WONGA PROFITS SOAR 70 PER CENT IN ONE YEAR – Wonga, the Pay Day Loans Company, has been featured in the news quite a bit of late. Unfortunately their appearances have not been about their success as a company but rather the extortionate interest rates they charge.
Financial figures release by Wonga show that the company is making £1.2 million a week and its profits have risen 70 per cent is just the last year.
According to Wonga it now approves over 10,000 loans every day to people requiring short term loans of up to £1,000.
This latest revelation has again brought Wonga into controversy as critics continue to admonish Wonga for profiteering on the misery and desperation of the poor.
In July 2013, the Archbishop of Canterbury, Justin Welby, attacked Wonga’s business model stating that Wonga was merely preying on the poor that ultimately pushes them further into poverty by mounting debt.
During the Archbishop’s statement he vowed that the Church of England would set up a rival company in order to put Wonga out of business. This was later retracted after the Church discovered that its own investment portfolio provided initial funding for the creation of Wonga and that setting up such a company was not feasible due to insufficient expert staff.
It has not yet been established whether the Church of England has liquidated its share holding in Wonga or whether it continues to profit from its investment
Stella Creasy, MP, continues to campaign against Pay Loans Companies such as Wonga as she feels that this industry comes at a heavy cost to the country; plunging the poor further into debt.
The Citizens Advice Bureau also attacked Wonga for it aggressive marketing which bombards people with glossy advertisements which clearly mask the misery of debt.
Wonga has defended its position insisting that it did lend responsibly and only to people who can afford the loans repayment.
Last year Wonga approved some 3.8 million loans; a rise of over 60 per cent on the previous year. There is no information currently available as to how many loans Wonga refused.
Despite the number of reports and people attacking Wonga it appears that the press it gets is certainly not doing it any harm and as the company formulates a strategy to expand its operations in other areas of lending it is expected that the company will continue to post growing annual profits.