Published on July 11th, 2014 | by FinanceLoophole0
Wonga – Church of England votes with its feet!
The UK’s largest payday lender Wonga, has until today been linked with the Church of England who had investments in the payday loan company.
Justin Welby the Archbishop of Canterbury has recently been involved in an embarrassing controversy after stating he wanted to put Wonga out of business. It was later pointed out that the Church had an investment on the payday loan company to the tune of some £75,000 through an investment company as a part of its venture capital portfolio of investments.
The Church Commissioners who look after the investments of the Church of England said that they would be undertaking a number of ethical investment changes to its investment portfolio.
The archbishop said that
I have been absolutely clear that I do not believe that the rates of interest charged by these companies are ethical and moral – they are legal but they are not ethical or moral.
We will wait to see if he can come up with an alternative to the payday lenders as its clear they fill a place in the market that many want. Justin Welby himself recently warned that forcing payday loan companies out of business too quickly could leave poor people at the mercy of criminal loan sharks.
A bit more about Wonga payday loan company
Wonga was founded by Errol Damelin and Jonty Hurwitz – both now aged 44 and originally from South Africa – in 2007.
Within two years of setting the loans company up, they had raised £14million from City investors – and now the multi-millionaires enjoy luxury homes and lifestyles.
Mr Damelin’s personal fortune is estimated at more than £34million, while Mr Hurwitz’s is said to be over £25million.
Mr Damelin, who reportedly paid himself £1million a year, has previously claimed the loans Wonga provides are a force for good.
In 2012, he said: ‘Credit in consumer society is absolutely critical. Without it, you have no social mobility…wealthy people will stay wealthy.