Wonga staff pay to meet ministers

Payday loan firm in cash-for-access controversy

A CONTROVERSIAL payday loan company paid £1,500 per head for tickets to meet Government ministers at a ‘speed dating’ event.

Representatives of Wonga. com – accused of operating as ‘legal loan sharks’ and preying on those in financial difficulty – are said to have enjoyed ‘ cosy meetings’ with ministers.

The event, which was also attended by corporate giants such as Aviva, Barclays and PricewaterhouseCoopers, was held in a ballroom in Birmingham during the Conservative party conference.

According to one witness, eight firms sat at a table with a minister for 20 minutes before moving on to the next table where another minister was seated.

It is understood that Michael Fallon, the enterprise minister, David Gauke, the Treasury’s exchequer secretary, and Sajid Javid, its economic secretary, were at the meeting.

Their attendance was not confirmed by the Conservative party, which insisted it was a ‘ private event’. Last night there was criticism of the decision to allow Wonga. com, which charges annual interest rates of up to 4,200 per cent, to buy access to ministers at a time when it is facing a major investigation into its activities by the Office of Fair Trading.

Labour MP Stella Creasy said the debate over payday loans should be transparent.

She said: ‘Cosy chats with a minister at conference are bad. Public debate about the issues is good.’

Wonga gives loans of up to £1,000 to customers after only 15 minutes. The average amount is £255.

Last year, as the firm benefited from customers’ financial troubles, the number of loans it handed out rocketed by nearly 300 per cent to 2.5million.

In February, the Office of Fair Trading began an inquiry into the payday loan industry amid fears that it may be ‘taking advantage of people in financial difficulty’.

Last night a Government spokesman said: ‘All political parties regularly meet with business people. The Government is working with the industry and consumer organisations to ensure that government regulation provides people with the right protections.

‘It is essential for good regulation that ministers and others meet with and listen to the views of the businesses they regulate as well as those who

‘Essential to listen’

campaign for tougher measures.’ A Wonga.com spokesman said: ‘The conference was attended by many of the UK’s leading businesses.

‘Of course we engage with the Government, as do most companies in the UK.’

It emerged yesterday the Labour party held its own ‘Business Forum’ during its annual party conference in Manchester for a price of £1,550 per person for a full week’s pass. Business leaders could have breakfast with leader Ed Miliband, and spend the rest of the day with his shadow cabinet team, including round table discussions.

The day ended with a twohour business reception with Mr Miliband and his Treasury team, including the Shadow Chancellor Ed Balls.

Wonga.com did not attend the Labour event.

Earlier this month, Wonga. com signed a deal to become the new sponsor of Premier League Newcastle United, its third football sponsorship deal.

Local MPs criticised the deal as an ‘utter disgrace’ because the North East is Britain’s personal insolvency capital.

Yesterday the debt advice charity, the Consumer Credit Counselling Service, said it has seen a ‘dramatic’ rise in the number of people with multiple payday loans seeking help.

Between January and June, 2,015 of those who sought help had five or more payday loans, averaging a total of around £1,500.

For the whole of 2009, there were just 716 such requests for help.