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Church plans to 'compete' Wonga out of business | |
(about 7 hours later) | |
The Archbishop of Canterbury has warned the online lender Wonga that the Church of England plans to force it out of business - by competing against it. | |
In an interview with Total Politics magazine, the Most Reverend Justin Welby said he had a "good conversation" with Wonga chief Errol Damelin. | |
The archbishop has criticised such companies for what he calls excessive rates of interest. | |
He said the Church could help non-profit lenders do more. | |
It has already set up a non-profit credit union for clergy and staff. | |
"I've met the head of Wonga, and we had a very good conversation," the Archbishop told the magazine. | |
"I said to him quite bluntly 'we're not in the business of trying to legislate you out of existence; we're trying to compete you out of existence'." | |
New unions | New unions |
Archbishop Welby has said he plans to expand the reach of credit unions. | Archbishop Welby has said he plans to expand the reach of credit unions. |
Earlier this month he launched a new credit union aimed at clergy and church staff. | Earlier this month he launched a new credit union aimed at clergy and church staff. |
Credit unions charge their members low rates of interest to borrow money. | Credit unions charge their members low rates of interest to borrow money. |
Wonga has said it charges around 1% a day on its consumer loans, which are short-term, and for small amounts. | Wonga has said it charges around 1% a day on its consumer loans, which are short-term, and for small amounts. |
In April 2013 the government announced an investment of £38m in credit unions, to help them offer an alternative to pay-day lenders. | In April 2013 the government announced an investment of £38m in credit unions, to help them offer an alternative to pay-day lenders. |