Payday lender Wonga lost its third chief executive in a year as interim boss Tim Weller was yesterday revealed to have left the embattled firm.
Labour peer Lord Mitchell – who advises Ed Miliband on enterprise – unusually seized on the troubles to forecast the demise of the group.
“Another Wonga CEO resigns after 6 mths,” he tweeted. “‘Ship. Deserting. Rats. Sinking’. Rearrange anyway you like – Wonga are toast.”
Weller followed Niall Wass, who quit in May, and Wonga co-founder Errol Damelin who stepped aside as chief executive late last year. The consumer credit industry is facing new rules from the Financial Conduct Authority, which includes a cap on rates.
Wonga needs to work towards getting a full licence under the new regime, as well as writing off arrears of borrowers who should not have been offered loans, and creating products which comply with incoming rules.
Another Wonga CEO resigns after 6 mths. 'Ship. Deserting. Rats. Sinking'. Rearrange anyway you like - Wonga are toast.— Parry Mitchell (@lordparry) November 20, 2014
Chairman Andy Haste, who joined Wonga in July, will take a more hands-on role. It is thought the firm wants a single leader, with Weller’s presence diluting the reforms’ chances.
Wonga is still looking for a permanent chief executive, but is not expected to find one until some months into 2015 at the earliest.
“This was a mutual decision, following a comprehensive handover, and will ensure clear leadership in the weeks and months ahead,” said Haste.