Press Complaints Commission Halton House, 20-23 High Holborn, EC1N 7JD
spacer spacer
SEARCH FOR     Or try the cases search  
News
  spacer
Making a complaint
Code of Practice Information
Cases
Code Advice
 

Complainant Name:
Wonga

Clauses Noted: 1

Publication: Daily Mirror

Complaint:

Wonga complained to the Press Complaints Commission via Lewis Silkin solicitors that the newspaper had, in breach of Clause 1 (Accuracy) of the Editors' Code of Practice, incorrectly claimed that Wonga charged customers "4,214% interest on short term loans". In fact, this figure represented Wonga's representative APR, which was a measure designed for annual products quite different to those provided by Wonga. Wonga provided short term loans of up to a month with a simple, non-compounding interest of 1% a day. If loans remained unpaid after a maximum of 60 days, balances were frozen and no further interest was added to the principal sum owed. Wonga was further concerned that the article referred to the company as a "loan shark" without making clear that it operated within both the law and the regulation governing the industry.

Resolution:

The complaint was resolved when the PCC negotiated the publication of the following correction:

Following Brian Reade's column of 13 October 2012 concerning Wonga's sponsorship of Newcastle United, we have been asked to make clear that the 4214% interest charge for Wonga as stated is an annual percentage rate and that Wonga do not literally charge this rate to their customers. They freeze interest of any balances after a maximum of 60 days so no further interest is added to the sum owed.

Date Published: 01/02/2013



<< Go Back



 
    spacer