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UK: Church embarrassed over 'payday' loan revelation

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UK: Church embarrassed over 'payday' loan revelation

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The head of the Church of England has been left red-faced after it emerged that the institution had invested indirectly in a short-term loan company – one which he had earlier vowed to drive out of business.

It is a major setback for Archbishop of Cantebury Justin Welby, who had launched a scathing attack on “Wonga” and other so-called “payday” lenders who charge high interest rates.

But the former oil executive and a member of Britain’s Banking Standards Commission said he would push ahead with his campaign to compete with, and eventually render obsolete, a business he labels “morally wrong.”

A British newspaper reported that the Church’s pension fund invested in a firm that led Wonga’s 2009 fundraising.

The Church has since said that the amount it invested indirectly in Wonga was around 87,000 euros.