Controversial payday lender Wonga is to write off all outstanding debts for around 330,000 customers following pressure from regulators and MPs. The £220m write-off applies to debts owed by customers who are in arrears by 30 days or more. A further 45,000 customers who are up to 29 days in arrears will be asked to repay their debt without interest and charges, and will be given an option of paying off their debts over an extended period of four months. Wonga says it will work with the Financial Conduct Authority to identify if any further remedial action is required. Wonga’s recently appointed chairman Andy Haste said, “It’s clear to me that the need for change at Wonga is real and urgent. Our regulator is determined to improve standards in consumer credit and I share that determination. There is much to do in order to make Wonga a sustainable and accepted business, and today’s announcement is a significant step forward in that process.”
