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| Archbishop of Canterbury 'furious over' Church investment in Wonga | Archbishop of Canterbury 'furious over' Church investment in Wonga |
| (35 minutes later) | |
| The Archbishop of Canterbury is understood to be "furious" after the Church of England confirmed it invests indirectly in online lender Wonga. | The Archbishop of Canterbury is understood to be "furious" after the Church of England confirmed it invests indirectly in online lender Wonga. |
| It comes after the Most Reverend Justin Welby told Wonga boss Errol Damelin the Church would try to force the firm out of business by boosting credit unions. | It comes after the Most Reverend Justin Welby told Wonga boss Errol Damelin the Church would try to force the firm out of business by boosting credit unions. |
| But the Church later said it invested in funds that provide money for Wonga. | But the Church later said it invested in funds that provide money for Wonga. |
| Lambeth Palace said an independent inquiry would be launched in to how "this serious inconsistency" occurred. | Lambeth Palace said an independent inquiry would be launched in to how "this serious inconsistency" occurred. |
| The amount of Church money indirectly invested in Wonga was less than £100,000 out of investments totalling £5.2bn. | |
| Payday firms offer short-term loans, often at high interest rates, and have been accused of leading people into more debt. | Payday firms offer short-term loans, often at high interest rates, and have been accused of leading people into more debt. |
| Archbishop Welby had said his plan was to create "credit unions that are... engaged in their communities". | Archbishop Welby had said his plan was to create "credit unions that are... engaged in their communities". |
| And Wonga's Mr Damelin had said he was "all for better consumer choice". | And Wonga's Mr Damelin had said he was "all for better consumer choice". |
| The Financial Times had reported that the Church's pension fund, which claims to explicitly ban firms involved in payday lending, had invested in US venture capitalists Accel Partners - a company that led Wonga fundraising in 2009. | |
| According to BBC religious affairs correspondent Robert Pigott, the Church's investment is said to be removed from its immediate control by "several layers". | |
| A Lambeth Palace spokesperson said in a statement the Church was grateful to the Financial Times for "pointing out this serious inconsistency of which we were unaware". | |
| The palace said the Church would be asking the Assets Committee of the Church Commissioners - a statutory body independent from the Church -" to investigate how this has occurred and to review the holding in this pooled investment vehicle". | |
| "We will also be requesting the Church Commissioners to investigate whether there are any other inconsistencies as normally all investment policies are reviewed by the [Church's] ethical investment advisory group." | |
| Archbishop Welby, a former oil industry financial executive who sits on the Parliamentary Commission on Banking Standards, has previously lobbied for a cap on high interest rates charged by loan companies. | |
| He said the Church could do more to help non-profit lenders to compete with payday firms. | |
| "I've met the head of Wonga, and we had a very good conversation," the archbishop told Total Politics magazine. | |
| "I said to him quite bluntly that 'we're not in the business of trying to legislate you out of existence; we're trying to compete you out of existence'." | |
| He said of Mr Damelin's response: "He's a businessman; he took that well." | |
| Mr Damelin later said: "There is mutual respect, some differing opinions and a meeting of minds on many big issues. | |
| "On the competition point, we always welcome fresh approaches that give people a fuller set of alternatives to solve their financial challenges. I'm all for better consumer choice." | |
| 'Social good' | |
| Earlier this month, Archbishop Welby launched a new credit union aimed at clergy and church staff. Credit unions charge their members low rates of interest to borrow money. | |
| The BBC's Robert Pigott said the archbishop's plan was to go to some of the 500 independent loan companies and say to them, "we will help you by letting you have access to our buildings and expertise". | |
| Our correspondent said the Church would not run the companies but would help them and allow them to work on its premises. | |
| "I think the archbishop would see this as a social good countering a social evil," he said. | |
| Meanwhile, Business Secretary Vince Cable has backed the archbishop's plan to force Wonga out of business. | |
| Mr Cable told Channel 5 News that the Archbishop had "hit the nail on the head". | |
| He added the Archbishop was "right not just to condemn abuse but to offer alternatives which are more ethical." | |
| Mr Cable also said that the government was considering ways of regulating the industry. | |
| "We're looking at whether we can stop advertising drawing people into payday lending who perhaps shouldn't be using it." |