A Wonga advert has been banned for featuring dialogue between two puppets which suggested the APR on its loans was "irrelevant." The characters instead focussed on the cost of paying back a short-term
loan on time, rather than the annual interest rate. The ASA responded to complaints, banning the advert and reminding Wonga that is has a duty not to encourage the public to dismiss the APR on its
loans which can be more than 5,000%.
Read the whole story at The Guardian »
This was just the start of their problems. Now they have been forced to write of £200m of debt as they were charging people the wrong interest and these people would never have been able to pay the loan back.
Quite rightly the FCA is insisting upon proper affordability checks before a lender lends. I have written a lot about Short Term Loans which you can read on my site www.get-money-now.com.