher guidelines and cost caps have struck earnings for payday lenders and dealt a blow that is seemingly fatal their business structure.

‘Instant and clear’

Wonga had been launched in 2007 to provide loans for under thirty days to customers without the necessity to endure an application process that is lengthy.

“we now have dared to inquire about some questions that are hard like how do we make loans instant, how do we get cash to individuals twenty-four hours a day, seven days per week, how do we be completely clear?” Mr Damelin told the BBC in 2012. Continue reading “What is gone incorrect with payday lender Wonga?”