WONGA has insisted it can survive a clampdown on payday lenders despite tumbling into the red following a £100 million slide in revenues.
The controversial business posted a loss of £37.3m due to a significant reduction in UK consumer lending while it attempts to clean up its tarnished image. Revenues slid to £217.2m in the period.
Wonga’s reputation has been battered by a series of scandals, which emerged as a stricter regime was imposed on the industry by the regulator to prevent people being trapped in spiralling debts.
Asked if it is still possible to run a profitable payday loan business under the new industry regime, Wonga’s executive chairman Andy Haste said yesterday: “Yes. Our issues are legacy issues … Could you start a payday business today within the cap and be profitable? Yes.”
The firm announced plans to cut 325 jobs earlier this year.