Britain’s biggest payday lender Wonga has reported a pre-tax loss of £37.3m for 2014.
The scale of Wonga’s downfall is staggering as the company reported a pre-tax profit of £39.7m in 2013. (Read: The rise and fall of Wonga)
Lending volumes fell to £732m last year, from £1.1bn in 2013.
Customer numbers fell from one million to 575,000.
Wonga spent 2014 courting a number of controversies including paying £2.6m in compensation to 45,000 customers after using letters from fake legal firms to chase debts.
Wonga chairman Andy Haste, said: “We said Wonga would be smaller and less profitable in the near term as we focus on creating a sustainable business that lends responsibly and transparently to customers who can afford to borrow from us.
“We know it will take time to repair our reputation and gain an accepted place in the financial services industry.”
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