Wonga-bashing isn't working

Responding to the announcement today of Wonga's profits, Mathew Lawrence, IPPR Research Fellow, said:

"Wonga-bashing isn't working. Wonga's profits of more than a million pounds a week make it clear that the campaign for affordable short-term credit is losing, while Wonga is winning. Wonga is proving that despite the efforts of campaigners, the payday lending industry and its sky-high interest rates are cornering this growing market in cash-strapped-Britain. Having lent to more than a million customers, Wonga are clearly the market leaders.

"What opponents of high cost credit should focus on instead is how to support the growth of an affordable short-term credit alternative that can match the payday lending industry for innovation and customer service, without the bad lending practices and rip-off costs. While we wait for the Competition Commission's review of the payday lending industry, it's vital that people struggling to make ends meet have other alternatives."