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Cape Town - Wonga.com South Africa has confirmed that the announcement made by the Wonga Group on Thursday regarding its lending criteria and forbearance programme in the UK will have no direct impact on the SA business.
Debbie Sharwood, head of communications at Wonga.com South Africa, said that the announcement concerned the UK consumer loans business only and was not applicable to South Africa.
“This means that all South African customers will need to repay any outstanding loans that they may have,” she said.
She added that Wonga SA has been tightening lending criteria for some time now, and will continue to do so as the firm continues its focus on lending responsibly.
Wonga UK writing off £220m worth of debt
UK short-term lender Wonga is writing off the debt of around 330 000 customers worth about £220m, after being forced to overhaul its lending practices by Britain's financial regulator.
The Financial Conduct Authority said on Thursday that Wonga UK had entered into a so-called voluntary requirement agreement to make the changes, which ensures immediate redress for consumers while allowing the regulator to continue investigations and possible enforcement action.
Wonga's chairperson Andy Haste, who joined in July, vowed to reform strategy. "It's clear to me that the need for change at Wonga is real and urgent," he said on Thursday.
Wonga SA CEO quits
On Wednesday, Kevin Hurwitz left Wonga SA as its CEO, agreeing to remain in a part-time position until he and the company no longer feel this is appropriate or necessary.
“As an entrepreneur I feel that the time is right for me to pursue new business opportunities,” said Hurwitz.
“I’ve tremendously enjoyed my time as CEO of Wonga.com SA and I am confident that I leave the business in a really good state – with an extremely competent team and a strong growth trajectory.”
- Fin24 and Reuters.
