Wonga to sack third of workforce

wonga

Troubled payday lender Wonga will close its Dublin and Tel Aviv offices and let a total of 325 employees go as its profits continue to fall.

The company came under fire last year for exploiting customers through excessive repayment terms and for the tactics used to secure these repayments.

In June, it was found guilty of falsifying legal letters to 45,000 customers and was ordered to pay £2.6m in compensation by the UK’s Financial Conduct Authority (FCA).

Since the ruling, regulations have tightened and the company is banned from rolling over a loan more than twice. It is also no longer allowed to try to take a payment from a borrower’s account more than twice.

Wonga is now operating under interim permission from the FCA and will need to apply for a full licence at a later date.

Explaining the decision to reduce the workforce, Chairman Andy Haste said that the rising costs of running the business were no longer sustainable.

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