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3 September 2013updated 22 Oct 2020 3:55pm

Wonga announces record profits – but should they have them?

Carl Packman asks if we can be comfortable living in a country where Wonga makes millions.

By Carl Packman

Wonga – the controversial payday lender – has today announced record profits of £63m for 2012, or roughly £1m per week. More evidence that as financial hardship tears through many families in the UK, selling expensive loans to hard-up people is a growth industry.

Last year PwC noted in a report that between 2008 and 2010 mainstream banks lent around 50 per cent of the total stock of consumer credit. This represented a drastic cut back, despite the fact that wages were declining in this period and the small occurrence of a financial collapse.

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