Wonga to offer credit card

5 May 2016
Wonga credit card

Looks like Wonga are going into the credit card business, as it moves away from payday loans.

Of course, this week, Wonga announced that they'd been hammered with losses, so they're going to have to act sharply if they want to stay in business, seeing as new regulations are running payday loan companies into the ground.

Chairman Andy Haste said: "Credit cards are on the slate, but not until 2017-18."

The company will need permissions from the Financial Conduct Authority if they're going to go in this direction. Even if they do, it looks like they won't carry the Wonga brand.

Haste added: "Some of our propositions will be under different brands, as Wonga doesn't stretch."

Since 2014, the Wonga brand has been pretty toxic and consumers aren't likely to want to get a credit card with a company that might send them letters from fake legal companies, chasing up money.

Wonga aren't dead and buried yet and, if they do make moves into the world of credit cards, there's definitely going to be some people who might give them a go, if banks are turning them away or, indeed, they think all financial institutions are as bad as each other.

TOPICS:   Banking   Economy

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