LONDON: Short-term lender Wonga made a pre-tax loss of £37.3m in 2014 amid a major overhaul of the controversial company.
The lender, which made a pre-tax profit of £39.7m in 2013, witnessed a hefty drop in lending to UK consumers.
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Wonga admitted it needed to address “the problems of the past” and is predicting another loss in 2015.
Last year, it apologised and agreed to pay compensation to customers after using letters from fake legal firms when chasing debts.
That left it with a compensation bill of £2.6m to be paid to 45,000 customers, not all of whom have been located yet.
It also had to write off thousands of unsuitable loans. Debts worth £220m from more than 300,000 customers were cancelled, owing to a failure to assess properly whether those borrowers could repay.
