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Wonga Continue to Grow

Written By On 11/09/2013

It appears that payday loan company Wonga's attempts to go world wide have proved successful as they announced profits of sixty two and a half million pounds. This was an increase of just over a third on their previous year.

They now have a presence in Canada, Spain and Poland with more countries planned in the near future.

However this has caused more controversy, as certain politicians and high profile individuals feel that the company is preying on the more vulnerable in our society.

Stella Creasy, Labour MP for the borough of Walthamstow in East London is blaming the Government for still not putting enough restrictions on payday loan firms as to the amount of interest they are able to charge.

She says

Those kind of profits show the consequences of the Government’s failure to act. A cap on the cost of credit is the most immediate thing we can do.

Wonga are based in Camden Town and in 2012 helped over one million people by granting on average each one of them four short term loans each. They actually receive about five per cent profit on the money they loan out.

However, not everybody agrees with the criticism they are receiving. Mathew Lawrence, from the Institute for Public Policy Research, the student thinktank network, feels that Wonga are just a company running efficiently. He thinks they are an easy target and feels that instead of shooting them down, it would be far more productive to concentrate on providing reasonable competition.

Wonga's founder Errol Damelin insists that his payday firm are 'upfront' and profits are not 'outrageous'. He added that their customers are happy with the service that they receive and feel they are given ' very good value for money'.