The Church versus Wonga

The Church versus Wonga.

The Church of England plans to compete against Wonga, the payday lender, by providing an alternative to the high interest loan firm. The Church wants to force Wonga out of business, by expanding its credit unions and providing an alternative.

The Archbishop of Canterbury who is also a former financier currently sits on the Parliamentary Commission on Banking Standard, and has lobbied for a cap on high interest rates charged by the loan companies in the past.

Our View

The move from the Church is potentially all about making money.  There is clearly a need for instant access to funds like Wonga offers. 

The Church is one of the wealthliest organsitions in the UK and has the means to do this and compete. 

It wants to reduce interest rates charged to people in debt, which is an admirable goal.  Competition is key here.  The great the number of larger players in the payday loan market, the cheaper it becomes.