Wonga to write off the debts of 330,000 customers
Wonga is to write off the debts of 330,000 customers whose loans would not have been made under new affordability criteria being introduced by the pay-day lender.
Payday lenders 'have been missing affordability checks'
Wonga's admission that it lent to people who could not afford repayments is a "symptom of a wider problem" in the payday loans industry, the Citizens Advice Bureau has said.
Rachael Badger told ITV News said the CAB had been hearing that many companies were not properly checking whether customers could afford repayments.
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Headaches and questions for Wonga after mass write off
Wonga, under Errol Damelin, was lending irresponsibly on an almighty scale, 375,000 people is larger than the population of Cardiff.
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Three questions Wonga now needs to answer
After the payday lender admits it failed to properly check potential borrowers, it now faces a challenge to regain customers' trust.