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Cuddly puppets axed as Wonga attempts big clean-up | Cuddly puppets axed as Wonga attempts big clean-up |
(about 20 hours later) | |
After its regular appearances as the whipping boy for all that is bad in payday lending, Wonga is attempting to offer a new face to customers - and its critics. | After its regular appearances as the whipping boy for all that is bad in payday lending, Wonga is attempting to offer a new face to customers - and its critics. |
Andy Haste, the former chief executive of the insurance giant, RSA (owner of More Than), is to become chairman of the company and his first job will be to announce a review of how the business operates. | |
Part of that will be to clean up Wonga's advertising and Mr Haste told me that the Wonga grandparent puppets will go. | Part of that will be to clean up Wonga's advertising and Mr Haste told me that the Wonga grandparent puppets will go. |
He said Wonga did not want to be associated with "anything which inadvertently attracts children". | He said Wonga did not want to be associated with "anything which inadvertently attracts children". |
Mr Haste will also look at advertising during children's programmes as part of the review. The payday loan sector as a whole has been criticised for advertising during children's programmes. | Mr Haste will also look at advertising during children's programmes as part of the review. The payday loan sector as a whole has been criticised for advertising during children's programmes. |
Ofcom is already looking at the situation. | Ofcom is already looking at the situation. |
Respectable | Respectable |
Mr Haste says he wants to change the type of business Wonga is, even if that means it makes less money. | Mr Haste says he wants to change the type of business Wonga is, even if that means it makes less money. |
"Our goal is to deliver the original vision for Wonga - to provide short-term lending to the right customers in a responsible and transparent way," he said today. | "Our goal is to deliver the original vision for Wonga - to provide short-term lending to the right customers in a responsible and transparent way," he said today. |
"We will become a more customer focused, and inevitably in the near term, a smaller and less profitable business. | "We will become a more customer focused, and inevitably in the near term, a smaller and less profitable business. |
"However, we are determined to make the necessary changes and serve our customers in the right way, to repair our reputation and become a business with a long-term future and an accepted place in the financial services industry." | "However, we are determined to make the necessary changes and serve our customers in the right way, to repair our reputation and become a business with a long-term future and an accepted place in the financial services industry." |
The review will look at six areas: | The review will look at six areas: |
Wonga has faced its fair share of criticism - not least the recent revelation that it sent out fake legal letters to its own customers who were having problems repaying loans. | Wonga has faced its fair share of criticism - not least the recent revelation that it sent out fake legal letters to its own customers who were having problems repaying loans. |
Whether this process by Mr Haste will gain them more trust from their customers or politicians remains to be seen. | Whether this process by Mr Haste will gain them more trust from their customers or politicians remains to be seen. |
But, for Mr Haste, at least, this is the start of a process he hopes will make Wonga respectable. | But, for Mr Haste, at least, this is the start of a process he hopes will make Wonga respectable. |
Update 11:20 | Update 11:20 |
Andy Haste has said that he will "embrace" any interest rate cap set by the Financial Conduct Authority, which took over regulation of the payday loans sector in April. | Andy Haste has said that he will "embrace" any interest rate cap set by the Financial Conduct Authority, which took over regulation of the payday loans sector in April. |
It was reported at the weekend by The Sunday Telegraph that a new cap could be announced as early as this week. | It was reported at the weekend by The Sunday Telegraph that a new cap could be announced as early as this week. |
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