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Wonga posts pre-tax loss of £37 million

Payday lender Wonga has reported a pre-tax loss of £37.3 million for 2014 after revenues declined by 31% on a year earlier.

Payday lender Wonga has reported a pre-tax loss of £37.3 million for 2014 Credit: PA

It slumped into the red after revenues fell by almost £100 million last year.

The firm's figures follow a significant drop in UK consumer lending while the controversial lender attempts to clean up its tarnished image.

Revenues declined to £217.2 million in the period.

We know it will take time to repair our reputation and gain an accepted place in the financial services industry, but we're determined to deliver on our plans and serve our customers in the right way.

– Wonga Executive chairman Andy Haste

325 job losses at Wonga due to restructuring

325 job losses at Wonga due to restructuring Credit: Dominic Lipinski/PA Wire

Wonga has announced restructuring which expected to lead to the loss of 325 jobs.

The payday lender currently employs around 950 people and said the losses come as it aims to, "refocus on its consumer businesses."

Wonga can no longer sustain its high cost base which must be significantly reduced to reflect our evolving business and market. Regrettably, this means we’ve had to take tough but necessary decisions about the size of our workforce. We appreciate how difficult this period will be for all of our colleagues and we’ll support them throughout the consultation process.

– Andy Haste, Chairman, Wonga

The move is hoped to save the company £25 million over the next two years. Wonga said costs at the company tripled between 2012-2014.

There will now be a 30 day consultation period for those who are at risk of losing their jobs.

Wonga escapes criminal investigation over fake letters

Wonga will not face a criminal investigation after it sent customers fake legal letters, police have confirmed.

Wonga escapes criminal investigation over fake letters Credit: Dominic Lipinski/PA Wire

City of London Police said that, after a "thorough review", it concluded "there is not sufficient evidence to progress a criminal investigation."

Last June, the payday lender agreed with the City regulator to pay £2.6 million in compensation for the letters it sent from non-existent law firms.

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