Losses double for payday lender Wonga

Wonga, the UK’ s biggest payday lender, saw its losses double to £80.2 million last year as regulation of the short-term credit sector tightened.

The controversial lender said that it had overhauled its approach to credit risk to make sure that all its lending was responsible and affordable, while also introducing new three month loans.

Restricting access to lending has resulted in the level of default on UK loans falling from 6.6% to 2.8%.

Wonga has also strengthened its own board of directors and appointed new management in Spain and South Africa, where it also operates.

Chairman of the lender, Andy Haste, said the company had: “made real progress towards creating a sustainable business with an accepted place in financial services”.

Wonga now expects to resume its growth in 2016, before finally turning a profit in 2017.

Like other payday lenders Wonga has been slated by debt charities and politicians.

In response to public outcry, the Financial Conduct Authority has imposed a cap on the cost of payday loans of 0.8% of the amount borrowed per day.

In January, Wonga received authorisation from the FCA.