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Carl Packman comments on Wonga's profits

Written by Carl Packman Sunday, 16 September 2012 16:48
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''It comes as no surprise that Wonga, a payday lender, have today announced a surge in their profits.

 

Their net income has risen 225% to £37m while the number of loans the company provided in 2011 quadrupled to nearly 2.5m.

 

These figures are shocking in themselves, but this news comes in the same week that we find out workers borrow on average £300 just to get by. A study by Unite, of 22,000 adults, showed that almost half were borrowing money every month.

 

This is a sign of hard economic times that the likes of Wonga are able to capitalise on. 

 

And it is a situation not likely to go anywhere unless government policymakers do something substantial on the financial situation.

 

Proper regulation and an assessment as to why individuals feel the need to borrow every month is vital, but this current administration is treating payday lending with kid gloves, commissioning expensive and time-consuming reports to little benefit. 

 

The next credit crisis will hit consumers - and we can assume no bailout funds for such an event.''


Carl Packman is the author of the forthcoming Loan Sharks (Searching Finance September 2012)

Last modified on Sunday, 16 September 2012 17:01

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