Payday loan giants Wonga cut third of staff
Payday loan giants Wonga have announced that they are to cut a third of their staff, 100 positions in the UK, and their entire staff based in Ireland and Israel.
This is following a severe clamp down on payday loan lenders and under new rules all payday loan lenders will be listed on independent price comparison websites. Each lender will have to list a summary of the costs of the loans, including any additional fees for late or missed payments and the impact that these will have on the total cost of the loan.
With customers having access to comparison websites, they will be able to make an informed decision when it comes to borrowing. On viewing real payday loan costs it is likely that many will be deterred from borrowing in this way, meaning a reduction in customers affecting the amount of staff needed to process applications.
Payday loan lenders have been criticised for misleading customers when it comes to borrowing, resulting in complaints to the financial ombudsman which led to a full investigation into payday loan lending practices by the Financial Conduct Authority (FCA).
The whole investigation has been to safe guard customers, ensuring that they are treated fairly when it comes to borrowing, without being mislead which could lead some into serious debt problems worsening their well being and quality of life.