Council's Wonga shares

Newcastle City Council admits its pension fund has shares in Wonga, despite the council's vociferous criticism of the company.

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Full report: Local councils invest £250,000 in controversial payday loans company

Newcastle City Council is one of several local authorities that have invested in the payday loans company, Wonga, despite it campaigning against the company for years.

Local councils have invested nearly a quarter of a million pounds of their pension funds with the controversial company.

Newcastle's council leader has told Tyne Tees that he would be getting fund managers to review the portfolio.

But as Dan Ashby reports, it may not be that simple.

Council to continue campaigning against payday loan companies

"Newcastle City Council has no direct investments in pay day loan companies and we will continue our vigorous campaign against an industry that we believe contributes to people’s debt problems.

"We have in the past publicly voiced our dislike at the fact that the pension fund, which is not controlled by Newcastle City Council, chooses to invest in companies that we believe harm our city. We will continue to lobby hard for it to review its portfolio and make more ethical decisions about where it invests its money. We believe it should also review its approach to alcohol and tobacco linked investments.

"In the meantime, we will continue our award-winning work, cracking down on illegal money lending, funding and encouraging the use of credit unions and making sure people in our city have as much access as possible to affordable credit."

– Newcastle City Council

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