John Mann MP has welcomed the news that the Financial Conduct Authority (FCA) has forced pay day lender Wonga to write off £220m of customer debts.
He is now urging the Treasury Select Committee to call Wonga’s senior management to appear before the FCA and explain how they lent so much money to people, who they knew could never afford to repay it.
An investigation by the FCA, showed that Wonga was not taking the necessary steps to ensure that customers could actually repay the money they were being lent.
Following the news, about 330,000 people who were in arrears, have had their loans totalling £220 million, written off and they now owe Wonga nothing.
John Mann MP said “I welcome the latest step by the FCA to crack down on irresponsible pay day lenders and this is a company that has taken advantage of people in dire financial circumstances.”
“Sadly, it comes as no surprise to learn that Wonga knowingly lent money to people who will never be able to afford to repay a loan and it is morally right that they have been forced to write off these loans.”
“I have written to the Chairman of the Treasury Select Committee asking that he summons Wonga’s senior management to appear before the Committee to explain their actions.”
Wonga’s chairman Andy Haste, said a review of how the company was lending money, had shown the need for change at Wonga is “real and urgent”.