Wonga emails customers after agreeing to scrap debts
Payday lender Wonga has emailed around 330,000 customers to let them know it has written off their debts.
The company is set to lose around £220 million in loan repayments and another £35 million in costs as a result of writing off the interest and charges of 45,000 further customers.
The move comes after the Financial Conduct Authority found Wonga had lent money to people that could not afford to repay. The lender has since tightened its affordability checks.
The 330,000 customers having their loans written off are those with arrears of more than 30 days who would not have been allowed to borrow under the new lending criteria.
Interest and charges will be scrapped for another 45,000 customers who would also have failed to meet the new lending criteria but have borrowing that it up to 29 days in arrears.