Thursday 20 November 2014 9:01 pm

Labour adviser Lord Mitchell forecasts Wonga end as boss Tim Weller quits

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.
 
https://twitter.com/lordparry/status/535408512231567360
 
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.
 

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