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Wonga launches price cap product

Wonga Group has today made a number of changes to its UK short-term consumer loans product (Wonga.com), including the introduction of a price cap.

In line with rules set out by the Financial Conduct Authority (FCA)* which come into force on 2 January 2015, new Wonga loans are now charged at interest of 0.8% per day and missed payments incur a one-off fee of £15.

Wonga has also introduced other measures including:

• Removal of £5.50 transmission fee

• Minimum borrowing of £50

• No customer owing more in fees and interest than amount they originally borrowed

Capproduct

Wonga has made a number of significant changes this year, including strengthening its lending criteria to ensure it only lends to customers who can afford to repay their loans and taking its advertising off air.

It has also overhauled its arrears process to better support customers who fall behind with repayments. This includes the introduction of a three day ‘grace period’ before applying any default fee, and halving the maximum time post-due interest can accrue to 30 days.

Tara Kneafsey, CEO, Wonga UK, said: “We’re pleased to offer our customers a cap-compliant product ahead of the FCA’s January deadline. This and all the changes we’re making at Wonga reflect our commitment to provide short-term lending to the right customers in a responsible and transparent way.”

Response by Editor Published: Categories Wonga Cap FCA

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk