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  1. National

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.

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  1. Chris Choi

Payday lenders could slip away as watchdog bares teeth

Wonga has accepted it lent to people who could not afford repayments. Credit: PA

If Wonga had found breaches in its lending process and taken the initiative in putting things right, they would deserve praise.

The truth seems to be different - behind the great "payday payback" is the Financial Conduct Authority, a powerful watchdog.

The FCA has new powers to regulate the payday sector and what we are seeing today is just the start.

Insiders at the Authority tell me - and I think they are correct - that many lenders are likely to simply leave the market between now and January - either because they cannot or will not apply new rules on checking customers ability to repay.

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