Payday lender Wonga has slumped into the red after revenues slumped by almost £100 million last year... prompting zero sympathy and almost everyone on Twitter to make the same joke.
The controversial lender posted a loss of £37.3 million following a big reduction in UK consumer lending while it attempts to clean up its tarnished image for its high interest loans.
The reaction suggested these high interest loans are what most people think of when they think of Wonga.
Pay Day Lender Wonga announced a £37m loss at 8am today, at 10am it'll be £45m, at noon £76m and by 2pm £103m...— Matt Buckland (@ElSatanico) April 21, 2015
Wonga announce loss of £37.3m rising to £7.8bn in six months once 5000% interest included.— David Schneider (@davidschneider) April 21, 2015
Wonga pretax loss of £37m, though by tomorrow that will be £50m and in a week £100m...— Charles Arthur (@charlesarthur) April 21, 2015
Wonga have announced annual losses of £37million. I'm prepared to lend them £100 so long as they give me £2480 on Friday.— Benjamin Myers (@BenMyers1) April 21, 2015
Wonga has reportedly lost £37.3 million in the last year. Apparently they borrowed £100 2 years ago.— Lee Nelson (@RealLeeNelson) April 21, 2015
I might lend them £38m at 6000% interest to help them out
UK payday lender Wonga falls to loss after overhaulApril 21, 2015
That said, one Tweeter posted an original joke:
Nobody likes you, Wonga. You'll be forever a loan.— Summer Ray (@SummerRay) April 21, 2015
This was also a popular response:
Wonga announces losses of £37m. So sorry to hear that! Happy to lend you some cash if you need it. Shall we say 5000%?— Martin Lewis (@MartinSLewis) April 21, 2015
Wonga just reported a pre-tax loss of £37m for 2014. I'd happily lend them £100 if they need it, as long as they pay back £1230 next Monday.— Jacob (@OhHeyJacob) April 21, 2015
As was this:
It's the Wonga employees I feel sorry for ... pic.twitter.com/sPKhtvSgW3— AngryBritain.com (@AngryBritain) April 21, 2015
Executive chairman Andy Haste said: "We know it will take time to repair our reputation and gain an accepted place in the financial services industry, but we're determined to deliver on our plans and serve our customers in the right way."
In line with its forecast in July that it would be smaller and less profitable over the near term, Wonga reported that lending volumes fell by 36% to £732 million last year, from £1.1 billion in 2013.
It made 2.5 million loans in the UK last year against 3.7 million in 2013 and the number of customers fell from around one million to 575,000 in the UK. However, its default rate improved from 6.9% to 6.6%.
Last June, Wonga was ordered to pay compensation of £2.6 million by the Financial Conduct Authority after sending threatening legal letters from fake law firms to 45,000 customers.
In October it said it had written off a total of £220 million of debt belonging to 330,000 customers after admitting making loans to people who could not afford to repay them.
The business, which earlier this year announced plans to cut 325 jobs, has carried out a review of its business to ensure it is lending only to customers who can reasonably afford to repay their loans.
It believes there are 13 million people across the UK who are cash and credit constrained and under-served by mainstream financial services.