Newspaper article The Journal (Newcastle, England)

Reports Say Wonga Is Asking for a Loan Itslef

Newspaper article The Journal (Newcastle, England)

Reports Say Wonga Is Asking for a Loan Itslef

Article excerpt

NEWCASTLE United sponsor Wonga looks set to add nearly PS25m of debt to its balance sheet, according to reports.

Sky News has reported that Britain's biggest short-term loans provider has secured new funding from one of its existing shareholders to accelerate the turnaround of its business.

Wonga signed a four year deal worth around PS24m with the Magpies in 2012 which is set to end next season.

In 2014 there was talk about Wonga possibly severing its links with Newcastle United after 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 PS2.6m to be paid to 45,000 customers.

It also had to write off thousands of unsuitable loans. Debts worth PS220m from more than 300,000 customers were cancelled, owing to a failure to assess properly whether those borrowers could repay.

The new PS25m cash injection will be used to fund new loans and provide additional working capital, it has been reported. …

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