Newcastle United sponsor Wonga more than doubles losses to 80.2million

Losses at Britain's biggest payday lender and Newcastle United shirt sponsor Wonga have more than doubled to £80.2million over the last year.

Wednesday, 4th May 2016, 10:41 am
Updated Wednesday, 4th May 2016, 12:35 pm
Photo: Dominic Lipinski/PA Wire

Revenues from consumer lending collapsed from £217.2 million to £77.3 million in 2015, with Wonga blaming "stricter lending criteria" and the introduction of a regulatory price cap.

The comments refer to the Financial Conduct Authority's ruling that now requires customers to go through stricter affordability checks and the introduction of a 0.8% cap on the cost of payday loans on the amount borrowed per day.

However Andy Haste, Wonga's chairman, said things are looking up

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He said: "We expect 2016 to mark a turning point in our financial performance. With further funding planned for later this year, we're now in a position to move back into growth in 2016 and expect to return to profit in 2017."

Wonga has faced a barrage of criticism over the high interest it charges on its loans and it has been accused of targeting those who are vulnerable.

Mr Haste added: "We continued to focus on changing our culture to ensure customers are at the heart of our business, while strengthening our financial position."