We use a minimal number of cookies to enhance your browsing experience - you can change your settings at any time.
checkmyfile
The UK's only Multi Agency Credit Report

Take a FREE 30-day no obligation trial. Our offices will be open again on the 03 May '16.




  
Forgotten Password? Not a Customer? Sign Up

FREE Multi Agency Credit Report

See more than twice the information compared to any other UK Credit Report

Our Credit Report Monitoring service features:

Multi Agency Credit Reports

FREE checkmyfile Credit Scores & Ratings

FREE Identity Theft Assistance

Independent, Impartial, Expert Advice

See your Credit Report FREE

30 Day Trial - Cancel Anytime

trustPilot

More about Multi Agency Credit Reports

Proud to be different

The UK's most detailed online credit report is backed up with outstanding customer service

Making loads of Wonga

Posted in 'Personal Finance' by Barry Stamp

20 September 2012

Payday loan provider Wonga, which started out in 2007, has reported revenues of £184.7m in its financial year ending 31 December 2011, an increase of 225%. Net income grew by 269% to £45.8m, generated from over 2.4 million loans advanced in that period.

Such success underlines the dearth of alternatives available to ordinary consumers when seeking short term financial support – it is generally quicker, and sometimes cheaper, to take a payday loan than to obtain an overdraft from an established bank account in current economic circumstances. On the other hand, the payday loan sector attracts much criticism, built upon fears that credit may be too easy to access and should not be allowed to grow out of control. Wonga rejects two in every three applications, which gives an indication of both the level of demand and of the quality of the applicant pool.

Errol Damelin, Wonga’s chief executive, has recently told of the company’s expansion plans to other financial products, saying, 'You will absolutely see Wonga in areas where the traditional financial services players don’t deliver good value. We’ll do other stuff like payments and savings. We’ll probably do mortgages at some point.' Wonga has already expanded into business loans via Wonga for Business, which provides loans to companies of up to £10,000 for terms of between one week and one year.

He says that the growth of payday loans is down to the array of distribution vehicles that are now available. “78% of our customers own a smartphone and over a third have an iPhone, plus we understand that unexpected needs for short-term cash don’t always happen while you’re sat by a laptop,” he says.

Barry Stamp is a co-founder of Checkmyfile and is a Chartered Banker and a Fellow of the Institute of Credit Management. He can be contacted at barry.stamp@checkmyfile.com.

Barry Stamp

Barry is a Chartered Banker and a Fellow of the Institute of Credit Management. He has a degree in Statistics and Business Economics from the Open University. Barry writes mostly on news from the worlds of banking and mortgages.

Barry is Managing Director at checkmyfile.

Related Articles

Huge fine for ScottishPower

In order to resolve an on-going investigation by Ofgem, ScottishPower has agreed to pay out £18m following a litany of customer failings between June 2013 and December 2015.

Issues included not treating customers fairly, which is fundamental element of the Financial Conduct Authority (FCA) principles. Within the given period, the utility supplier received over a million complaints, which included issues with its complaint handling processes and billing systems.

Although Ofgem admitted customer service had improved since it started investigating the firm, ScottishPower is to pay out up to £15m to vulnerable customers who were impacted by the shoddy service they received; the rest will go to charity.

One big contribut .....

29 Apr 2016 by

George Coburn

 in 

Personal Finance

Full Article

Tesco to scrap Clubcard Boost for all-year round scheme

Tesco is to axe its existing Clubcard Boost structure, to concentrate on a value scheme that customers can benefit from all-year round.

Currently customers can exchange their points, online or instore, in multiples of £5 for £10 vouchers but this can only be done during specific times of the year. Instead, Tesco will be improving its ‘Boost Partners’ and will now be introducing a replacement which can be used throughout the year.

A spokesperson for Tesco explains, “In the coming months, we’ll be doing more to help you get the most out of the scheme, such as double points events to help grow your points balance faster and improving our Boost Partners offer, where you can already get up to four times the value of your vouchers .....

28 Apr 2016 by

Jasmin Stopford

 in 

Personal Finance

Full Article

Self-employed workers miss out on employment rights

With 4.8m classed as self-employed, some employers may be taking advantage of this employee classification to avoid providing certain benefits

28 Apr 2016 by

Sophie Regester

 in 

Personal Finance

Full Article

Accepted Payment Methods: VISA, MasterCard and Direct Debit

© Copyright Credit Reporting Agency Ltd 2000 to 2016. All Rights Reserved.

Authorised and regulated by the Financial Conduct Authority (690175)

United KingdomAustraliaGive Me Credit United States

Customer Feedback