It would be fair to say that Wonga have had better years. For a number of years, the company was on the up, and they have become the firm that people immediately think of when they consider payday loans. For a while, the ubiquitous nature of the firm was a positive thing for the company. After all, if Wonga was the name that everyone thought of when they were considering a payday loan, this meant that they were picking up more clients and borrowers than other companies.

However, with negativity growing around payday loan firms, Wonga found themselves facing severe and continual media pressure and criticism. The level of APR associated with payday loans, and Wonga loans, has been the main issue that people and the media have, but there have been many other issues that Wonga has suffered from.

With a £37 m loss in the past financial year, the company doesn’t have its troubles to seek but the news that the company was fined by the Financial Conduct Authority was probably even more damaging. The £2.6m the company was ordered to pay out in compensation was a blow, but the fact that they were found to have sent threatening letters to their customers which reportedly came from law firms. These law firms were fake and the public perception of Wonga took a serious dip. When you think about the fact that the firm was hardly held in the highest of esteem in the first place, this is a big concern.

Wonga are considering a name change

In fact, Wonga are in such a bad way that there is talk that the company may change its name. After all, if people are being advised not to take out Wonga loans, they may find it more acceptable to offer loans under a different name. Before too long, the name change will become known and people can make their own mind up, but it may even be that a name change will allow the company to have a fresh start, and people may give them another chance.

At this moment in time, you should be looking to avoid Wonga loans but if you do need financial assistance, guarantor loans may be of better value and interest. Thanks to the role of the guarantor, the borrower will receive a more attractive APR rate, which means that they will pay back a smaller amount of money. This is definitely a great reason to avoid loans from Wonga and look for a more affordable option instead.