Wonga describes clients to House of Commons hearing and confirms it will use debt collection agencies

The House of Commons public accounts committee has been told that the average client of short-term, high-interest loans company Wonga is under 40, earns around £20,000 and is more likely to be male.

It also heard that some 85% of their loans are paid back on time, and the company is about to start using a debt collection agency to chase the remainder.

Henry Raine, the company’s head of regulatory and public affairs, told the committee that it had made some six million loans and that 15% outstanding payments constituted a high risk for the company. 

He confirmed trial is about to begin with a debt collection agency.

He also criticised financial education, saying that in his view, a lot of money had been put into financial education in this country for not a lot of benefit.

The committee also heard from David Rees, director of legal affairs at home collections firm Provident Financial, and Mark Hannam, chairman of loan provider Fair Finance.

To watch the hearing, go to:

http://www.bbc.co.uk/democracylive/21034210

For reports of the hearing, go to

http://www.huffingtonpost.co.uk/2013/01/16/wonga-henry-raine-maths-public-accounts-commitee_n_2488079.html?utm_hp_ref=uk

and

http://www.credittoday.co.uk/article/14746/online-news/wonga-confirms-plans-to-sell-debt