With Wonga pushing to expand internationally, it was only a matter of time before the parasitical lender drew the ire of foreign financial regulators. Speaking of operations launched in five other countries across three continents, former chief exec Nial Wass told the BBC:
“We are still refining our algorithms [the arithmetical rules underlying the lending decisions] all the time, so we are still declining a large number of people who are applying, and over time as we learn more we will open up what we call our “accept rates” and take a lot more”
But it turns out this is total BS … at least in South Africa where the firm wasn’t even bothering to verify the income of loan applicants. The country’s credit regulator has ordered Wonga to submit an audit report, withdraw court judgements and amend affected customers’ credit ratings at its own expense.
It isn’t just interest rates exceeding 5,000% which have been exported by the British outfit.
Yes, those awful puppets have been given Afrikaner and black South African accents …