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Wonga receives approval from City watchdog

Payday lender Wonga has today received full approval from the Financial Conduct Authority (FCA) in a move that will boost the ailing loans company.

London-based Wonga has seen its profits slump in recent years after a series of setbacks, including a limit placed on the interest that payday lenders can charge, that have dented the loan company’s reputation.

The Newcastle United sponsor is the first payday loan company to receive full FCA approval as it seeks to expand its product offering away from the politically toxic short-term lending model.

Wonga’s Chairman, Andy Haste, told Sky News: “FCA authorisation is an important milestone for Wonga as we continue to build a responsible business with a long-term future, putting customers and good governance at the heart of everything we do.

“We have made progress against our commitment to deliver change and the FCA’s examination of the business has been rigorous and thorough.

“We support the work of the FCA and we will continue to work with them openly and constructively as a responsible participant in the financial services sector.”

FCA authorisation has been a mandatory requirement after the City watchdog began regulating all consumer credit providers in 2014.