Anglicans ditch stake in Wonga

THE Church of England had severed its ties with Britain’s biggest payday lender, Wonga, it said this week, ending an association with the highinterest, short-term lender that the Archbishop of Canterbury had called embarrassing.

The Church Commissioners, which manages the church’s £6.1-billion (R112-billion) in assets, said the small indirect exposure to Wonga in its venture capital portfolio was removed.

“The Church Commissioners no longer have any financial or any other interest in Wonga,” the body said on Thursday.

The move ends an awkward situation for Archbishop Justin Welby, who has vowed to drive Britain’s payday lenders out of business by supporting credit unions as an alternative.

Last year, Welby branded Wonga’s lending activities as “morally wrong” in a scathing attack on lenders that charge high interest rates on loans that are typically repaid when borrowers receive their next pay cheques.

“I’m absolutely delighted that we are now out of Wonga and have taken no profit from it,” he told BBC television.

There was no immediate comment from Wonga.

The church’s decision comes after Britain’s financial watchdog orderedWonga last month to pay £2.6-million in compensation to 45 000 customers for sending them fraudulent letters from nonexistent law firms threatening legal action.

The Church Commissioners said the investment had been worth less than £100 000, or considerably less than 0.01% of the value of Wonga, which made a profit of £62.5-million in 2012.

The asset manager said it had never invested directly in Wonga. The indirect exposure arose through pooled funds, and the church had not made any profit from the stake.

The institution said it had now made ethical investment changes and would announce new controls later in the year. —