Simon Bowers reports in The Observer:
... Wonga's latest accounts show the firm wrote off £76.8m during 2011 because thousands of loans proved to be "uncollectable".
The bad debt bill is equivalent to 41% of Wonga's £185m revenues for the year and is almost four times the figure for 2010.
For the full story goto:
Carl Packman, author of the recently published Loan Sharks comments:
Wonga has always claimed it is different to other payday lenders, presenting itself as an alternative. One key way it does this is by using an algorithm of between 6-8000 data points, found online, to assess a person's creditworthiness.
But it has once again become apparent that this isn't as sophisticated as Wonga make out.
The company has been found to have written off £76.8m during 2011 because thousands of loans proved to be "uncollectable".
This only bolsters the argument that regulation is too weak by half in the UK and should be reformed so as to be fit for purpose.