Wonga Writes Off 330K Debtors

Wonga has written off debts of £220M owed by more than 300,000 customers (in arrears by more than 30 days), the hit to the P&L account is £35M (as it already had provisions covering a large portion of the £220M).

Unsurprisingly, Wonga now intends to increase checks on potential debtors to make sure that they can pay back the money borrowed.

Andy Haste, who became executive chairman in the summer, is quoted by the Telegraph:

"During my review, it became clear to me that this has unfortunately not always been the case. I agreed with the concerns expressed by the FCA and as a consequence of our discussions we have committed to taking these actions.

It’s clear to me that the need for change at Wonga is real and urgent. Our regulator is determined to improve standards in consumer credit and I share that determination. There is much to do in order to make Wonga a sustainable and accepted business, and today’s announcement is a significant step forward in that process.” 

Wonga is aiming to transform itself into a respectable financial company. This is but one step forward in the long process, another in my view will be to change its name to something less "streetwise".